While oil and gas producers were busy watching for the evolution
of prices and supply and demand fundamentals for their
commodities, coal fortunes have been on the rise and are likely
to continue so. This is contrary to expectation due to the
complex environmental problems of burning coal and the usually
higher investment required for its use. Between 1965 and 1972
world coal consumption rose by hardly 6 per cent while oil and
gas consumption rose by almost 70 per cent each. The world
seemed to be getting out of coal. Then came the correction of
oil prices in 1973, which brought about tremendous changes in
energy policies in industrial countries including increased coal
consumption. Coal was subsidised or lightly taxed in many
countries while oil products were and continue to be heavily
taxed. Between 1972 and 2011 oil consumption increased by 58 per
cent while coal consumption increased by 146 per cent and gas
consumption increased by 189 per cent. Oil share in total
primary energy consumption has been stead