The above graphic shows the share of energy sources in the US economy. The left side shows the energy inputs, the total amount of the U.S. energy supply, and the right side shows the breakdown of how this energy is eventually spent. One can see that the majority of U.S. energy sources are fossil fuels (coal, natural gas, and crude oil) with nuclear energy and renewable energy sources rounding out the U.S. energy portfolio. Roughly 71% of U.S. energy comes from domestic production with the remainder coming from imports. The industrial sector is the greatest consumer of energy (32.4%), followed by transportation (28.4%).




Fossil Fuels

• Offshore Drilling. The United States consumes 20,680,000 barrels of oil per day. Currently, there are 697 million barrels of oil in the U.S. Strategic Petroleum reserve. (EIA) Recent estimates put the total amount of offshore oil reserves at 18 billion barrels. At the current U.S. consumption rate of 20.6 million barrels per day, these offshore reserves are estimated to provide anywhere from 16 months to 4 years of U.S. petroleum demand.

• Petroleum Imports
  

The United States is the third largest producer of oil in the world, but still imports a large amount of its oil from foreign countries. Currently, U.S. petroleum makes up less than half of the nation's total oil demand. This dependence on imported oil drives much of the debate on energy independence from foreign oil and is driving demand for energy sources discovered, produced, and consumed in the U.S. Potential U.S.-based energy sources, aside from oil, include coal, natural gas, wind, solar, and nuclear energies.

Despite many of the concerns over energy independence are related to concerns of oil profits being used by foreign governments to fuel terrorism and other activities that are outside of U.S. interests, the Energy Information Administration's statistics show that 49% of U.S. imports come from the Western Hemisphere and only 37% of U.S. petroleum is imported from the Persian Gulf (16%) and Africa (21%). The five largest sources of petroleum imports are:

• Canada (18.2%)
• Mexico (11.4%)
• Saudi Arabia (11.0%)
• Venezuela (10.1%)
• Nigeria (8.4%)

U.S. dependence on oil imports has increased as daily oil consumption has increased and domestic fossil fuel production has declined. 1985 represented the shift to the modern era of growing consumption and imports of petroleum. Petroleum imports take many forms based on use, ranging from gasoline and diesel fue to chemical feedstocks and asphalt, among others.

Electricity

U.S. Electricity Production by Source













France Electricity Production by Source

The above table shows the contrast between U.S. electricity production and French electricity production. One can see that the French energy portfolio is much different. Nuclear energy and hydroelectricity account for a very large portion of France's electricity production, while coal and natural gas make up the majority of American production.


Japan Electricity Production by Source


(Source: France & Japan data from "Monthly Electricity Statistics," International Energy Agency, June 2008.)



Nuclear Power
The total amount of operating nuclear power plants in the U.S. is 104 in 31 states. The two states with the most nuclear power plants are Illinois (6) and Pennsylvania (5).(EIA)


Renewable Energy

• Renewable energy sources provided 7% of US energy needs in 2007 and 8.4% of American electricity production. (EIA)
• The EIA projects that by 2030 renewable energy sources will generate 12.5% of US electricity. (EIA)
• Renewable energy growth, wind energy in particular, has grown quickly since 2005 due to government subsidies that had supported the growth of the renewables sector.

• Corporate Average Fuel Economy (CAFE) Standards. Enacted by the Congress in 1975 in the wake of the 1973 Arab Oil Embargo to improve the fuel economy of cars and trucks in the United States. CAFE sets a standard for the minimum miles per gallon (mpg) of a car maker's fleet for each year. As of early 2004, the average for cars must exceed 27.5 mpg, and the light truck average must exceed 20.7 mpg. Trucks under 8500 pounds must average 22.5 mpg in 2008, 23.1 mpg in 2009, and 23.5 mpg in 2010.
• Energy Independence and Security Act of 2007 (EISA2007). EISA 2007 was signed into law December 12, 2007 and could have a significant impact on the future of energy in the United States. The following provisions of the act are of particular importance:
• Renewable fuel standard requirements for the use of 36 billion gallons of ethanol per year by 2022, with corn ethanol limited to 15 billion gallons. Any other ethanol or biodiesel may be used to fulfill the balance of the mandate, but the balance must include 16 billion gallons per year of cellulosic ethanol by 2022 and 5 billion gallons per year of biodiesel by 2012.
• A new CAFE standard for LDVs (cars and light trucks) of 35 mpg by 2020. The Act also specifies that vehicle attribute-based standards are to be developed separately for cars and light trucks.
• A CAFE credit and transfer program among manufacturers and across a manufacturer’s fleet.
• Extension through 2019 of the CAFE credits specified under the AMFA. EISA2007 reduces the maximum credit by 0.2 mpg for each model year after 2014 and phases it out entirely by model year 2020.
• Appliance energy efficiency standards for boilers, dehumidifiers, dishwashers, clothes washers, external power supplies, and commercial walk-in coolers and freezers.
• Lighting energy efficiency standards for generalservice incandescent lighting in 2012 and sooner for general-service tubular fluorescent lighting and metal halide lamp fixtures.
• Standards for industrial electric motor efficiency, requiring industrial motors of various sizes to meet the NEMA premium motor efficiency standards.
• Standards for energy use in Federal buildings, requiring a 30-percent reduction by 2015.
• The Military Construction Appropriations Act of 2005, which contains provisions to support construction of the Alaska natural gas pipeline, including Federal loan guarantees during construction.
• The Working Families Tax Relief Act of 2004, which includes tax deductions for qualified cleanfuel and electric vehicles and changes in the rules governing oil and natural gas well depletion.
• The American Jobs Creation Act of 2004, which includes incentives and tax credits for biodiesel fuels and a modified depreciation schedule for the Alaska natural gas pipeline.

• Energy companies: The U.S. is the world's greatest consumer of energy, and represents a lucrative market to energy companies. Any shifts in policy, or public attitudes, toward energy consumption will have an impact on the profits of energy companies.
  

• U.S. Government: The United States government is instrumental in setting the stage for energy policy.

• Foreign Governments: Foreign nations that depend on U.S. consumption of fossil fuels have a vested interest in American energy policy.

• Businesses: Energy costs along the business supply chain are important to all companies.
  

• Individuals: American citizens are impacted by energy costs for transportation (gasoline) and at home (electricity, natural gas). The rise of basic goods like food and clothing are usually passed on to consumers by businesses facing increased energy costs.