Overview

Resources and Consumption

West Virginia has more estimated recoverable coal reserves at producing mines than any other State except Wyoming. Coal deposits are located in the Central and Northern Appalachian basins, which underlie all but the eastern edge of the State. Those basins also hold smaller natural gas and crude oil reserves. Several rivers flowing from the Appalachian Mountains offer hydroelectric power resources. The industrial sector dominates West Virginia energy consumption, and per capita energy use is high.

Petroleum

West Virginia’s annual crude oil production is minimal, typically accounting for less than 1 percent of total U.S. output. Much of the State's crude oil output is derived from stripper wells (wells producing less than 10 barrels of oil per day). West Virginia’s only refinery, located in Newell in the far north of the State’s panhandle, processes the majority of the crude oil produced in the State and the Appalachian Basin. The Newell refinery specializes primarily in lubricants and process oils but also produces motor gasoline and diesel fuel. No petroleum product pipelines serve West Virginia markets, and the State relies on barge deliveries to meet demand. The Ohio River, on the State’s western border, serves as a major petroleum product transportation route. West Virginia is one of the few States that allow the statewide use of conventional motor gasoline. (Most States require the use of specific gasoline blends in non-attainment areas due to air-quality considerations.)

Natural Gas

Although the State's natural gas production is minimal, West Virginia’s underground natural gas storage capacity, including more than 30 facilities developed in depleted oil and gas fields, accounts for about 6 percent of the U.S. total. Because of this storage capacity, the State is an important supplier to the Northeast region during the winter months when natural gas demand peaks. The industrial sector is West Virginia’s leading consumer of natural gas, accounting for almost 30 percent of the State's natural gas consumption. Nearly one-half of West Virginia households use natural gas as their main source of energy for home heating.

Coal, Electricity, and Renewables

West Virginia is the top coal-producing State east of the Mississippi River, and its output is second in the Nation after Wyoming. State production accounts for nearly one-third of U.S. production east of the Mississippi River and over one-tenth of total U.S. coal production. Although all West Virginia coal is bituminous, coal sulfur content varies across the State. Coal produced in southern West Virginia is low in sulfur, while coal produced in northern West Virginia is high in sulfur. West Virginia leads the Nation in coal production from underground mines, which account for about 55 percent of State production. Large shipments of coal move in and out of the State primarily by rail and barge. West Virginia delivers coal to more than 25 States, most of which are on the East Coast and in the Midwest. Over 90 percent of the coal consumed in West Virginia is used for electricity generation, while the rest is mostly consumed in industrial and coke plants.

Coal-fired plants account for nearly all of West Virginia’s electricity generation. Several small hydroelectric facilities account for most of the remaining power production. West Virginia electricity production is high, and, although more than one-third of West Virginia households use electricity as their primary source for home heating, State electricity consumption is low. West Virginia ranks second in the Nation after Pennsylvania in net interstate electricity exports. West Virginia does not have a renewable portfolio standard. However, the State has adopted a net metering policy to credit customers' utility bills for electricity they provide to the grid generated from renewable sources.