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I think that the citizens prefere to use firewood in their house instead of coal. But they also take the fuel wich is the nearest from their house.
During winter the use of firewood is very high. If you have even a little shortage right when someone in looking for fuel, he will take some coal.
I don't build mine and quarry and I don't produce any steel tools. I produce some iron tools at the begining of the game then I buy all the tools I need from the Tradings posts.
I never produce nor buy Coal.
I buy all the stones, iron and steel tools in my trading posts.
This last game I decided to also trade for herbs. Place a herbalist right by markets. Best idea I have seen on these forums.
What about a population of 1000? Can they run fine on just iron tools?
My trade phase includes, 4 trade post and 4 fully operational Forresters. With that as your base, you have no worries about anything. You get to where you can stock 2500 firewood per trade dock and continuly supply it as you trade.
1st priority for trade, imho. 4 crop seeds and 4 orchard seeds, and one live stock. That is all you ever need to maintain a healhty diet. You can really go less I think, down to 3 each. I like the looks of the differant fields and orchards.
Now you are ready for real trading. My 1st priority is to dump the blacksmith. So, I order up 200 steel tools from the 1st general trader. 2nd for me is stone, by this time you are in bad need!!!. Order up 4 general merchants one at each trade port, Stone, Steel Tools, Coal and if you are like me herbs. EVERY TRIP.
You do not have to buy everything, but 4 boats gives you a steady supply.
This whole phase is to allow you expand rapidly after this point, without much trouble. You have been building reserves for decades. I am normally sitting on 150k-200 k food at this point. *stored in 3 parts of the map, to avoid tornado wipe out* I even give my farmers a year or so off now and then.
One more thing, not sure if you aware of warm coats. Use them!! This you can do yourslef, it takes planning and a few years. You need, 3 cattle pens and 1 sheep pen. You will make just a bit more leather then you need, but not much. The extra beef is good for trade.
2-3 Tailors per ring, 4 is overkill!! :) I find 2 works fine for me. You can do later game trade with the coats also.
At the moment I have 2000 firewood, 900 coal in storage and 168 coal in houses. Not unreasonable.
The same layout should work for importing, though: trading post - stockpile - blacksmith.
I keep plenty of firewood on hand, generally about 4x the yearly firewood consumption.
It's worth noting that my blacksmiths are educated, so they are producing twice as many tools as an uneducated blacksmith. On any map that starts me with good surface resources, I build stone houses from the very beginning, which cuts down on all fuel consumption.