![U.S. Energy Production Hits All-Time High, Far Outpacing Consumption](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/06/us-energy-production-hits-all-time-high-far-outpacing-consumption.jpg?itok=V65duCC2)
(Source: Shutterstock.com)
Thanks to record levels of natural gas production and mild winter months, total U.S. energy production hit a new high in 2023, while overall consumption fell at the same time.
The result was a gap between production and consumption of 9 quadrillion Btus (quads), the biggest gap since 1949 — the furthest back that records go. Total energy produced amounted to 103 quads, while total consumption came in at 94 quads.
In 2023, dry natural gas production grew 4% from the year before to a record 39 quads, a 58% increase over a decade. Crude oil production reached 27 quads, another record, after growing 9% from 2022. NGL production has increased 143% since 2013 and amounted to 8 quads last year.
![U.S. Energy Production Hits All-Time High, Far Outpacing Consumption](/sites/default/files/inline-images/6-27%20EIA%20Production%20vs%20Consumption%20graph.jpg)
Natural gas led the way in increased energy production, thanks largely to the Permian Basin.
Despite low prices, natural gas production has continued to grow in the Permian because it’s a byproduct of crude oil production in the nation’s most active oil play. The basin accounted for almost half of crude production in 2023, according to EIA spokesman Chris Higginbotham, according to Reuters.
Solar and biomass also played a growing role, producing a record 6 quads in 2023.
Only coal and wind power production declined. U.S. power companies have been retiring coal plants to cut greenhouse-gas emissions, lessening demand. Wind power production fell by 2% in 2023 because average U.S. wind speeds were slower throughout the year, according to the EIA.
The EIA uses Btus, a measurement of heat content of fuels or energy sources, to compare barrels of oil, cubic feet of gas or kilowatt-hours for solar energy. One Btu is the quantity of heat required to raise the temperature of a pound of water by 1 F.
Across the U.S., not much heat was required by customers from January to March or October to December. The National Weather Service reported that warmer-than-average temperatures were the norm in the 2023 winter months.
U.S. energy consumption declined from 2022 to 2023, led by 17% drop in coal consumption for power generation to 8 quads.
The U.S. set a record of 99 quads of consumption in 2007. Since then, consumption has remained between 89 quads and 97 quads per year, EIA said.
Recommended Reading
US Court Overturns Alaska Oil Lease Sale in a Win for Environmentalists
2024-07-17 - The ruling affects a lease sale held in December 2022 of offshore tracts for oil and gas development in the Cook Inlet in the northern Gulf of Alaska.
OPEC+ Brings Oil Overproduction Under Heel—Rystad
2024-07-15 - After years of noncompliance and underreporting of actual crude production, many OPEC+ members are voluntarily reducing output beyond set goals, according to analysis by Rystad Energy.
What's Affecting Oil Prices This Week? (July 15, 2024)
2024-07-15 - Stratas Advisors expects economic news to put some downward pressure on oil prices during the upcoming week.
Biden Administration Mulls More Alaska Drilling Protections
2024-07-15 - The BLM will take public comment on whether to update protected areas in the Western Arctic.
FTC Requests More Info on $17.1B ConocoPhillips, Marathon Oil Deal
2024-07-12 - The U.S. Federal Trade Commission’s request for additional information regarding ConocoPhillips’ $17.1 billion acquisition of rival Marathon Oil is likely to delay the transaction. Other recent energy M&A deals have faced similar “second requests” from the FTC.