U.S. Energy Expenditures Rise By 22 Percent Year-On-Year During 2022: EIA

In 2022, U.S. consumer spending on energy surged by 22 percent compared to 2021, exceeding $1.7 trillion after adjusting for inflation, according to an Aug. 28 report published by the U.S. Energy Information Administration.

The increase was driven by higher U.S. energy prices, particularly higher petroleum prices for transportation. Petroleum and natural gas prices were relatively higher during 2022 due to Russia’s invasion of Ukraine. The Russian invasion of Ukraine in February 2022 led to a reduction in the amount of Russian pipelined gas coming towards Europe. As a result, the demand for U.S. liquefied natural gas (LNG) rose in the European market. The Asian and European markets both competed for U.S. LNG, which led to higher prices for U.S. gas. Petroleum and natural gas prices have since declined as global trading dynamics adjust to the new structural change in trade patterns for crude oil and natural gas.

U.S. energy spending per capita rose 22 percent during 2022, totaling $5,200. The state of Alaska has the highest per capita energy spend at $13,100, followed by Wyoming at $11,200. New York’s per capita energy spend was $4,100, whilst Florida’s and Maryland’s was $4,000 during 2022. The lowest energy spending per capita was in the District of Columbia at $3,900.

U.S. end use energy spending for petroleum amounted to $1 trillion during 2022, up 29 percent compared to 2021, when adjusted for inflation. The increase can be attributed to high prices for distillate fuel oil, motor gasoline and jet fuel in the transportation sector. U.S. electricity spending rose by seven percent to $482 billion during 2022 compared to 2021, when adjusted for inflation.

U.S. end use natural gas spending amounted to $179 billion during 2022, up 26 percent compared to 2021, when adjusted for inflation. Coal, coal coke net imports and wood and biomass waste together amounted to $11 billion of the U.S. total end use energy spending during 2022, up 24 percent compared to 2021, when adjusted for inflation.