Wyoming may feel the pangs of lower coal consumption in China

China's decision to limit coal usage may have a far-reaching impact in the United States, particularly in Wyoming where it is the mainstay of the economy.

Last week Premier Li Keqiang said China wanted to reduce its energy intensity - the amount of energy used per unit of gross domestic product - by 3.1 percent this year. That translates to an annual reduction in coal usage of 176 million tons. China's industrial sector, excluding power generators, plans to cut coal use by more than 160 million metric tons by 2020, officials at the Ministry of Industry and Information Technology said earlier this month.

Observers said the latest announcements from China coupled with last year's agreement by the US and China to cut carbon dioxide emissions represents a blow to Powder River Basin coal companies in Wyoming that have staked much of their future growth on boosting exports to China and the rest of Asia.