But with demand for energy growing year on year, consumption of coal continues to increase.
The International Energy Agency (IEA) estimates that natural gas consumption for power generation will increase by 20% by 2050 and consumption of coal will decline.
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Nationwide that switching amounted to an uptick of some 8 billion cubic feet a day of gas consumption, offsetting millions of tons of coal.
On Thursday, state-run news agency Xinhua reported that the authorities have now set a target designed to curb the growing consumption of energy, and coal in particular.
Many coal companies such as Alpha Natural Resources and Peabody Energy Corporation are mulling over the fate of coal as consumption has continued to decline in the U.S.. Natural gas has undoubtedly given coal companies a run for their money since prices began to slide last year.
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The future is coal-based: half of Asia's primary energy consumption, and 70% of China's, is coal.
The carbon bubble, quite simply, is the constantly increasing consumption of fossil fuels that began with coal in the 19th century and then continued with oil and gas in the 20th.
Meantime Hanson will hunt for more growth in overseas markets--now 40% of sales--where coal accounts for 22% of primary energy consumption.
Last week the U.S. Energy Information Administration reported a shocking drop in power sector coal consumption in the first quarter of 2012.
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Half of the 2 billion tons of coal China burns each year, accounting for two-thirds of the country's energy consumption, feeds industry.
Fitch Credit Ratings estimates that this is whittling coal sales by about 63 million tons per year, equivalent to 6% of 2010 consumption, with new EPA regulations further reducing sales by another 5%.
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