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Fossil fuels still dominate U.S. energy consumption despite recent market share decline

Despite the advancements in renewable energy generation over the past few years, fossil fuels continue to dominate the US energy consumption landscape. The EIA is expecting fossil fuel’s share to fall drastically over the next 20 years, to about 75% of consumption, the lowest level since the early 1900’s. Technological advances and potential policy changes would only further reduce the consumption of fossil fuels.

graph of energy consumption in the United States, as explained in the article text
Source: U.S. Energy Information Administration, Monthly Energy Review

Three fossil fuels—petroleum, natural gas, and coal—have provided more than 80% of total U.S. energy consumption for more than 100 years. In 2015, fossil fuels made up 81.5% of total U.S. energy consumption, the lowest fossil fuel share in the past century. In EIA’s Annual Energy Outlook 2016 Reference case projections, which reflect current laws and policies, that percentage declines to 76.6% by 2040. Policy changes or technology breakthroughs that go beyond the trend improvements included in the Reference case could significantly change that projection.

In 2015, the renewable share of energy consumption in the United States was its largest since the 1930s at nearly 10%. The greatest growth in renewables over the past decade has been in solar and wind electricity generation. Liquid biofuels have also increased in recent years, contributing to the growing renewable share of total energy consumption.

The most significant decline in recent years has been coal: U.S. coal consumption fell 13% in 2015, the highest annual percentage decrease of any fossil fuel in the past 50 years. The only similar declines were in 2009 and 2012, when coal fell 12% below the level in the previous year.

In EIA’s Reference case projection, petroleum consumption remains similar to current levels through 2040, as fuel economy improvements and other changes in the transportation sector offset growth in population and travel. Coal consumption continues to decline, especially in the electric power sector. Natural gas consumption increases in the industrial sector and the electric power sector.

Some electric fuels, such as nuclear and hydroelectric, remain relatively flat in the Reference case, with little change in capacity or generation through 2040. Biomass, which includes wood as well as liquid biofuels like ethanol and biodiesel, remain relatively flat, as wood use declines and biofuel use increases slightly. In contrast, wind and solar are among the fastest-growing energy sources in the projection, ultimately surpassing biomass and nuclear, and nearly exceeding coal consumption in the Reference case projection by 2040.

graph of energy consumption in the United States, as explained in the article text
Source: U.S. Energy Information Administration, Monthly Energy Review, Annual Energy Outlook 2016

Source: EIA.com

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