Energy in The US
It's hard to believe with the focus on petroleum based fuel these days, that there are other sources of energy that the United States is even more dependent on.
- The United States of America is the world's largest energy producer, consumer, and net importer. It also ranks eleventh worldwide in reserves of oil, sixth in natural gas, and first in coal.
- U.S. oil production has been declining for years. In 2005, Hurricanes Katrina and Rita slashed oil output from the Gulf of Mexico.
- The U.S. is the world’s largest consumer and second-largest producer of natural gas.
- The U.S. has the world’s largest coal reserves, with the Western U.S. accounting for 55 percent of current U.S. coal production.
- U.S. electricity demand is increasing, as are prices.
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Regular-grade gasoline is expected to average $3.78 per gallon in 2008, or 97 cents above the 2007 average price. The U.S. average regular gasoline price, currently over $4 per gallon, is projected to peak at $4.15 per gallon in August. Retail diesel fuel prices are projected to average $4.32 per gallon in both 2008 and 2009, an increase of $1.44 per gallon over the 2007 average.
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World oil consumption is projected to grow by 1 million barrels per day (bbl/d) in 2008. U.S. consumption of liquid fuels and other petroleum is expected to decline by about 290,000 bbl/d in 2008 because of higher petroleum product prices and slower economic growth. Adjusting for increased ethanol use, U.S. petroleum consumption is projected to fall by 440,000 bbl/d in 2008.
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Based on the current Atlantic hurricane season outlook from the National Oceanic and Atmospheric Administration (NOAA), EIA estimates expected production shut-ins on the U.S. Gulf Coast during the upcoming hurricane season (June through November) of about 11 million barrels for crude oil and 78 billion cubic feet (Bcf) for natural gas (The 2008 Outlook for Hurricane Production Outages in the Gulf of Mexico). Actual shut-ins may differ significantly from this estimate depending on the number, track, and strength of hurricanes as the season progresses.
Consumption. Three of the five warmest summers since 1975 in terms of cooling degree-days occurred in 2005, 2006, and 2007 (U.S. Summer Cooling Degree Days). NOAA projects temperatures this summer will fall back to near-normal levels, thus limiting annual growth in electricity consumption to 0.6 percent for 2008. Consumption is expected to grow at a higher rate of 1.6 percent in 2009 (U.S. Total Electricity Consumption).
Prices. The cost of most fuels used in generating electricity has risen significantly since the beginning of the year. How soon these higher generation costs are passed through to consumers depends on a number of factors such as the terms of utilities’ fuel purchase contracts and the regulatory structure within a given State. Average U.S. residential electricity prices are expected to increase by about 3.7 percent in 2008 and by 3.6 percent in 2009 (U.S. Residential Electricity Prices).
Consumption. Electric-power-sector coal consumption grew by 1.9 percent in 2007. Slow growth in total electricity consumption is expected to limit growth in electric-power-sector coal consumption to 0.9 percent in 2008. Projected increases from other generation sources (nuclear, natural gas, hydroelectric, and wind) in 2009 will continue to dampen electric-power-sector coal consumption growth, projected to be 0.6 percent in 2009 (U.S. Coal Consumption Growth).
Production and Inventories. U.S. coal production (U.S. Coal Production) is estimated to have fallen by 1.5 percent in 2007. Growth in domestic consumption and exports will contribute to a 2.9-percent increase in coal production in 2008. Secondary (consumer-held) coal stocks are estimated to have grown by 5.5 percent in 2007 to 159 million short tons. Coal consumers are expected to continue to build stocks in 2008, growing by an average of 6.2 percent. Primary stocks, held by coal producers/distributors, are projected to decline by more than 6 million short tons between the end of 2007 and the end of 2009.
Top World Oil Producers, 2006 (thousand barrels per day) | |||||
Rank | Country | Production | |||
1 | 10,665 | ||||
2 | 9,677 | ||||
3 | 8,330 | ||||
4 | 4,148 | ||||
5 | 3,845 | ||||
6 | 3,707 | ||||
7 | 3,288 | ||||
8 | 2,945 | ||||
9 | 2,803 | ||||
10 | 2,786 | ||||
11 | 2,675 | ||||
12 | 2,443 | ||||
13 | 2,166 | ||||
14 | 2,122 | ||||
15 | 2,008 | ||||
eia.gov
