Tracing The Evolution Of U.S. Energy Use: From Wood To Renewables, And The Milestones Of 2023

In 2023, the United States consumed 94 quadrillion British thermal units (quads) of energy, representing a 1% decrease from the previous year. According to the Monthly Energy Review, fossil fuels—petroleum, natural gas, and coal—comprised nearly 83% of this total energy consumption, while nonfossil fuels, including renewables and nuclear energy, accounted for the remaining 17%. Petroleum maintained its position as the most-consumed fuel in the country for the 73rd consecutive year, and for the first time in about 140 years, renewables surpassed coal in energy consumption.

Looking back at U.S. history, energy use has evolved significantly. When the Declaration of Independence was signed in 1776, wood was the primary energy source, used for heating, cooking, and lighting. Wood remained the dominant energy source until the late 1800s, when coal took over. Although early uses of water power for milling operations are not well-documented, such mills were common throughout early U.S. history. The industrial use of hydropower began in 1880, when it was used to power lamps at a chair factory in Grand Rapids, Michigan. The first hydroelectric power plant to sell electricity to the public opened in 1882 on the Fox River near Appleton, Wisconsin.

Renewable energy did not gain significant traction in the U.S. energy landscape until recent decades. In 2016, biofuels surpassed wood as the most-consumed renewable energy source. During the 1980s, the United States began using more ethanol blended with petroleum gasoline and later incorporated biodiesel and renewable diesel into petroleum diesel. Renewable diesel, which can substitute for petroleum diesel, became more prominent, surpassing biodiesel usage for the first time in 2022. Electricity generation from zero-carbon sources like wind and solar has also surged in recent years. In 2022, renewable energy consumption in the U.S. surpassed nuclear energy consumption for the first time since 1984. U.S. nuclear energy consumption, which began in the late 1950s, has remained relatively constant since the early 2000s.

Coal was the primary energy source in the U.S. for about 65 years, from 1885 until 1950, when petroleum surpassed it. Coal was used for various purposes, including home heating and transportation, but since the 1960s, nearly all coal consumed in the U.S. has been used for electricity generation. Petroleum has been the most-consumed energy source since 1950, used extensively in transportation, industrial chemicals, and plastics. Natural gas, once considered a waste byproduct of crude oil production, became a major energy source used for heating and electricity generation. The availability of natural gas increased rapidly due to advancements in U.S. drilling technology, and its consumption almost matched that of petroleum in 2020 when the COVID-19 pandemic reduced transportation energy use.

In 2023, renewable energy consumption in the U.S. increased by 2% from the previous year, reaching a record 8.2 quads. This rise was largely driven by increased use of biofuels in transportation and solar energy for electricity generation. Conversely, U.S. wind energy consumption decreased for the first time in 25 years. Coal consumption declined to 8.2 quads, the lowest since around 1900, primarily due to reduced coal use for electricity generation. Nuclear energy consumption slightly increased to 8.1 quads, largely because of the new Vogtle Unit 3 reactor in Georgia, which began operations in July 2023.

Petroleum consumption in 2023 totaled 35.4 quads, remaining below its 2005 peak. Most petroleum energy was used in transportation, despite the increasing adoption of electric vehicles. Natural gas consumption reached a record 33.6 quads, mainly due to its increased use in electricity generation. Since 2018, the electric power sector has been the largest consumer of natural gas in the U.S.

To compare different energy types, British thermal units (BTUs) are used as a common unit of heat. Starting with the 2023 data release, the methodology for converting electricity generated by non-combustible renewables to BTUs changed, which affected the assessment of when renewable energy consumption surpassed coal. Under the new captured energy approach, renewables surpassed coal in 2023 for the first time since about 1885, whereas under the previous fossil fuel equivalency approach, this milestone was reached in 2019.