U.S. Energy System Factsheet

Energy plays a vital role in modern society, enabling systems that meet human needs such as sustenance, shelter, employment, and transportation. In 2022, U.S. consumers spent $1.7T on energy, or 6.7% of GDP.1 Annual energy costs were $5,159 per person, a 30% increase from 2021.1 Energy production and consumption contribute to global climate change, acid rain, hazardous air pollution, smog, radioactive waste, and habitat destruction.2 Heavy reliance on fossil fuels poses a major energy security concern.

Patterns of Use

Demand

  • The U.S. has 4% of the world’s population4, uses 16% of the world’s energy5, and accounts for 15% of world GDP4. In comparison, the European Union has 6% of the world’s population4, uses 9% of its energy5, and accounts for 15% of its GDP4, and China has 18% of the world’s population4, uses 29% of its energy5, and accounts for 19% of its GDP4.
  • Each day, U.S. per capita energy consumption includes 2.5 gal oil, 6.82 lbs coal, and 260 cf natural gas.3, 4 Residential per capita electricity consumption is 12 kWh/d.3,4
  • In 2023, total U.S. energy consumption decreased 4% from 2018 peak levels.3
  • Potential energy efficiency gains in all sectors may be offset by increases in use, a phenomenon called the rebound effect.6
U.S. Energy Consumption by Year3

Supply

  • U.S. DOE estimates 66% of U.S. energy will come from fossil fuels in 20508, which is inconsistent with meeting IPCC carbon reduction goals9.
  • Renewable energy use is projected to grow by an average of 3.1% annually from 2022 to 2050, compared to a 0.2% growth in total energy use.8 At these rates, renewables would provide 29% of U.S. energy use in 2050.8
  • In 2023, for the fourth time since 1949, the U.S. exported more oil (10.15 M bbl/d) than it imported (8.51 M bbl/d).3 
  • Canada, Mexico, and Saudi Arabia are the three largest suppliers of U.S. oil imports. In 2023, 16% of the U.S oil import was from OPEC (The Organization of the Petroleum Exporting Countries, currently 13 members), and 10% was from the Persian Gulf region.10 The Persian Gulf contains 49% of world oil reserves (15% in Saudi Arabia alone).5
U.S. Energy Flow, 20237
Image
U.S. Energy Flow, 2023

Life Cycle Impacts

  • Air pollution emissions of CO2, NOX, SO2, VOCs, PM, and Hg from the combustion of fossil fuels are the primary environmental impact of the U.S. energy system. 
  • Methane leakage from oil and natural gas supply chain (fracking wells, pipelines, etc.) is estimated to be 13 Mt/yr, equivalent to 2.3% of U.S. annual gross natural gas production.11 With a global warming potential of almost 30, this methane leakage is equivalent to 387 Mt of CO2, or 6.1% of U.S. CO2e emissions in 2022.12,13
  • U.S. GHG emissions in 2022 were 3% less than in 1990, with 74% from burning fossil fuels.13 U.S. energy-related emissions were 14% of the world total in 202314, and are projected to decrease 20% by 2035 from 2022.8
  • Other energy sources also have environmental implications.  For example, nuclear power generation produces radioactive waste, and energy is required to build plants and mine uranium; large hydropower plants cause habitat degradation and fish kills; wind turbines alter landscapes and can cause bird and bat mortality.15
U.S. GHG Emissions by Gas in 2022 (Mt CO2e)12

Solutions and Sustainable Actions

Consume less 

  • Reducing energy use not only brings environmental benefits, but can also result in cost savings for individuals, businesses, and governments.
  • Living in smaller dwellings, living closer to work, and using public transportation are examples of ways to reduce energy use. For more, see factsheets on carbon footprint, personal transportation, and residential buildings.

Increase Efficiency

Increase Renewables (See U.S. Renewable Energy Factsheet)

  • U.S. total wind capacity grew from 45 GW in 2010 to 147 GW in 2023.17 If total wind capacity reached to 224 GW by 2030 (determined feasible by the U.S. DOE), wind would satisfy 20% of projected electricity demand.18
  • Solar photovoltaic (PV) modules covering 0.6% of U.S. land area could meet national electricity demand.19
  • The U.S. joined the global renewables and energy efficiency pledge with other 132 countries, committing to triple the world’s installed renewable energy generation capacity to 11,000 GW by 2030.20

Encourage Supportive Public Policy

  • 101 Parties representing 103 countries and 80.7% of global GHG emissions, have adopted a net-zero target either in law (27 Parties, such as the U.K.), in a policy document (56 Parties, such as the U.S.), or in political pledge (18 Parties).21 
  • Fossil fuel subsidies are a roadblock on the way to a clean energy system.22 Global fossil fuel subsidies surged to a record $7T in 2022, with $760B from the U.S.23 The U.S. Congress allocated over $5.7B in tax relief to the oil and gas industries for fiscal years 2020-2024.24
  • Carbon cap-and-trade policies would work in favor of renewable energy by valuing carbon, and increasing the cost of fossil fuel energy generation.25
  • The growth of renewable energy was spurred by a 2.5¢/kWh federal production tax credit (PTC) and the 30% energy investment tax credit (ITC).26
  • The Inflation Reduction Act (IRA) extends, through 2025 to 2032, the ITC of 30% and PTC of 2.75 ¢/kWh (2023 value) for eligible renewable energy systems. After 2025, the Clean Electricity Production Tax Credit and the Clean Electricity Investment Tax Credit will replace the PTC/ITC, with bonus credits for siting projects in energy poverty and low-income communities or on Native lands.27
  • Through 2032, federal tax credits cut energy-efficiency upgrade costs by up to 30% or $3,200 annually, as well as providing a 30% tax credit for clean energy equipment, such as rooftop solar, geothermal heat pumps, and energy storage.28 
  • In tax year 2023, taxpayers received more than $6B residential clean energy credits, and over $2B energy efficiency home improvement credits.29
  • Roughly half of renewable electricity growth in the U.S. since 2000 can be attributed to state Renewable Portfolio Standards (RPS) that require a percentage of electricity be derived from renewable sources.31 Thirty-five states, the District of Columbia, and four U.S. territories had renewable portfolio standards or goals in place as of November 2023.30
  • Clean Energy Standards (CES) that mandate certain levels of carbon-free generation can include some non-renewables such as nuclear energy.32 Eighteen states have set standards or goals as of November 2023 to reach 100% clean energy.30
  • State governments also provide policies and incentives for renewable energy, such as rebate, grant, and loan programs; building energy standards, energy efficiency standards, and solar/wind permitting; corporate tax deduction, property tax incentive, personal tax credit, sales tax exemption; feed-in tariff, net metering, and property assessed clean energy programs.33 See the “Renewable Energy Factsheet” for more.
  • A federal tax credit of up to $7,500 is available for new electric, plug-in hybrid, and fuel cell electric vehicles  purchased in 2023 or after.34 See the “Personal Transportation Factsheet” for more transportation policies.
States with Renewable / Clean Energy Standards or Goals31
Cite As

Center for Sustainable Systems, University of Michigan. 2024. "U.S. Energy System Factsheet." Pub. No. CSS03-11.

1. U.S. Energy Information Administration (EIA) (2024) State Energy Data System (SEDS) 1970-2022: Prices and Expenditures. https://www.eia.gov/state/seds/seds-data-complete.php?sid=US#PricesExpenditures

2. U.S. EIA (2020) "Electricity Explained - Electricity and the Environment." https://www.eia.gov/energyexplained/electricity/electricity-and-the-environment.php

3. U.S. EIA (2024) Monthly Energy Review June 2024. https://www.eia.gov/totalenergy/data/monthly/

4. U.S. Central Intelligence Agency (2024) The World Factbook. https://www.cia.gov/the-world-factbook/countries/

5. U.S. EIA (2024) “International Energy Data", total energy consumption. https://www.eia.gov/international/data/world

6. International Risk Governance Council (2012) The Rebound Effect: Implications of Consumer Behaviour for Robust Energy Policies. http://www.irgc.org/issues/energy-efficiency/

7. U.S. EIA (2024) Total energy flow 2023. https://www.eia.gov/totalenergy/data/flow-graphs/total-energy.php 

8. U.S. EIA (2023) Annual Energy Outlook 20232. https://www.eia.gov/outlooks/aeo/tables_ref.php

9. Intergovernmental Panel on Climate Change (IPCC) (2023) Synthesis Report of the IPCC Sixth Assessment Report (AR6) Summary for Policy Makers. https://www.ipcc.ch/report/ar6/syr/

10. U.S. EIA (2024) "How much petroleum does the US import and export-FAQ.". https://www.eia.gov/tools/faqs/faq.php?id=727&t=6

11. Alvarez, R. et al. (2018) Assessment of methane emissions from the U.S. oil and gas supply chain. Science, 361(6398): 186-188. https://science.sciencemag.org/content/361/6398/186

12. Intergovernmental Panel on Climate Change (2021) Climate Change 2021: The Physical Science Basis. https://www.ipcc.ch/report/ar6/wg1/

13. U.S. EPA (2024) Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2022. https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022

14. Friedlingstein et al. (2023) Global Carbon Budget 2023. Earth System Science Data. https://globalcarbonatlas.org/emissions/carbon-emissions/

15. U.S. EIA (2020) "Renewable Energy and the Environment." https://www.eia.gov/energyexplained/index.cfm?page=nuclear_environment

16. American Council for an Energy-Efficient Economy (2019) Halfway There: Energy Efficiency Can Cut Energy Use and Greenhouse Gas Emissions in Half by 2050. https://www.aceee.org/research-report/u1907

17. U.S. EIA (2024) Preliminary Monthly Electric Generator Inventory April 2024. https://www.eia.gov/electricity/data/eia860m/

18. U.S. DOE (2015) Wind Vision Report: Report Highlights. http://www.energy.gov/windvision

19. U.S. DOE (2012) SunShot Vision Study. https://www1.eere.energy.gov/solar/pdfs/47927.pdf

20. COP28, UAE (2023) GLOBAL RENEWABLES AND ENERGY EFFICIENCY PLEDGE. https://www.cop28.com/en/global-renewables-and-energy-efficiency-pledge

21. Climate Watch (2024) Net Zero Tracker. https://www.climatewatchdata.org/net-zero-tracker

22. IEA (2023) Fossil Fuel Subsidies in Clean Energy Transitions: Time for a New Approach? https://www.iea.org/reports/fossil-fuel-subsidies-in-clean-energy-transitions-time-for-a-new-approach

23. IMF (2023) IMF Fossil Fuel Subsidies Data: 2023 Update. https://www.elibrary.imf.org/view/journals/001/2023/169/article-A001-en.xml

24. Joint Committee on Taxation (2020) Estimates of Fed. Tax Expenditures for Fiscal Years 2020-2024. https://www.jct.gov/publications/2020/jcx-23-20/

25. Bird, L., et al. (2008) "Implications of carbon cap-and-trade for U.S. voluntary renewable energy markets." Energy Policy, 36(6): 2063-2073. http://www.sciencedirect.com/science/article/pii/S0301421508000761

26. Congressional Research Service (2020) The Renewable Electricity Production Tax Credit: In Brief. https://fas.org/sgp/crs/misc/R43453.pdf

27. EPA (2023) "Summary of Inflation Reduction Act Provisions Related to Renewable energy.". https://www.epa.gov/green-power-markets/summary-inflation-reduction-act-provisions-related-renewable-energy

28. US Energy Star (2024) Federal Tax Credits for Energy Efficiency. https://www.energystar.gov/about/federal-tax-credits#homeowners

29. U.S. DOT & IRS (2024) Department of Treasury and IRS release Inflation Reduction Act clean energy statistics. https://www.irs.gov/newsroom/department-of-treasury-and-irs-release-inflation-reduction-act-clean-energy-statistics

30. DSIRE (2023) Renewable and Clean Energy Standards. https://ncsolarcen-prod.s3.amazonaws.com/wp-content/uploads/2023/12/RPS-CES-Dec2023-1.pdf

31. Barbose, G. (2023) U.S. Renewables Portfolio Standards 2023 Status Update. PowerPoint Presentation (live-etabiblio.pantheonsite.io)

32. Congressional Research Service (2020) Electricity Portfolio Standards: Background, Design Elements, and Policy Considerations. https://fas.org/sgp/crs/misc/R45913.pdf

33. DSIRE (2024) Glossary. https://www.dsireusa.org/support/glossary/

34. U.S. DOE, EERE (2023) “Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After.”. https://www.fueleconomy.gov/feg/taxevb.shtml

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