U.S. Energy System Factsheet

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Energy plays a vital role in modern society, enabling systems that meet human needs such as sustenance, shelter, employment, and transportation. In 2016, the U.S. spent $1.0 trillion on energy, or 5.6% of Gross Domestic Product (GDP).1,2 When spread over the population, annual costs were $3,211 per person.1,3 Environmental impacts associated with the production and consumption of energy include global climate change, acid rain, hazardous air pollution, smog, radioactive waste, and habitat destruction.4 The nation’s heavy reliance on fossil fuels (primarily imported petroleum) poses major concerns for energy security. Potential gains in energy efficiency in all sectors may be offset by increases in consumption, leading to overall increases in energy use.5 The unsustainable nature of the current U.S. energy system is described below.

U.S. Energy Consumption: Historic and Projected Values6,7

U.S. Energy Consumption: Historic and Projected

Patterns of Use

Demand

  • With less than 5% of the world’s population, the U.S. consumes 17% of the world’s energy and accounts for 15% of world GDP. To compare, the European Union has 7% of the world’s population, uses 14% of its energy, and accounts for 16% of its GDP, while China has 19% of the world’s population, consumes 22% of its energy, and accounts for 18% of its GDP.8,9
  • Each day, U.S. per capita energy consumption includes 2.5 gallons of oil, 12 pounds of coal, and 227 cubic feet of natural gas.7,8
  • Residential daily consumption of electricity is 11.6 kilowatt-hours (kWh) per person.8,9
  • In 2017, total U.S. energy consumption was 3.25% below 2007 peak levels, similar to total energy consumption in 2002.7

U.S. Energy Consumption by Sector, 20177

U.S. Energy Consumption by Sector, 2017

Supply

  • By current estimates, 78% of U.S. energy will come from fossil fuels in 2050.6
  • Renewable energy consumption is projected to increase annually at an average rate of 1.6% between 2017 and 2050, compared to 0.4% growth in total energy use. Photovoltaics are projected to grow the fastest. At these rates, renewables would only provide 14% of U.S. energy consumption in 2050, which is more than today’s 11.27% renewable energy consumption.6,7
  • U.S. net imports met 19% of domestic oil demand in 2017.7 This figure is projected to drop to 4% in 2050.6 Canada, Saudi Arabia, and Mexico are the three largest foreign suppliers of U.S. oil.10
  • The Persian Gulf region accounted for 18% of U.S. petroleum imports in 2017 and contains 48% of the world’s oil reserves.9,10 Roughly 16% of all reserves lie in Saudi Arabia alone.9 OPEC controlled 33.4% of the oil imported by the U.S. in 2017.7
  • There is disagreement as to when oil production will peak. Assuming reserves of 3.3 trillion barrels and a production growth rate of 2%, the U.S. Department of Energy (DOE) projects global oil production to peak in 2044.11

U.S. Energy Consumption by Source, 20177

U.S. Energy Consumption by Source, 2017

Life Cycle Impacts

  • Air emissions from the combustion of fossil fuels are the primary environmental concern of the U.S. energy system. Such emissions include carbon dioxide (CO2), nitrogen oxides, sulfur dioxide, volatile organic compounds, particulate matter, and mercury.
  • U.S. total GHG emissions increased by 2.4% from 1990 to 2016. 76% of total U.S. GHG emissions were energy-related CO2 emissions in 2016.12
  • Other energy sources also have environmental implications. For example, issues associated with nuclear power generation include radioactive waste and a high energy requirement to build the plants and mine the uranium; large hydroelectric power plants cause habitat degradation and fish kills; and wind turbines alter landscapes in ways some find unappealing and can increase bird and bat mortality.13

U.S. GHG Emissions, 201612

(Million Metric Tons CO2 Equivalent)

U.S. GHG Emissions, 2016

Solutions and Sustainable Alternatives

Consume Less

  • Reducing energy consumption not only brings environmental benefits, but also can result in cost savings for individuals, businesses and government agencies.
  • Living in smaller dwellings, living closer to work, and utilizing public transportation are examples of ways to reduce energy usage. See the Center for Sustainable Systems’ factsheets on personal transportation and residential buildings for additional ways to trim energy consumption.

Increase Efficiency

Increase Renewables

  • U.S. installed wind capacity grew 8.5% in 2017, expanding to 89 GW.15 If 224 GW of wind capacity were installed by 2030, an amount determined feasible by one U.S. DOE study, wind would satisfy 20% of projected electricity demand.16
  • Solar photovoltaic modules covering 0.6% of the land in the U.S. could supply all of the nation’s electricity.17

Encourage Supportive Public Policy

  • The U.S. currently produces 15% of the world’s energy-related CO2 emissions, which are expected to increase by 2.5% between 2017 and 2050.6,18 The Clean Energy and Security Act, passed by the House in June 2009, would have required emissions reductions of 3% below 2005 levels in 2012, 20% below 2005 levels in 2020, 42% below 2005 levels in 2030, and 83% below 2005 levels in 2050.19 The Act was not brought to a vote in the Senate and did not become law.20 In comparison, the United Kingdom established a goal of reducing CO2 emissions 80% below their 1990 level by 2050.21
  • A joint rule issued by the U.S. EPA and National Highway Traffic Safety Administration (NHTSA) in 2012 set new auto manufacturing standards for model years 2017-2025, raising corporate average fuel economy (CAFE) standards to 54.5 miles per gallon for new light-duty vehicles in 2025. This rule is projected to save 4 billion gallons of fuel, between $326 and $451 billion, and cut CO2 emissions by 2 billion metric tons.22
  • If the Arctic National Wildlife Refuge (ANWR) were opened to oil drilling, production would peak at 321.2 million barrels of oil per year in 2041.23
  • The growth of wind and biomass was spurred by the 2.3¢/kWh Federal Production Tax Credit (PTC), as well as state Renewable Energy Portfolio Standards (RPS) that require a certain percentage of electricity be derived from renewable sources. The PTC for wind will expire December 31, 2019.24 Thirty-seven states, the District of Columbia, and four U.S. territories had renewable portfolio standards or goals in place as of August 2017.25
  • A $2,500-$7,500 federal tax credit is available for electric and plug-in hybrid electric vehicles purchased after January 1, 2010.26
  • Residential consumers can receive tax credits for up to 30% of purchase and installation costs for renewable energy additions to new and existing houses until 2019. Eligible renewable technologies include geothermal heat pumps, solar water heaters, solar panels, small wind turbines, and residential fuel cells.27

States with Renewable Energy Portfolio Standards25

States with Renewable Energy Portfolio Standards

kWh = kilowatt hour. One kWh is the amount of energy required to light a 100 watt light bulb for 10 hours.
Btu = British Thermal Unit. One Btu is the amount of energy required to raise the temperature of a pound of water by 1° Fahrenheit.
Quad = quadrillion (1015) Btu. One Quad is equivalent to the annual energy consumption of ten million U.S. households.

 

References: 
  1. U.S. Energy Information Administration (EIA) (2018) State Energy Data System (SEDS): Prices and Expenditures.
  2. U.S. Bureau of Economic Analysis (BEA) (2018) “U.S. Gross Domestic Product.”
  3. U.S. Census Bureau (2018) “World Population Clock.”
  4. U.S. EIA (2016) “Energy Explained, Your Guide To Understanding
  5. International Risk Governance Council (2012) The Rebound Effect: Implications of Consumer Behaviour for Robust Energy Policies.
  6. U.S. EIA (2018) Annual Energy Outlook 2018.
  7. U.S. EIA (2018) Monthly Energy Review April 2018
  8. U.S. Central Intelligence Agency (2018) The World Factbook.
  9. U.S. EIA (2018) International Energy Statistics.
  10.  U.S. EIA (2018) “Petroleum and Other Liquids: U.S. Imports by Country of Origin.”
  11. U.S. EIA and U.S. Department of Energy (DOE) (2005) “When Will World Oil Production Peak?”
  12. U.S. Environmental Protection Agency (EPA) (2018) Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2016.
  13. U.S. EIA (2017) “Renewable Energy and the Environment”
  14. National Action Plan for Energy Efficiency (2008) National Action Plan for Energy Efficiency for 2025: A Framework for Change.
  15. American Wind Energy Association (2018) U.S. Wind Industry First Quarter 2018 Market Report.
  16. U.S. DOE (2015) Wind Vision Report: Report Highlights.
  17. U.S. DOE, National Renewable Energy Laboratory (2007) “The Regional Per-Capita Solar Electric Footprint for the United States.”
  18. Boden, T., et al., United Nations Framework Convention on Climate Change, and BP (2017) Global Carbon Project: CO2 Territorial Emission in 2016.
  19. U.S. House of Representatives Committee on Energy and Commerce (2009) American Clean Energy and Security Act 2009 Draft.
  20. The Library of Congress (2011) Bill Summary and Status 111th Congress, S.1733 (HR 2454).
  21. Department for Environment Food and Rural Affairs (U.K.) (2009) “Climate Change Act 2008.”
  22. National Highway Traffic Safety Administration (NHTSA) and U.S. EPA (2012) “ 2017 and Later Model Year Light-Duty Vehicle Greenhouse Gas Emissions and Corporate Average Fuel Economy Standards, Final Rule.” Federal Register, 77:99.
  23. U.S. EIA (2018) Analysis of Crude Oil Production in the Arctic National Wildlife Refuge.
  24. Database of State Incentives for Renewables & Efficiency (2016) “Renewable Electricity Production Tax Credit (PTC).”
  25. U.S. DOE (2016) “Renewable Portfolio Standard Policies.”
  26. U.S. DOE (2012) “Fuel Efficiency Vehicle: Tax Incentive Information Center.”
  27. Energy Star (2017) “Federal Tax Credits for Consumer Energy Efficiency.”
Cite as: 
Center for Sustainable Systems, University of Michigan. 2018. "U.S. Energy System Factsheet." Pub. No. CSS03-11.