U.S. Energy Production Outpaced Consumption by Record Amount Last Year: EIA

U.S. energy production rose 4 percent to a record high of around 103 quadrillion British thermal units (quads) during 2023, according to a June 26 report published by the U.S. Energy Information Administration. Moreover, U.S. energy consumption declined by 1 percent to 94 quads during 2023. Production surpassed consumption during 2023 by a record 9 quads, the highest increase in over 70 years.

The growth in U.S. energy production during 2023 can be attributed to increasing production of natural gas and crude oil. Dry natural gas production rose 4 percent to 39 quads during 2023, a record high. The regions of Appalachia, Permian, and Haynesville accounted for 59 percent of total U.S. natural gas production. U.S. natural gas production has increased over the last two decades due to developments in drilling techniques and the utilization of shale gas reserves. U.S. crude oil production increased by 9 percent during 2023 compared to 2022 and reached a record high of 27 quads. Furthermore, natural gas plants liquids production rose by 8 percent year-on-year to 8 quads during 2023.

Energy generation from renewable energy sources, such as solar, wind and biomass, amongst others rose by 1 percent year-on-year during 2023 to a record 8 quads, an increase of 28 percent over the last decade. Solar energy generation rose by 15 percent during 2023 compared to the previous year and outturned close to 1 quad. Biomass energy generation increased by around 2 percent, exceeding more than 5 quads. On the other hand, wind generation declined by around 2 percent year-on-year during 2023 to around 1.5 quads, as a result of slower wind speeds.

U.S. energy consumption declined in 2023, largely driven by a decline in coal consumption. Coal usage declined by 17 percent year-on-year to 8 quads during 2023. Coal utilization has been at its lowest since the 19th century and the decline can be attributed to a reduction of coal usage for electricity generation.