U.S. energy spending increased by more than 20% in 2022

In-brief analysis

August 28, 2024

In 2022, energy expenditures-or the amount of money U.S. consumers spent on energy-increased 22% from 2021 to more than $1.7 trillion when adjusted for inflation, according to our State Energy Data System (SEDS). More money was spent on energy in the United States on an inflation-adjusted basis in 2022 than in all but two years in our records. Higher U.S. energy prices in 2022 compared with 2021, particularly higher petroleum prices for transportation, caused most of the increase in total U.S. energy expenditures.

Petroleum and natural gas prices were relatively high in 2022 in part due to Russia's full-scale invasion of Ukraine. Prices have since fallen as global energy markets have adjusted to new trade patterns for crude oil and natural gas production has set new records in the United States.

Our energy expenditures data represent the total amount of money spent in the United States by end users of petroleum products, electricity, natural gas, and other fuels in the residential, commercial, industrial, and transportation sectors combined. We calculate expenditures as energy consumption multiplied by the average price paid by end users for those fuels.

In 2022, U.S. inflation-adjusted energy expenditures per capita increased 22%, totaling $5,200. Alaska had the highest per-capita energy expenditures at $13,100, followed by Wyoming at $11,200. The three states with the lowest per-capita energy expenditures were New York at $4,100, and Maryland and Florida at $4,000. The District of Columbia had the lowest energy expenditures per capita at $3,900.

Per-capita U.S. energy expenditures on an inflation-adjusted basis were higher in 2022 than in all but eight years in our records.

U.S. energy expenditures accounted for 6.7% of nominal gross domestic product (GDP) in 2022, compared with 5.6% in 2021. Energy expenditures as a share of GDP compares the total amount of money spent on end-use energy in the United States to the value of all goods and services in the U.S. economy.

Petroleum: U.S. end-use energy expenditures for petroleum totaled $1 trillion in 2022, a 29% increase from 2021 when adjusted for inflation. The rise is primarily due to high prices for motor gasoline, distillate fuel oil, and jet fuel in the transportation sector. Together, the three fuels accounted for 96% of petroleum consumed in the transportation sector in 2022. Petroleum products used for purposes other than generating electricity made up the largest share (61%) of U.S. end-use energy expenditures in 2022.

Electricity: Electricity accounted for 28% of the nation's total end-use energy expenditures in 2022. Electricity expenditures were $482 billion, a 7% increase from 2021 when accounting for inflation. The electricity expenditures estimates we publish include the amount of money spent on electricity by end-use customers, such as businesses and homes. We remove the expenditures for primary energy sources (natural gas, coal, nuclear, renewables, and petroleum) the electric power sector uses to generate electricity to avoid double counting.

Natural gas: U.S. inflation-adjusted energy expenditures for the end use of natural gas totaled $179 billion in 2022, a 26% increase from 2021. Natural gas used for purposes other than generating electricity, such as heating and cooling homes and buildings, accounted for 10% of all of the nation's end-use energy expenditures in 2022.

Other: Coal, coal coke net imports, and wood and biomass waste combined totaled $11 billion of the nation's total end-use energy expenditures in 2022, a 24% increase from the previous year when adjusted for inflation. Coal, coal coke net imports, and wood and biomass waste used for purposes other than generating electricity, such as metal manufacturing, made up the smallest share (1%) of the nation's total end-use energy expenditures in 2022.

Principal contributors: Melissa Alejandro, Brett Marohl

Tags: natural gas, electricity, prices, liquid fuels, states, oil/petroleum

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