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Coal Not Becoming Superfluous

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Coal Not Becoming Superfluous A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Hellwig, Fritz Article — Digitized Version Coal not becoming superfluous Intereconomics Suggested Citation: Hellwig, Fritz (1967) : Coal not becoming superfluous, Intereconomics, ISSN 0020-5346, Verlag Weltarchiv, Hamburg, Vol. 02, Iss. 9, pp. 226-228, http://dx.doi.org/10.1007/BF02930511 This Version is available at: http://hdl.handle.net/10419/137792 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu INTERVIEW Coal Not Becoming Superfluous Interview with Dr Fritz Hellwig, Vice President of the Commission of the Euro- pean Communities, Brussels The rapid change in the European energy sector has mainly affected the coal. It is more and more threatened to lose its importance. The importance of exploitation and transport means increasing competitivenes of non-European suppliers, and technical progress enables the economical use of new power categories. For the adjustment of coal demand to the present and future one, many-sided politico-economical measures and programmes are imperative. INTERECONOMICS had the occasion to talk with Dr Hellwig, Vice President of the Commission of the European Communities, about these questions. * QUESTION: The categories of ANSWER: In answering that of the same order to continue fuel to be considered when trying question, I should like to differ- over the next few years, although to ensure an ample, cheap and entiate between the overall con- we must not overlook the fact secure supply of energy for both sumption of energy and the shift that a certain recession has taken industrial and private households in favour of electricity within the place in this area, corresponding use are coal, oil, natural gas, water overall consumption of energy. to the deceleration in cyclical power and nuclear energy. To The demand for electricity ap- growth. In concrete figures, the cover future demand, producers proximately doubles over a period total energy requirement will rise and consumers of energy need to of 10 years. This corresponds to from 660 million tons of coal plan and look ahead. Thus the an average annual growth rate of equivalents in 1965/66 to 740 mil- probable development of demand 7.2 per cent. In the immediate lion tons of coal equivalents in is of primary importance in the future, the demand for electricity 1970 and 1,100 million tons of coal formation of a rational energy should probably grow at an even equivalents in 1980. policy. What do you think to be faster rate. However, over the last QUESTION: In what ratio is it the likely development of energy few years overall consumption of anticipated that the various sources demand over the next few years energy has risen by about 5 per of energy--coal, oil, etc.--will con- in the ECSC? cent per annum. We expect growth tribute to the overall demand for energy within the ECSC? ANSWER: The shift towards the FRITZ HELLWIG newer forms of primary energy has been a member of the High Authority of the European Coal will continue. Replacement of coal .and Steel Community since September 1959; after the fusion of by other forms of energy is a ECSC, EEC and Euratom, his sphere of operations will be broad- worldwide phenomenon. Naturally, ened yet further; on 1st July of this year he became a member this h.appens more quiddy in of the Joint Executive of the three European Communities. Hell- countries deficient in coal; but wig was born in Saa~brfid~en in 1912. He studied philosophy, even in coal-producing countries history and economics at the Universities of Marburg, Vienna, like France and Germany coal's Berlin and Heidelberg. In 1933 he became a Doctor of Philosophy lead in meeting the demand for and three years later a university lecturer. After being active in energy has been lost. For instance, organisations concerned with industrial economy and as an over the years 1950~1970 coal's economic adviser, Hellwig was Director of the Deutsches Industrie- share will probably have fallen institut (German Industrial Institute} in Cologne from 1951 to 1959. from 74 to 27-32 per cent. It is From 1953 to 1959, Hellwig was a member of the German Bundes- mainly oil which has taken the tag, and held the post of Chairman of its Committee on Economic place of coal. (Details about per- Policy for three years. From 1953 to 1956 he was a member of the centages of the various forms of Advisory Assembly of the Council of Europe and in 1959 became a primary energy are best seen from member of the European Parliament. the following table.) * The interview was arranged by Ernst Niemeier and DietriCh Kebschull. 226 INTERECONOMICS, No. 9, 1967 output per shift in pits in Com- Form of Energy 11950 11960119651197011980 munity countries. For example it is Brown coat 8 7 6 5 4 Co al 74 53 38 27-32 73-66 pointed out that in Germany the Oil 10 27 45 54-49 Natural gas 0 3 3 7 8-11 average output is currently about Water po~'er 6 4 3,300 kg., whereas in other Com- Atomic energy 7 9 8 1 O--It munity countries pits show shift QUESTION: Shifts among the coal, particularly in West Ger- outputs of only 1,400 kg. In re- primary forms of energy are an many, is constantly complaining ulity, however, this output criterion important, but not the only de- that oil firms, with their low-price is not a useful measure of whether cisive, reason for the deteriorating policy, are attempting to force coal a pit can survive. Even with a outlook for coal sales. On top out of the market. Is there any high output per shift, the market of this, how much are sales of justification for this accusation of may not buy the coal extracted, Community coal affected by coal "pressure competition" ~ whilst coal produced on a smaller imports from other countries~ shift output can be sold without ANSWER: There is certainly difficulty. Pits producing anthra- ANSWER: The deterioration in some justification for this argu- cite and lean coal for use on local sales prospects for Community coal ment. Undoubtedly, West Germany domestic markets--which is still is no longer caused only by is the largest energy market in very much the case in Belgium-- pressure from oil and gas--this Europe and, because of coal's high cannot be compared with pits in factor is relatively new--but also market share, it offers additional the Ruhr producing only easily because Community coal is re- opportunities to other fuels. It is marketable types of industrial and latively more expensive than im- understandable that, in such a steam coal. For pits with a rel- ported coal from third countries. situation, there should be very atively low shift output there will, We were aware that industrial and severe competition between oil, as a rule, always be local buyers steam coal from third countries-- gas, etc. But we have made the who find such coal reasonably mainly the USA but also from following observation: the price priced because of the saving on Britain---could be delivered to the level of mineral oil derivatives in- transport costs. In any case, the coasts of Europe at prices below side the Community has under- shift output cannot be used to prove those of equivalent qualities in gone a certain adjustment over the assertion that better German the Community. Over the last two the past years. Differences from pits would be closed down whilst or three years American coal, on the country to country are by no means less efficientBelgian mines continue average, has been about $ 3-3.5 per as great now as they were a few to operate. Neither is it true that ton cheaper delivered to the coasts years ago when price levels were German pits have been harder hit of Europe, than the prices at which particularly low in West Germany. by closures or that greater output Community coal can be bought This is due, in part, to the fact that capacities have to stand idle. In there. Price differences may become the oil market in West Germany Belgium, output fell by 40 per cent even more extreme when Com- is not subject to the same com- between 1957 and 1966; In France munity coal has to bear higher pulsory controls as those in other the comparable figure was 11 per transport costs to certain localities Community countries. where it is used--for instance, cent, in Holland 11.5 per cent and near the Italian or French coasts. QUESTION: Coal's decreased in West Germ~my 16 per cent. The reason why American coal sales prospects require ~ reduction However, technical output capaci- is cheaper is, firstly, because of the of output in the mining industry.
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