How has Energy use Changed Throughout U.S. History?

Deep analysis

July 3, 2024

In 2023, 94 quadrillion British thermal units (quads) were consumed in the United States, down 1% from 2022, according to our monthly energy review. Fossil fuels—petroleum, natural gas, and coal—accounted for nearly 83% of total U.S. energy consumption in 2023. Non-fossil fuel energy—from renewables and nuclear—accounted for the other 17%. In 2023, petroleum remained the most consumed fuel in the United States, as it has been for the past 73 years, and renewables surpassed coal for the first time in nearly 140 years.

How has energy use changed throughout U.S. history?

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 source of energy in the United States until the late 19th century, when it was overtaken by coal.

Early use of water for grain, lumber, and other milling operations is not well defined and is not included in our data, but such mills were common throughout early U.S. history. The first industrial use of hydroelectric power 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.

Renewable energy has not become a more important part of U.S. energy again until recently. Biofuels became the most consumed renewable energy source in the United States in 2016, surpassing wood. In the 1980s, the United States began consuming more ethanol blended with petroleum motor gasoline, and later biodiesel and renewable diesel blended with petroleum diesel. Renewable diesel can be substituted for petroleum diesel, but chemical differences limit the amount of biodiesel that can be blended with petroleum diesel. Renewable diesel surpassed biodiesel use in the United States for the first time in 2022.

Electricity generation from carbon-free sources like wind and solar has grown rapidly in recent years. In 2022, U.S. energy consumption from renewable sources surpassed nuclear power for the first time since 1984. U.S. nuclear power consumption began in the late 1950s and has remained fairly steady since the early 2000s.

Coal was the largest source of energy in the United States for about 65 years, from 1885 until 1950, when it was overtaken by petroleum. Early uses of coal included many now-defunct uses, such as home heating stoves and in the engines of trains and boats. Since the 1960s, nearly all coal consumed in the United States has been used to generate electricity.

Petroleum has remained the most consumed energy source in the United States since 1950. Petroleum products, such as motor gasoline, diesel, jet fuel, and propane, are commonly used in all sectors of the modern American economy, from transportation to industrial chemicals and plastics.

Natural gas is the second-largest source of energy consumption in the United States, having been so for most years since it surpassed coal in 1958. Once seen as a waste byproduct of crude oil production, natural gas has become a popular energy source used for heating and electricity generation. Due to recent advances in U.S. drilling technology, natural gas availability in the United States has increased rapidly, and its consumption nearly surpassed petroleum in 2020 as the effects of the COVID pandemic limited the amount of energy used for transportation.

How will energy consumption in the United States change in 2023?

U.S. renewable energy consumption is set to rise 2% from 2022 to a record 8.2 quad in 2023, largely driven by increased use of biofuels for transportation and solar for electricity generation. In 2023, U.S. wind consumption is set to fall for the first time in 25 years.

Coal consumption fell to 8.2 quad in 2023, the lowest since about 1900. U.S. coal consumption has fallen by more than half since its peak in 2005, largely due to a decline in coal use for electricity generation.

Total nuclear power consumption is expected to be 8.1 quad in 2023, a slight increase compared to 2022. The slight increase is largely due to the new Vogtl Unit 3 reactor in Georgia in July 2023.

U.S. petroleum consumption has remained below its 2005 peak, reaching 35.4 quads by 2023. Most of the petroleum energy is consumed in transportation. Despite the rise in electric vehicles, petroleum remains the dominant fuel for cars, trucks, and airplanes.

U.S. natural gas consumption hit a record 33.6 quad in 2023, largely driven by increased use in electricity. More natural gas has been consumed in the U.S. electric power sector than in any other economic sector every year since 2018.

How do we compare different types of energy with each other?

We use a common unit of heat called British Thermal Units to compare energy across sources and sectors.

Starting with our 2023 data release, we have changed our approach to converting electricity generated from non-combustible renewables into BTUs, changing our assessment of when renewable energy consumption will overtake coal consumption.

Under the captured energy approach we are using now, U.S. renewable energy consumption will surpass coal consumption in 2023 for the first time since about 1885. Under our previous fossil fuel offset approach, renewable energy consumption surpassed coal consumption in 2019.

Major Contributors: Mickey Francis, Owen Comstock