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 2014, the U.S. spent $1.4 trillion on energy, or 8.0% of Gross Domestic Product (GDP).1,2 When spread over the population, annual costs were $4,374 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 Values

Patterns of Use

Demand

  • With less than 5% of the world’s population, the U.S. consumes 18% of the world’s energy and accounts for 16% of world GDP. To compare, the European Union has 7% of the world’s population, uses 16% of its energy, and accounts for 17% of its GDP, while China has 19% of the world’s population, consumes 20% of its energy, and accounts for 17% of its GDP.9,10
  • Each day, U.S. per capita energy consumption includes 2.5 gallons of oil, 13.7 pounds of coal, and 234 cubic feet of natural gas.8,9
  • Residential daily consumption of electricity is 11.9 kilowatt-hours (kWh) per person.8,9
  • In 2015, total U.S. energy consumption was 3% below 2007 peak levels, similar to total energy consumption in 2002.8

U.S. Energy Consumption by Sector, 20158

U.S. Energy Consumption by Sector, 2015

Supply

  • By current estimates, 80% of U.S. energy will come from fossil fuels in 2040.6
  • Renewable energy consumption is projected to increase annually at an average rate of 1.3% between 2013 and 2040, compared to 0.3% growth in total energy use. Liquids from biomass and ethanol for E85 are projected to grow the fastest. However, at these rates, renewables would only provide 9.5% of U.S. energy consumption in 2040, which is less than today’s 9.9% renewable energy consumption.6,8
  • U.S. net imports met 24% of domestic oil demand in 2015.8 This figure is projected to drop to 17% in 2040.6 Canada, Saudi Arabia, and Venezuela are the three largest foreign suppliers of U.S. oil.11
  • The Persian Gulf region accounted for 16% of U.S. petroleum imports in 2015 and contains 48% of the world’s oil reserves.11,12 Roughly 16% of all reserves lie in Saudi Arabia alone.12 OPEC controlled 31% of the oil imported by the U.S. in 2015.8
  • 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 2044.13

U.S. Energy Consumption by Source, 20158

U.S. Energy Consumption by Source, 2015

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 7% from 1990 to 2014. 76% of total U.S. GHG emissions were energy-related CO2 emissions in 2014.14
  • Other energy sources also have environmental implications. For example, issues associated with nuclear power generation include radioactive waste and accidental leakage; 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.15

U.S. GHG Emissions, 201414

(Million Metric Tons CO2 Equivalent)

 

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 12% in 2015, expanding to 74 GW.17 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.18
  • Solar photovoltaic modules covering 0.6% of the land in the U.S. could supply all of the nation’s electricity.19

Encourage Supportive Public Policy

  • The U.S. currently produces 16% of the world’s energy-related CO2 emissions, which are expected to increase by 3% between 2013 and 2040.6,20 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 2050.21 The Act was not brought to a vote in the Senate and did not become law.22 In comparison, the United Kingdom established a goal of reducing CO2 emissions 80% below their 1990 level by 2050.23
  • A joint rule issued by the U.S. EPA and National Highway Traffic Safety Administration (NHTSA) in 2010 set new auto manufacturing standards for model years 2012 - 2016, raising corporate average fuel economy (CAFE) standards to 34.1 miles per gallon for new light-duty vehicles in 2016. This rule is projected to save 1.8 billion gallons of fuel, approximately $200 billion, and cut CO2 emissions by 960 million metric tons.24
  • An additional rule, issued by the U.S. EPA and NHTSA in 2012, raises CAFE standards to 49.7 miles per gallon in 2025, which is projected to save 4 billion gallons of fuel, $300-400 billion, and cut CO2 emissions by 2 billion metric tons.25 In comparison, if the Arctic National Wildlife Refuge (ANWR) were opened to oil drilling, production would peak at 284.7 million barrels of oil per year in 2027.26
  • 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, 2019.27 Thirty-seven states, the District of Columbia, and four U.S. territories had renewable portfolio standards or goals in place as of April 2016.28
  • A $2,500-$7,500 federal tax credit is available for electric and plug-in hybrid electric vehicles purchased after January 1, 2010.29
  • Residential consumers can receive tax credits for up to 30% of purchase and installation costs for renewable energy additions to new and existing houses. Eligible renewable technologies include geothermal heat pumps, solar water heaters, solar panels, small wind turbines, and residential fuel cells.30

States with Renewable Energy Portfolio Standards28

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. Department of Energy (DOE), Energy Information Administration (EIA) (2016) State Energy Data System (SEDS) - Total End Use Energy Expenditure Estimates 2014.
  2. U.S. Bureau of Economic Analysis (BEA) (2016) “U.S. Gross Domestic Product.”
  3. U.S. Census Bureau (2016) “World Population Clock.”
  4. U.S. Environmental Protection Agency (EPA) (2012) “How does electricity affect the environment?”
  5. International Risk Governance Council (2012) The Rebound Effect: Implications of Consumer Behaviour for Robust Energy Policies.
  6. U.S. EIA (2015) Annual Energy Outlook 2015.
  7. U.S. EIA (2015) Monthly Energy Review May 2015.
  8. U.S. EIA (2016) Monthly Energy Review May 2016.
  9. U.S. CIA (2016) “The World Factbook.”
  10. U.S. EIA (2015) “International Energy Statistics - Total Primary Energy Consumption.”
  11. U.S. EIA (2016) “Petroleum and Other Liquids: U.S. Imports by Country of Origin.”
  12. U.S. EIA (2016) International Energy Statistics.
  13. U.S. EIA and U.S. DOE (2005) “When Will World Oil Production Peak?”
  14. U.S. EPA (2016) Inventory of US Greenhouse Gas Emissions and Sinks, 1990-2014.
  15. U.S. EPA (2013) “Nuclear Energy,” “Hydroelectricity,” and “Non-Hydroelectric Renewable Energy.”
  16. National Action Plan for Energy Efficiency (2008) National Action Plan for Energy Efficiency for 2025: A Framework for Change.
  17. American Wind Energy Association (2016) U.S. Wind Industry First Quarter 2016 Market Report.
  18. U.S. DOE (2015) Wind Vision Report: Report Highlights.
  19. U.S. DOE, National Renewable Energy Laboratory (2007) “The Regional Per-Capita Solar Electric Footprint for the United States.”
  20. EIA (2016) International Energy Outlook 2016.
  21. U.S. House of Representatives Committee on Energy and Commerce (2009) American Clean Energy and Security Act 2009 Draft.
  22. The Library of Congress (2011) Bill Summary and Status 111th Congress, S.1733 (HR 2454).
  23. Department for Environment Food and Rural Affairs (U.K.) (2009) “Climate Change Act 2008.”
  24. National Highway Traffic Safety Administration (NHTSA) and U.S. EPA (2010) “Light-Duty Vehicle Greenhouse Gas Emission Standards and Corporate Average Fuel Economy Standards, Final Rule.” Federal Register, 75:88.
  25. Federal Register (2012) Rules and Regulations, Vol. 77, No. 199, Monday, October 15, 2012.
  26. U.S. EIA (2008) Analysis of Crude Oil Production in the Arctic National Wildlife Refuge.
  27. DSIRE (2016) “Renewable Electricity Production Tax Credit (PTC).”
  28. U.S. EPA (2016) “State Funding Resources and Renewable Portfolio Standards (RPS).”
  29. U.S. DOE (2012) “Fuel Efficiency Vehicle: Tax Incentive Information Center.”
  30. Energy Star (2012) “Federal Tax Credits for Consumer Energy Efficiency.”
Cite as: 
Center for Sustainable Systems, University of Michigan. 2016. "U.S. Energy System Factsheet." Pub. No. CSS03-11.