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Friday, January 3, 2025

U.S. Energy Production Continues to Exceed Consumption, A Milestone First Hit in 2019: Growth of Domestic Oil and Natural Gas Production Due to Fracking Allows Coal Use to Drop


     Since 2019 the U.S. has produced more energy than it consumes. It has done this while cutting energy production from coal by half since coal production peaked in 2008. How were we able to do this? Largely due to fracking. Energy efficiency and growth in wind and solar helped but increases in domestic oil and gas output are by far the main factor. The 2019 milestone was important since the U.S. had last produced more energy than it consumed way back in the 1950s. spread between production and consumption has grown to a record high in 2023. EIA explains its methodology and the results below:

To compare different types of energy reported in different types of physical units (such as barrels, cubic feet, tons, and kilowatthours), we convert sources of energy to common units of heat called British thermal units (Btu). Noncombustible renewable sources such as hydroelectric and solar energy are converted to Btu using the constant conversion of 3,412 Btu per kilowatthour.”

The increase in total U.S. energy production was driven largely by growth in the production of natural gas and crude oil in 2023. Dry natural gas production grew 4% to a record 39 quads in 2023, growing 58% since 2013. Crude oil production grew 9% from 2022 and reached a record of 27 quads in 2023, a 69% increase since 2013. Production of natural gas plant liquids, a byproduct of natural gas production, increased by 8% from 2022 to 8 quads in 2023. Natural gas plant liquids production has increased by 143% since 2013.”

Energy production from renewable sources increased 1% from 2022 to a record 8 quads in 2023, a 28% increase since 2013. Solar energy production grew by 15% last year, reaching almost 1 quad, and biomass energy production grew nearly 2% to more than 5 quads. Wind production fell last year by 2% to about 1.5 quads, with wind speeds slower last year.”


The graphs below clearly show the positive results of domestic oil and gas production for replacing coal, thereby lowering carbon emissions, air pollution, and potential water pollution very significantly.

 














     Some other interesting observations from these graphs reveal some interesting facts. Firstly, natural gas plant liquids such as ethane, propane, butane, and isobutane produce as much energy as all renewables combined. Secondly, and this is very important to note, biomass in the form of wood, waste, and biofuels combustion resulted in 60% of the total renewables production (see 2nd graph). Solar consumption represents just 11% of total renewables consumption and wind consumption represents just 17% of total renewables consumption. Thus, 27% of total renewables consumption came from wind and solar. We consumed double the amount of energy from burning wood alone than we did from solar and about the same amount of energy from wood and waste combined as from wind and solar combined. Clearly, the energy transition remains very challenging and unrealistic in the near term.

 


Data Source: EIA




Data Source: EIA



     Wind generation actually declined in 2023 for the first time since the 1990s. One reason was slower wind speeds. Wind capacity factors have increased modestly since 2010 from about 30% to about 34% but have remained pretty flat since 2013.

 

 


 






References:

 

U.S. energy production exceeded consumption by record amount in 2023. Energy Information Administration. Today in Energy. June 26, 2024 (Re-published December 31, 2024). U.S. energy production exceeded consumption by record amount in 2023 - U.S. Energy Information Administration (EIA)

Table 10.1 Renewable Energy Production and Consumption by Source. EIA. Microsoft Word - MER_S10

Wind generation declined in 2023 for the first time since the 1990s. EIA. April 30, 2024. Wind generation declined in 2023 for the first time since the 1990s - U.S. Energy Information Administration (EIA)

Range Resources: Company Presentation. October 2024. PowerPoint Presentation

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