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U.S. Energy in the 21 Century:A Primer
March 16, 2021
CongressionalResearchService
https://crsreports.congress.gov
R46723
SUMMARY
R46723
U.S. Energy in the 21st Century: A Primer
March 16,2021
Since the start ofthe 21st century,the U.S.energy systemhas changedtremendously. Technologicaladvances in energy production have driven changesin energyconsumption,and the United States hasmovedfrombeing a net importerofmost forms ofenergy to a declining importer—and a net exporterin 2019. The United Statesremains thesecondlargest producerand consumerofenergyin the world,behindChina.
Melissa N. Diaz, Coordinator
Analyst in Energy Policy
Overall energy consumptionin the United States has held relatively steady since2000, while the mix ofenergy sourceshaschanged.Between2000 and 2019, consumption ofnaturalgas and renewable energy increased,while oiland nuclearpowerwere relatively flat and coaldecreased.In the same period, productionofoil,naturalgas, andrenewables increased,while nuclearpowerwas relatively flat and coaldecreased.Overall energy productionincreased by42% overthe same period.
Increases in the productionofoiland naturalgas are duein part to technologicalimprovementsin hydraulic fracturingand horizontaldrilling that havefacilitatedaccessto resourcesin unconventionalformations(e.g.,shale). U.S.oil production (including naturalgasliquidsandcrudeoil)and naturalgas productionhit recordhighsin 2019. The United States is the largest producerofnaturalgas,a net exporter,andthe largestconsumer.
Oil, naturalgas,andotherliquid fuels dependon a networkofoverthreemillion miles ofpipeline infrastructure.Increases in fuel production led to a realignment ofthe U.S.pipeline network,which expandedby an additional58,000 miles ofpipeline between 2004and 2019, as well as the conversion,reversal,and expansionofexisting pipelines. The trajectory offuture pipeline development is uncertain dueto ongoingpermit challengesandlitigationforcurrent pipeline expansion efforts.
Coal, used primarily forelectricity generation,supplied 23% ofelectricity generationin 2019, while overallconsumption declined by 48% since 2007,in the face ofincreasingcompetitionfromnaturalgasandrenewables. Nuclearpowerfaces significant challengesasa future source ofelectric powergenerationwith more facilities going offline thancoming online since 2000.
The electric powerindustry facesuncertaintyoverhowto addresstransmission andreliability within an environment ofaging infrastructure,potentialcybersecurity threats,and continuedinterest in renewable energyand otherlowcarbonsources of electricity.Reliability and electricity pricesare complicated by environmentalregulations,the rising availability ofnatural gas forelectricity generation,and the intermittent nature ofrenewables.
Renewable energy consumptionnearly doubledbetween2000and 2019, primarily due to increased useofwind and solar for electric powergenerationandbiofuels fortransportation.Newelectric powercapacity additionsforwind and solarhave exceeded those forcoaland naturalgas in fourofthe last five years.Small-scale solar,which is ofparticularinterest because it rarely requires newtransmissioninfrastructure,can be installedin a variety ofgeographies,andmay financially benefit individuals and communities.Renewablesalsoincludehydropower,geothermalenergy,and othertypesofbiomass.Each energy product(e.g.,heat,electricity,andliquid fuels)derived fromthese sourceshasa uniquemarket and policy considerations.
Adoptionofenergy-efficiencytechnologiesin buildings,transportation,andindustry may supportpolicy objectives toward energy security andreducing energyconsumption (e.g.,consumers saving money,avoiding greenhouse gasemissions). Policy optionsinclude mandatory efficiency standardsandprogramsencouragingadoptionofexisting technologies,among others. Resulting changesin energyconsumptionmay also be impacted bychangesin demandforenergyservices.
While a majority ofenergy production occurs onnonfederallands,some productionoccurson federallands. In 2019, energy productionon federallandsincreased foroiland naturalgas,with agenciesmanagingnumerousleasesforrenewable energy production(e.g.,solarandwind).
Congresshasbeeninterestedin energy productionandconsumptionfordecades.Current topicsof concern to Congress include reliability and resilience,infrastructure,efficiency,exports,imports,prices,energyindependence,security,and geopolitics, as wellas environmentalandclimate effects.Legislationhasbeen introducedin bothhouses ofCongress to address theseissuesand others.
Congressional Research Service
U.S. Energy in the 21st Century: A Primer
Contents
Introduction: Continued Growth........................................................................................1 Issues for Congress .........................................................................................................1
Policy Goals .............................................................................................................1 COVID-19 ...............................................................................................................2 Legislation ...............................................................................................................2
U.S. Energy Profile .........................................................................................................3
Crude Oil and Petroleum Products: Increased Production and Exports.....................................5
Crude Oil and Natural Gas Liquids Production...............................................................6 Oil Transportation and Storage....................................................................................7 Oil Refining..............................................................................................................7 Petroleum Trade........................................................................................................7 Oil and Petroleum Product Prices.................................................................................8
Natural Gas: The United States Is a Global Player................................................................9
U.S. Supply ............................................................................................................ 10 U.S. Consumption ................................................................................................... 10 U.S. Exports........................................................................................................... 11 Natural Gas Liquids ................................................................................................. 11
Pipelines: The Backbone of U.S. Oil and Gas Supply ......................................................... 12
Pipeline Network Expansion from the Shale Boom ....................................................... 14 Challenges to Pipeline Network Expansion.................................................................. 15
Coal: Still Declining ...................................................................................................... 15
Coal Reserves and Production ................................................................................... 16 Coal Consumption................................................................................................... 16 Coal Exports........................................................................................................... 17 U.S. Coal-Producing Industry.................................................................................... 19
The Electric Power Sector: In Transition........................................................................... 20
Supply and Demand................................................................................................. 20 U.S. Consumption ................................................................................................... 22
Nuclear Power: An Industry Facing Stress ........................................................................ 22 Renewable Energy: Continued Growth............................................................................. 25
Renewable Transportation Fuels ................................................................................ 27 Renewable Electricity .............................................................................................. 28
Non-Hydro Renewables ...................................................................................... 28 Small-Scale Solar............................................................................................... 30
Energy Efficiency: An Untapped Resource........................................................................ 31
Efficiency in Buildings............................................................................................. 32 Efficiency in Transportation ...................................................................................... 33 Efficiency in Industry and Manufacturing.................................................................... 34
Energy on Federal Lands: ADeclining Share..................................................................... 36
Oil and Natural Gas............................................................................................ 38 Coal ................................................................................................................. 39 Renewable Sources............................................................................................. 40
Congressional Research Service
U.S. Energy in the 21st Century: A Primer
Figures
Figure 1. U.S. Primary Energy Consumption and Production by Fuel 2000-2019......................4 Figure 2. U.S. Crude Oil Production, NGL Production, and WTI Spot Price.............................6 Figure 3. U.S. Petroleum Imports, Exports, andTrade Balance...............................................8
Figure 4. Monthly U.S. Natural Gas Prices, 2000-2020.........................................................9
Figure 5. U.S. Natural Gas Supply and Demand, 2000-2019................................................ 10 Figure 6. U.S. Natural Gas Consumption by Sector, 2019.................................................... 11 Figure 7. U.S. Natural Gas Transmission and Hazardous Liquid Pipelines.............................. 12 Figure 8. Annual U.S. Natural Gas Transmission Capacity Expansion and
New Construction....................................................................................................... 14
Figure 9. U.S. Net Electricity Generation by Fuel, 2000-2019.............................................. 21 Figure 10. U.S. Operating Commercial Nuclear Power Reactors........................................... 25 Figure 11. Renewable Energy Consumption in the United States, 2000-2019.......................... 26 Figure 12. Non-Hydro Renewable Electricity Generation, 2000-2019................................... 29 Figure 13. Electric Power Capacity Additions, 2000-2019................................................... 29 Figure 14. U.S. Total Energy Consumption by Sector 2000-2019.......................................... 31 Figure 15. Estimated U.S. Delivered Energy Consumption by End Use, 2019......................... 33 Figure 16. U.S. Transportation Sector Energy Use by Mode in 2019 ..................................... 34 Figure 17. U.S. Industrial Sector Energy Consumption in 2019............................................ 35
Figure C-1. Estimated U.S. Energy Consumption in 2019: 100.2 Quads ................................ 46
Tables
Table 1. U.S. Hazardous Liquid and Natural Gas Pipeline Mileage, 2019............................... 13 Table 2. U.S. Coal Production, Consumption, and Exports, 2000-2019.................................. 17 Table 3. Leading U.S. Coal Producers and Percentage of U.S. Coal Production for 2000,
2010, and 2019 .......................................................................................................... 19
Table 4. U.S. Renewable Energy Consumption by Sector and Source, 2019 ........................... 26
Table B-1. Selected Energy Related Laws......................................................................... 44
Appendixes
Appendix A. Selected U.S. Government Entities and Their Energy-Related Roles................... 42
Appendix B. Selected Energy Laws ................................................................................. 44 Appendix C. 2019 U.S. Energy Consumption.................................................................... 46 Appendix D. List of Abbreviations................................................................................... 47
Congressional Research Service
U.S. Energy in the 21st Century: A Primer
Contacts
Author Information ....................................................................................................... 48
Congressional Research Service
U.S. Energy in the 21st Century: A Primer
Introduction: Continued Growth
The United States has been an integral part of the global energy sector for many decades. It is a global leader in energy production, consumption, and technology, and its energy market is highly sophisticated. Its energy prices, for the most part, are determined in the marketplace and rise or fall with changes in supply and demand. The United States is a major producer of all forms of energy—oil, natural gas,1 coal, nuclear power, and renewable energy.
Since the beginning of the 21st century, the U.S. energy sector has transformed from a situation of declining production, especially of oil and natural gas, to one in which the United States is a growing producer. Exports of energy are rising while imports are falling. Prices, technology, and regulations have prompted changes in the energy mix.
This report provides an overview of U.S. energy issues, and it serves as an initial resource document for related information, data, and CRS contacts. The report is organized around the major fuels and energy sources used in the United States. It also highlights the role of the federal government, particularly the use of federal lands in energy production. It does not focus on security, research and development, or environmental issues, although those subjects are also critical to the U.S. energy sector.
Issues for Congress
Policy Goals
Energy policy is a perennial concern for Members of Congress. Energy supply and consumption are key drivers of economic activity. There is ongoing debate over U.S. energy policy given the wide range of possible energy sources; their availability in terms of domestic vs. foreign resources, the economic costs and benefits of developing those resources; and the effects (economic, environmental, social, etc.) of their use. Additionally, environmental policy also has an effect on the energy sector, especially fuel use.
The United States has access to a wide range of energy sources, including fossil fuels (e.g., coal, petroleum, and natural gas), nuclear, and renewables (e.g., wind, solar, hydropower, geothermal, biomass). In addition, increases in energy efficiency have allowed the United States to consume less energy over time, extending existing supplies. Different U.S. sectors employ different sources. For example, nuclear energy is used exclusively in electric power generation, along with other sources, while the transportation sector is largely dependent on petroleum in the form of gasoline, diesel fuel, and jet fuel. However, the energy profile has changed dramatically in recent years. Coal had been the predominant fuel for electric power generation for decades, but between 2000 and 2019, natural gas use in power generation grew by 163%. Over the same time, nonhydroelectric renewable energy grew by 495%.2 There is a growing market for electric passenger vehicles, although they do not yet represent a significant share of transportation energy use.
1 Throughout this report,natural gas figures are reportedfor dry production, with the exception of production on federal lands, which is reportedin gross withdrawals. Gross withdrawals include all gases withdrawn from gas, oil, or coalbed wells, including natural gas, natural gas liquids, and nonhydrocarbon gases but excluding lease condensate. Dry production refers more narrowly to natural gas production with gas liquids and nonhydrocarbon gases removed. 2 U.S. Energy Information Administration (EIA), Electric Power Annual 2010, Table 2.1.A, November 2011, andEIA
Electric Power Monthly, Table 1.1, July 2020.
- Congressional Research Service
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U.S. Energy in the 21st Century: A Primer
The shift in energy use over time has led to a decrease in total U.S. energy-related carbon dioxide (CO2) emissions. Since peaking in 2007, annual emissions have decreased roughly 2% through the end of 2019.3 Much of this decrease has been a result of changes in the electricity sector, where coal use has decreased, replaced by lower-carbon natural gas and renewable generation. The economic downturnin 2008-2009 also played a role as energy consumption is correlated with economic activity.
COVID-19