Fuel Oil News July 2025 | Page 8

� EIA: HOW HAS US ENERGY USE CHANGED SINCE 1776?
In 2024, the United States consumed about 94 quadrillion British thermal units( quads) of energy, a 1 % increase from 2023, according to our Monthly Energy Review. Fossil fuels— petroleum, natural gas, and coal— accounted for 82 % of total U. S. energy consumption in 2024. Nonfossil fuel energy— from renewables and nuclear energy— accounted for the other 18 %. Petroleum remained the most-consumed fuel in the United States, as it has been for the past 75 years, and nuclear energy consumption exceeded coal consumption for the first time ever.
When the Declaration of Independence was signed in 1776, wood, a renewable energy source, was the largest source of energy in the United States. Used for heating, cooking, and lighting, wood remained the largest U. S. energy source until the late 1800s, when coal consumption became more common. Wood energy is still consumed, mainly by industrial lumber and paper plants that burn excess wood waste to generate electricity.
Coal was the largest source of U. S. energy for about 65 years, from 1885 until 1950. Early uses of coal included many purposes that are no longer common, such as in stoves for home heating and in engines for trains and ships. Since the 1960s, nearly all coal consumed in the United States has been for electricity generation.
Petroleum has been the most-consumed source of energy in the United States since 1950. Petroleum products such as motor gasoline, diesel, jet fuel, and propane are commonly used across all sectors of the U. S. economy, from transportation to industrial chemicals and plastics.
Natural gas is the second-largest source of U. S. energy consumption, as it has been most years since it surpassed coal in 1958. Natural gas was once considered a waste byproduct of crude oil production but now has become a common energy source for heating and electricity generation.
Early use of water to power grist, lumber, and other milling operations is not well quantified and not included in our data, but such mills were common throughout early U. S. history. The first industrial use of hydropower to generate electricity in the United States was to power lamps at a chair factory in Grand Rapids, Michigan, in 1880. The world’ s first hydroelectric power plant to sell electricity to the public opened on the Fox River near Appleton, Wisconsin, in 1882.
U. S. energy consumption( 1776 – 2024) quadrillion British thermal units
45
40 35 30 25 20 15 10 5 around 1885: coal surpasses renewables( back then: only wood)
1950: petroleum surpasses coal
0
1776
1850
1900
1950
2024
energy source( 2024 percentage of total)
petroleum( 38 %) natural gas( 36 %)
renewables( 9 %) nuclear( 9 %) coal( 8 %)
Other forms of renewable energy did not become significant contributors to U. S. energy production until more recently. In 2016, biofuels— including the fuel ethanol mixed in motor gasoline— became the most-consumed U. S. renewable energy source.
Electricity generation from some zero-carbon sources, such as wind and solar, has increased rapidly in recent years, while generation from others, such as hydropower and nuclear, has remained relatively flat. In 2022, U. S. energy consumption from renewable sources surpassed nuclear energy for the first time since 1984, and in 2023, renewables surpassed coal for the first time since around the early 1880s. The United States now consumes more energy from wind and solar sources individually than from hydropower.
To compare different forms of energy, we convert to common units of heat, called British thermal units. Data source: U. S. Energy Information Administration, Monthly Energy Review
Data values: Renewable Energy Consumption by Source and Estimated primary energy consumption in the United States, selected years, 1635 – 1945 Principal contributor: Mickey Francis
� EIA SHORT-TERM ENERGY OUTLOOK
Forecast overview Trade policy assumptions. The U. S. macroeconomic outlook we use in the Short-Term Energy Outlook( STEO) is based on S & P Global’ s macroeconomic model. S & P Global’ s most recent model reflects the tariffs announced in April and includes the 90-day temporary suspension of tariffs granted to certain countries. S & P Global finalized its most recent model before the U. S. Court of International Trade ruled on May 28 to temporarily halt the implementation of all reciprocal tariffs. As a result, our macroeconomic forecast assumes lower tariffs on China’ s products compared with last month’ s STEO and 10 % tariffs on countries subject to the 90-day temporary suspension. These differences in tariff rates likely have offsetting effects on the macroeconomic forecast.
Ethane exports. On June 4, Enterprise Products Partners announced that the U. S. Department of Commerce’ s Bureau of Industry and Security( BIS) issued a notice to deny applications for ethane export licenses to China. If implemented, these denials are likely to significantly reduce U. S. ethane exports as nearly half of U. S. ethane exports go to China. All of China’ s ethane imports come from the United States. As a result, we have reduced our forecast of U. S. ethane exports by 24 % to 410,000 barrels per day( b / d) in 2025 and by 51 % to 310,000 b / d in 2026 compared with last month’ s STEO. Additionally, we reduced our forecast for U. S. ethane production for both 2025 and 2026 because we expect that without an outlet for exports, ethane will not be separated from the natural gas stream.
U. S. crude oil production. We forecast U. S. crude oil production will decline from an all-time high of 13.5 million barrels per day( b / d) in the second quarter of 2025( 2Q25) to about 13.3 mil-
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