Chart: The Rate of Change in U.S. Energy Consumption
Connect with us

Energy

Chart: The Rate of Change in U.S. Energy Consumption

Published

on

Chart: The Rate of Change in U.S. Energy Consumption

Chart: The Rate of Change in U.S. Energy Consumption

This chart shows the winners and losers in energy sources used

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Weeks ago, we published a flow chart that showed all U.S. energy consumption from 2015 in one giant diagram.

This is a great tool for understanding a static picture of U.S. energy consumption – it breaks down the energy sources, as well as the details about where the energy ultimately flows. It also shows that a large amount of energy potential, about 61%, is inevitably “wasted” due to the laws of physics as well as inefficient processes.

However, because it is a static view of one year, it ends up doing a poor job of encapsulating how the energy sector is shifting. This week’s chart shows the changing landscape for different energy sources in the United States.

Examining the Shift in U.S. Energy Consumption

As a starting point, based on the aforementioned diagram of energy usage, let’s look at the composition of the energy mix:

  • Oil: 36%
  • Natural gas: 29%
  • Coal: 16%
  • Renewables: 10%
  • Nuclear: 9%

Now, let’s look at the rate of change of these broad categories between 2014 and 2015 according to the EIA:

  • Oil: +2%
  • Natural gas: +3%
  • Coal: -12%
  • Renewables: +1%
  • Nuclear: 0%

On a macro level, the first obvious note is that coal consumption dropped rapidly in 2015. This, along with other factors, is why many people are declaring that coal is dead.

Another interesting observation is that renewables only increased by 1% in consumption. This seems strange, considering that there is such hype around things like the Tesla Gigafactory and the surging demand for lithium-ion batteries. Diving a bit deeper will provide an explanation for this.

Renewable Energy

There are five main components that make up U.S. renewable energy: solar, wind, hydro, geothermal, and biomass.

The biggest sub-sector is biomass, which made up about 43% of all renewable usage in the United States in 2015. Hydro is also significant, as it is 27% of the renewable total. However, as you will see, consumption in biomass and hydro dropped between 2014 and 2015:

  • Biomass: -5%
  • Hydro: -4%
  • Wind: +5%
  • Solar: +31%
  • Geothermal: +4%

Even though the biomass and hydro consumption dropped, the future of renewables is in good hands. In particular, it has been the miraculous change in the price per watt of solar energy that has changed the landscape. Solar energy consumption, even though it is a relatively small number compared to other energy sources, increased by 31% in 2015.

As a final point, here is the data and projections going out to 2017 for the main renewable sources, according to the EIA. Note that solar’s CAGR (compound annual growth rate) is 39% between 2013 and the projected 2017 number.

Renewable energy consumption (Quadrillion Btu, 2015)

 2013201420152016e2017eCAGR (2013-2017)
Solar0.310.420.550.660.8239%
Geothermal0.210.210.220.230.233%
Wind1.601.731.812.082.2612%
Hydro2.562.472.392.572.52-1%
Biomass3.763.933.773.743.750%

Subscribe to Visual Capitalist
Click for Comments

Energy

What’s Made from a Barrel of Oil?

Oil is a building block that makes modern life possible. Here are the proportion of finished products that are created from a barrel of oil.

Published

on

What Products Are Made from a Barrel of Oil?

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

From the gasoline in our cars to the plastic in countless everyday items, crude oil is an essential raw material that shows up everywhere in our lives.

With around 18 million barrels of crude oil consumed every day just in America, this commodity powers transport, utilities, and is a vital ingredient in many of the things we use on a daily basis.

This graphic visualizes how much crude oil is refined into various finished products, using a barrel of oil to represent the proportional breakdown.

Barrel of Oil to Functional Fuel and More

Crude oil is primarily refined into various types of fuels to power transport and vital utilities. More than 85% of crude oil is refined into fuels like gasoline, diesel, and hydrocarbon gas liquids (HGLs) like propane and butane.

Along with being fuels for transportation, heating, and cooking, HGLs are used as feedstock for the production of chemicals, plastics, and synthetic rubber, and as additives for motor gasoline production.

Refined Crude Oil ProductShare of Crude Oil Refined
Gasoline42.7%
Diesel27.4%
Jet fuel5.8%
Heavy fuel5.0%
Asphalt4.0%
Light fuel3.0%
Hydrocarbon gas liquids2.0%
Other10.1%

Source: Canadian Association of Petroleum Producers

Crude oil not only powers our vehicles, but it also helps pave the roads we drive on. About 4% of refined crude oil becomes asphalt, which is used to make concrete and different kinds of sealing and insulation products.

Although transportation and utility fuels dominate a large proportion of refined products, essential everyday materials like wax and plastic are also dependent on crude oil. With about 10% of refined products used to make plastics, cosmetics, and textiles, a barrel of crude oil can produce a variety of unexpected everyday products.

Personal care products like cosmetics and shampoo are made using petroleum products, as are medical supplies like IV bags and pharmaceuticals. Modern life would look very different without crude oil.

The Process of Refining Crude Oil

You might have noticed that while a barrel of oil contains 42 gallons, it ends up producing 45 gallons of refined products. This is because the majority of refined products have a lower density than crude oil, resulting in an increase in volume that is called processing gain.

Along with this, there are other inputs aside from crude oil that are used in the refining process. While crude oil is the primary input, fuel ethanol, hydrocarbon gas liquids, and other blending liquids are also used.

U.S. Refiner and Blender InputsShare of Total
Crude oil85.4%
Fuel ethanol4.8%
Blending components3.5%
Hydrocarbon gas liquids3.0%
Other liquids3.3%

Source: EIA

The process of refining a 30,000-barrel batch of crude oil typically takes between 12-24 hours, with refineries operating 24 hours a day, 365 days a year. Although the proportions of individual refined products can vary depending on market demand and other factors, the majority of crude oil will continue to become fuel for the world’s transport and utilities.

The Difficulty of Cutting Down on Crude Oil

From the burning of heavy fuels that tarnish icebergs found in Arctic waters to the mounds of plastic made with petrochemicals that end up in our rivers, each barrel of oil and its refined products impact our environment in many different ways.

But even as the world works to reduce its consumption of fossil fuels in order to reach climate goals, a world without crude oil seems unfathomable.

Skyrocketing sales of EVs still haven’t managed to curb petroleum consumption in places like Norway, California, and China, and the steady reopening of travel and the economy will only result in increased petroleum consumption.

Completely replacing the multi-faceted “black gold” that’s in a barrel of oil isn’t possible right now, but as electrification continues and we find alternatives to petrochemical materials, humanity might at least manage to reduce its dependence on burning fossil fuels.

Continue Reading

Energy

Mapped: Visualizing U.S. Oil Production by State

The U.S. is the largest oil producer in the world. Here we map the share of oil production in the country by all 50 states in 2020.

Published

on

Map of U.S. Oil Production by State

Mapped: Visualizing U.S. Oil Production by State

In 2018, the United States became the world’s top crude oil producer. It has strongly held this position ever since.

According to the U.S. Energy Information Administration (EIA), the country accounted for nearly 15% of the world’s total oil production in 2020, churning out close to 13 million barrels of crude oil per day—more than Russia or Saudi Arabia.

Although total U.S. oil production declined between 1985 and 2008, annual production increased nearly every year from 2009 through 2019, reaching the highest amount on record in 2019.

The Dominant Oil Producing States

Impressively, 71% of total U.S. oil production came from just five states. An additional 14.6% came from the Gulf of Mexico, which is a federal jurisdiction.

Here are the five states that produce the largest amount of crude oil:

RankStateOil Production
(billion barrels)
Share of Total Production
1Texas1.7843.0%
2North Dakota0.4310.4%
3New Mexico0.379.2%
4Oklahoma0.174.1%
5Colorado0.164.0%

Rounding the top 10 are states like Alaska, California, Wyoming, Louisiana, and Utah.

Texas is undoubtedly the largest oil-producing state in the United States. In 2020, Texas produced a total of 1.78 billion barrels of oil. Texas is home to the most productive U.S. oil basin, the Permian, routinely accounting for at least 50% of total onshore production. A distant second is North Dakota, which produced about 431.2 million barrels of oil in 2020.

Regional Distribution of U.S. Oil Production

A total of 32 of the 50 U.S. states produce oil. They are divided among five regional divisions for oil production in the U.S., known as the Petroleum Administration for Defense Districts (PADD).

These five regional divisions of the allocation of fuels were established in the U.S. during the Second World War and are still used today for data collection purposes.

Given that Texas is the largest U.S. oil-producing state, PADD 3 (Gulf Coast) is also the largest oil-producing PADD. PADD 3 also includes the federal offshore region in the Gulf of Mexico. There are around 400 operational oil and gas rigs in the country.

Impact of U.S. Oil Production on Employment

Rapid growth in oil production using advanced drilling methods has created high-paying jobs in states like North Dakota and Texas.

Thanks to the rapid development in the Bakken Shale formation, North Dakota boasts the nation’s lowest unemployment rate. The state has also grown personal income and state economic output at a fast rate, due to oil and gas industry growth.

Oil production from the Eagle Ford Shale has transformed a relatively poor region of South Texas into one of the nation’s most significant economic development zones. In fact, due largely to the oil and natural gas industry, the Texas Comptroller estimates that Texas has recovered 100% of the jobs lost during the Great Recession.

Looking to the Future

The U.S. slashed its oil production forecast through next year just as OPEC and its allies begin to roll back their production cuts in the coming months.

U.S. oil output will drop to 11.04 million barrels a day this year, down from a forecasted 11.15 million. This was a result of the deep freeze that shut down the oil industry in Texas. The EIA also lowered its output forecast for 2022 by 100,000 barrels a day.

Despite its forecast for a rise in supply from outside the cartel this year, OPEC said in its report that it is uncertain about the levels of investment expected to determine the non-OPEC supply outlook for the years to come.

Continue Reading

Subscribe

Popular