MEDCOC BR September 2023 Final

U.S. ENERGY PRODUCTION HAS BEEN GREATER THAN U.S. ENERGY CONSUMPTION IN RECENT YEARS U.S. total annual energy production has exceeded total annual energy consumption since 2019. In 2022, production was 102.92 quads and consumption was 100.41 quads. Fossil fuels—petroleum, natural gas, and coal— accounted for about 81% of total U.S. primary energy production in 2022. The percentage shares and amounts (in quads) of total U.S. primary energy production by major sources in 2022 were:

THE MIX OF U.S. ENERGY CONSUMPTION AND PRODUCTION HAS CHANGED OVER TIME

Fossil fuels have dominated the U.S. energy mix for more than 100 years, but the mix has changed over time. 2

US PRIMARY ENERGY CONSUMPTION BY MAJOR SOURCES 1950-2020

Petroleum’s share of total U.S. energy consumption peaked in the 1970s. In 1977, total petroleum consumption was about 48% (37 quads) of total U.S. energy consumption. In 2022, petroleum’s share of total U.S. energy consumption was 36% (36 quads). U.S. petroleum consumption decreased in 2020, largely as a result of the response to the COVID-19 pandemic, and then increased in 2021 and 2022 as the economy recovered from the pandemic. Annual crude oil production generally decreased between 1970 and 2008. The trend reversed in 2009 and crude oil

production reached a record high in 2019. More cost-effective oil well drilling and production technologies, notably in tight oil and shale deposits, has helped to drive increases in annual crude oil production. U.S. total annual crude oil production was lower in 2020 and 2021, in part, because of the COVID-19 pandemic’s effect on U.S. petroleum product demand. Total annual U.S. crude oil production was higher in 2022 because U.S. oil producers responded to increases in U.S. and world petroleum demand and to substantial increase in oil prices in the first half of 2022. Continued on next page.

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October 2023 | The Business Review

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