What is the size of the energy industry in America?
- May 20, 2019 10:47 pm GMT
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Along with being one of the world’s largest consumers of electricity, the US is also one of the world’s largest producers and suppliers of energy.
Energy companies in the US make use of clean energy sources like wind, solar, and nuclear power to produce oil, natural gas, coal, and electricity.
New innovations like smart grid technologies further help the American energy companies to transmit, distribute and store energy efficiently.
There are multiple factors like growing consumer demand, world-class innovation, a competitive workforce and a very capable supply chain that make the US one of the world’s most attractive markets and the second largest globally in terms of energy investment ($276 billion in 2016).
Oil and Gas extraction
Since 2009, the US is the world’s topmost producer of natural gas and since 2013, the largest producer of petroleum hydrocarbons as well
Petroleum and natural gas production in the US has increased by almost 60% since 2008 and the US shows sustained growth in the exploration and development of oil and gas; especially of shale and deep water resources.
The US oil and gas sector has been redefined due to advanced cost-effective techniques that American companies have developed for extracting hydrocarbons from shale, and to reach difficult, off-shore oil and gas deposits.
This allows many producers to maintain competitive prices even when international crude oil and natural gas prices are low.
Partly owing to the increasing productivity of new wells, US production of oil increased substantially in 2017, making up 54% of total crude oil production in the US.
Today, the energy sector in US is competitive because of crude oil and liquefied natural gas (LNG) exports. The crude oil produced here can now reach global markets and compete with other major oil exporters.
Since 1957, the US established itself as a net natural gas exporter for the first time in 2017 when it exported more natural gas than it imported.
The world’s largest estimated reserves of recoverable coal lie in the US 31% of the total electricity generated in the US in 2017 was from coal. After several years of a downhill trend, coal production and employment increased that year.
The stable economic condition of producers stuck in bankruptcy proceedings and a high export demand was one of the reasons.
From 60 million tons in 2016 to 97 million tons in 2017, US coal exports rose drastically, reaching the highest ever number since 2014.
The US is the largest global nuclear power producer, has the largest installed nuclear power capacity and operates the highest number of nuclear reactors. Almost 20 percent of the electricity generated in the US is produced at 99 nuclear reactors in 31 states.