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 2018, the U.S. spent $1.3 trillion on energy, or 6.2% of Gross Domestic Product (GDP).1 When spread over the population, annual costs were $3,891 per person.1 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.2 The nation’s heavy reliance on fossil fuels (primarily imported crude oil) poses major concerns for energy security. Potential gains in energy efficiency in all sectors may be offset by increases in consumption, a phenomena called the rebound effect.3

U.S. Energy Consumption: Historic and Projected Values4,5

U.S. Energy Consumption: Historic and Projected

Patterns of Use

Demand

  • With less than 5% of the world’s population, the U.S. consumes almost 17% of the world’s energy and accounts for 15% of world GDP. In comparison, the European Union has 7% of the world’s population, uses 11% of its energy, and accounts for 16% of its GDP, while China has 18% of the world’s population, consumes 24% of its energy, and accounts for 18% of its GDP.6,7
  • Each day, U.S. per capita energy consumption includes 2.6 gallons of oil, 9.7 pounds of coal, and 255 cubic feet of natural gas.5,6
  • Residential daily consumption of electricity is 11.8 kilowatt-hours (kWh) per person.5,6
  • In 2019, total U.S. energy consumption decreased 0.9% from 2018 peak levels.5

U.S. Energy Consumption by Sector, 20195

U.S. Energy Consumption by Sector, 2019

Supply

  • By current estimates, 79% of U.S. energy will come from fossil fuels in 2050.4
  • Renewable energy consumption is projected to increase annually at an average rate of 1.9% between 2019 and 2050, compared to 0.3% growth in total energy use. Residential photovoltaics are projected to grow annually by nearly 6%. At these rates, renewables would only provide 16% of U.S. energy consumption in 2050, which is slightly more than today’s 11.4% renewable energy consumption.4,5
  • U.S. net imports met 3% of domestic oil demand in 2019.5 This figure is projected to be slightly negative (net exporter) by 2050.4 Canada, Mexico, and Saudi Arabia are the three largest foreign suppliers of U.S. oil.8
  • The Persian Gulf region accounted for 11% of U.S. petroleum imports in 2019 and contains 50% of the world’s oil reserves.7,8 Roughly 16% of all reserves lie in Saudi Arabia alone.7 OPEC controlled 18% of the oil imported by the U.S. in 2019.5

U.S. Energy Consumption by Source, 20195

U.S. Energy Consumption by Source, 2019

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.
  • Methane leakage from the oil and natural gas supply chain (fracking wells, pipelines, etc.) is also of concern as it is estimated to be 13 million metric tons (MMT) per year, equivalent to 2.3% of U.S. annual gross natural gas production. With a global warming potential of 28, this methane leakage is equivalent to 364 MMT of CO2, or 5.5% of total U.S. CO2e emissions in 2018.9,10
  • U.S. greenhouse gas (GHG) emissions in 2018 were 3.7% greater than 1990 values. 75% of total U.S. GHG emissions came from burning fossil fuels in 2018.9
  • 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.11

U.S. GHG Emissions, 20189

(Million Metric Tons CO2 Equivalent)

U.S. GHG Emissions, 2018

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 CSS factsheets on personal transportation and residential buildings for additional ways to trim energy consumption.

Increase Efficiency

Increase Renewables

  • Installed wind capacity in the U.S. grew 10.5% in 2019, expanding to over 107 GW.13,14 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.15
  • Solar photovoltaic modules covering 0.6% of the land in the U.S. could supply all of the nation’s electricity.16

Encourage Supportive Public Policy

  • The U.S. currently produces 15% of the world’s energy-related CO2 emissions. U.S. emissions are projected to decrease by 8% by 2035 from current levels.4,17 The Climate Action Now Act, passed by the House in May 2019, would require an annual plan to ensure the United States meets its stated goals under the Paris Agreement of reducing greenhouse gas emissions by 26-28% by 2025.18 The Act has not yet been brought to a vote in the Senate.19 In comparison, the United Kingdom established a goal of having net-zero greenhouse gas emissions by 2050.20
  • In 2012, new auto manufacturing standards for model years 2017-2025 were set, raising corporate average fuel economy (CAFE) standards to 54.5 miles per gallon for new light-duty vehicles in 2025. In 2020, the Safer Affordable Fuel-Efficient (SAFE) Vehicle Rule revised the CAFE standards down to an annual fuel efficiency improvement of 1.5% until 2030, equal to an average fleet-wide target of 40.5 mpg. The original CAFE rule was projected to save 4 billion gallons of fuel, between $326 and $451 billion, and cut CO2 emissions by 2,000 MMT. The new SAFE rule will result in 867-923 MMT more COemissions than CAFE.21,22
  • The growth of wind and biomass was spurred by the 2.5¢/kWh Federal Production Tax Credit (PTC), as well as state Renewable Portfolio Standards (RPS) that require a certain percentage of electricity be derived from renewable sources. The PTC for wind will expire December 31, 2020.23 Thirty-seven states, the District of Columbia, and four U.S. territories had renewable portfolio standards or goals in place as of April 2020.25
  • A $2,500-$7,500 federal tax credit is available for electric and plug-in hybrid electric vehicles purchased after January 1, 2010.26
  • Homeowners can receive tax credits for up to 26% of purchase and installation costs for renewable energy additions to new and existing houses until 2021. Eligible renewable technologies include geothermal heat pumps, solar water heaters and PV panels, small wind turbines, and residential fuel cells.27

States with Renewable Energy Portfolio Standards24

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) (2020) State Energy Data 2018: Prices and Expenditures.
  2. U.S. EIA (2016) “Energy Explained, Your Guide To Understanding.”
  3. International Risk Governance Council (2012) The Rebound Effect: Implications of Consumer Behaviour for Robust Energy Policies.
  4. U.S. EIA (2020) Annual Energy Outlook 2020.
  5. U.S. EIA (2020) Monthly Energy Review April 2020.
  6. U.S. Central Intelligence Agency (2020) The World Factbook.
  7. U.S. EIA (2020) “International Energy Statistics - Total Primary Energy Consumption.”
  8. U.S. EIA (2020) Petroleum FAQs.
  9. U.S. Environmental Protection Agency (2020) Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2018.
  10. Alvarez, R. et al. (2018) Assessment of methane emissions from the U.S. oil and gas supply chain. Science, 361(6398): 186-188.
  11. U.S. EIA (2017) “Renewable Energy and the Environment.”
  12. American Council for an Energy-Efficient Economy (2019) Halfway There: Energy Efficiency Can Cut Energy Use and Greenhouse Gas Emissions in Half by 2050.
  13. American Wind Energy Association (AWEA) (2020) U.S. Wind Industry First Quarter 2020 Market Report.
  14. AWEA (2019) U.S. Wind Industry First Quarter 2019 Market Report.
  15. U.S. DOE (2015) Wind Vision Report: Report Highlights.
  16. U.S. DOE, National Renewable Energy Laboratory (2007) “The Regional Per-Capita Solar Electric Footprint for the United States.”
  17. Gilfillan, D., et al., United Nations Framework Convention on Climate Change, and BP (2019) Global Carbon Project: CO2 Territorial Emissions in 2018.
  18. U.S. House of Representatives (2019) Climate Action Now Act.
  19. The Library of Congress (2020) Bill Summary and Status 116th Congress, HR 9.
  20. United Kingdom Government (2019) “UK Becomes First Major Economy to Pass Net Zero Emissions Law.”
  21. 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.
  22. NHTSA and U.S. EPA (2020) “The Safer Affordable Fuel-Efficient (SAFE) Vehicles Rule for Model Years 2021–2026 Passenger Cars and Light Trucks, Final Rule.” Federal Register, 85:84.
  23. Congressional Research Service (2020) The Renewable Electricity Production Tax Credit: In Brief.
  24. Database of State Incentives for Renewables and Efficiency (2019) Renewable and Clean Energy Standards.
  25. National Conference of State Legislatures (2020) State Renewable Portfolio Standards and Goals.
  26. U.S. DOE (2012) “Fuel Efficiency Vehicle: Tax Incentive Information Center.”
  27. Energy Star (2020) “Renewable Energy Tax Credits.”
Cite as: 
Center for Sustainable Systems, University of Michigan. 2020. "U.S. Energy System Factsheet." Pub. No. CSS03-11.