Production covered 87% of consumption
U.S. energy production as a percentage of consumption fell in 2016, pushing the U.S. from energy independence, according to BP’s Statistical Review of World Energy. U.S. production in 2016 was sufficient to meet about 87% of consumption, down from 91% in 2015.
Overall primary energy production declined by 5.2% in 2016, significantly above the ten-year average of 2.4%. Energy consumption also decreased, but by only 0.4%.
Coal production down by 19%
Declining coal production was in large part responsible for the step away from production covering consumption. The decrease in coal consumption of 8.8% was outweighed by production falling by 19%. BP reports that current levels of coal consumption and production in the U.S. are the lowest since 1981.
Low commodity prices meant both oil and gas production fell in 2016. According to BP, these declines were the first decreases in oil and gas production since 2008 and 2005, respectively. American oil production dropped by 0.4 MMBOPD, and gas production fell by 1.8 Bcf/d.
Unlike coal, however, the declines in oil and gas production were accompanied by small increases in consumption. According to BP, U.S. oil consumption increased by about 100 MBOPD in 2016 and gas consumption grew by 0.3 Bcf/d.
Nuclear, renewables do not outweigh overall trend
While production from other energy sources grew last year, the changes were not enough to balance the decline in coal, oil and gas consumption. Non-fossil fuels represent a combined 15% of total U.S. needs, split between nuclear, renewables and hydro at 8%, 4% and 3%, respectively. Each of these energy sources grew in 2016, but were not enough to reverse the decline seen in coal, oil and gas..
Oil, coal rebounding in 2017
The decline in production of energy sources may be reversed in 2017, bringing the U.S. closer to net energy independence. After falling through most of 2016, oil production is growing again as plays like the Permian allow operators to be comfortable with current prices. According to the EIA, year-to-date coal production is up 16% from this point last year. Only natural gas production has not reversed direction, and has been approximately flat through 2017.
