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Coal is ready to be burned coming right out of the ground. You can build a power plant near the mine and save on the transportation cost, since it's cheaper to transport electricity than bulk coal.

Oil has to be refined before it can be used. When the crude oil is refined, it yields multiple products, and each one has to be kept separate from the other products. It's cheaper, therefore, to transport crude oil and refine it near the end user rather than transporting the distillates separately.

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Q: Why coal is used at the source of production whereas mineral oil is transported over great distances?
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