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Primary energy consumption in the United States in 2016 totaled 97.4 quadrillion British thermal units (Btu), a slight increase from the 2015 level. Consumption of coal decreased by 9%, nearly offsetting increases in the consumption of renewables, petroleum, natural gas, and nuclear fuel. Fossil fuels continue to account for the bulk of U.S. energy consumption, and the consumption of petroleum and natural gas both increased in 2016. However, those increases were more than offset by lower coal consumption. Overall, fossil fuels made up 81% of the United States’ total energy consumption in 2016, slightly lower than 2015 levels, but down from 86% in 2005. Petroleum consumption increased to 19.6 million barrels per day in 2016, led by increases in the transportation sector. Natural gas consumption increased to 27.5 trillion cubic feet, led by higher demand in the electric power and industrial sectors. Natural gas consumption in the residential and commercial buildings sectors fell slightly, reflecting lower heating demand. Coal consumption fell to 730 million short tons in 2016, the third consecutive year of declining coal consumption. Coal consumption decreased in the electric power sector by 61 million short tons (8%), while industrial sector coal consumption fell by 6 million short tons (11%). Nuclear fuel consumption in the United States increased 1% in 2016. The number of total operable nuclear generating units briefly increased from 99 to 100 when Watts Bar Unit 2 in Tennessee came online. Later in the year, the retirement of Nebraska’s Fort Calhoun nuclear facility brought the number of nuclear units in the United States back to 99. Year-end 2016 nuclear capacity was slightly higher than in 2015 (99.3 gigawatts versus 98.7 gigawatts), and annual average nuclear capacity factors, which reflect the use of power plants, were also slightly higher, at 92.5% versus 92.3% in 2015. Renewable fuels had the largest increase in energy consumption in 2016. Wind generation increased by nearly 20%, making up almost half of all renewable consumption increases. Solar consumption also significantly increased, as considerable electric generating capacity was added for both wind and solar resources in 2016. Hydroelectric consumption increased by 7% as the West Coast recovered from severe drought conditions. Together, wind, hydro, and solar made up 91% of renewable consumption increases. Biomass consumption, which accounted for 47% of all renewable consumption in 2016, remained close to its 2015 level.

For the past three years, underground natural gas storage capacity in the Lower 48 states has changed by relatively small increments compared to the changes in 2012 and 2013. No new storage facilities have entered service since 2013, so recent annual changes in both storage design capacities and demonstrated maximum working gas volumes reflect the aggregate effect of small changes at existing facilities. The relatively small change in natural gas storage capacity over the past three years is likely a reflection of long-term trends, such as higher levels of natural gas production, the proximity of production to consuming markets in the Northeast and Midwest, and the lower price premium for natural gas during the winter. These trends may reduce reliance on storage as a source of supply during periods of elevated demand, such as during cold winter months. EIA has published updated estimates of storage capacity based on data for the end of November, which is approximately when storage levels have reached their highest points for the year. EIA uses two distinct measures of natural gas storage capacity: design capacity and demonstrated working natural gas volume. Design capacity is the sum of the 385 active storage fields’ working gas design capacity, as of November 2016, as reported in EIA’s Underground Natural Gas Working Storage Capacity. Design capacity is based on the physical characteristics of the reservoir, installed equipment, and operating procedures particular to the site that are often certified by federal or state regulators. Design capacity increased slightly, growing 0.7%, from 4,658 billion cubic feet (Bcf) in November 2015 to 4,688 Bcf in November 2016. This increase resulted from a combination of expansions at existing facilities, reclassifications from base gas to working gas, and the restoration of an inactive facility to service. Demonstrated maximum working gas volume is the sum of peak volumes reported by the 385 active storage facilities in the Lower 48 states, regardless of when the individual field-level peaks occurred over the five-year (60-month) reporting period ending November 2016. In the graphic below, this measure is compared to the five-year period ending November 2015. In the Lower 48 states, the demonstrated maximum working gas volume grew by 0.7%, from 4,342 Bcf in 2015 to 4,373 Bcf in 2016. Demonstrated maximum working gas volumes can be affected by short-term circumstances. For example, the 2016 injection season started with very high levels largely because of the mild winter of 2015–16. These injections led to all-time high storage levels in November, at the beginning of the most recent withdrawal season. As a result, many storage facilities reached new demonstrated maximums in 2016.

U.S. primary energy production totaled 84.1 quadrillion British thermal units (Btu) in 2016, falling 4% from the 2015 level, the first annual decline in U.S. energy production since 2009. The decline in production coincided with an increase in both total energy imports and exports. U.S. fossil fuel production fell 7% from 2015 to 2016. Most of this decline was from coal production, which decreased 18% and fell to its lowest level since 1978. Relatively low natural gas prices, especially in the first half of 2016, and relatively flat electricity demand contributed to the decline in coal production. Petroleum and natural gas production also declined, falling 5% and 2%, respectively, as prices for both fuels were below their respective 2015 levels. After declining slightly in 2015, U.S. renewable energy production increased 7% in 2016. Wind energy made up almost half the increase in renewable production, while solar energy accounted for nearly a quarter. Both fuels saw substantial electricity generating capacity additions in 2015 and 2016. Hydroelectricity also accounted for almost a quarter of the increase in renewable energy production, largely because of easing drought conditions in the West Coast states, where most of the U.S. hydroelectric capacity is located. After ten consecutive years of decline, U.S. total energy net imports rose 6% from 2015 to 2016, as the growth in gross imports outpaced the increase in gross exports. U.S. gross energy imports increased 7% from 2015 to 2016. Most of the increase came from additional crude oil imports, which rose 7% as low gasoline prices led to an increase in gasoline demand. Despite the decrease in production, total energy exports rose 7% from 2015 to 2016. Petroleum product exports increased 8%, natural gas exports increased 30%, and crude oil exports increased 13%. These increases and relatively small changes in biofuels, electricity, and coal coke exports offset a 19% decline in coal exports. For the first time on record, gross exports of natural gas from the United States exceeded those of coal in energy-equivalent terms. EIA projects that the United States will become a net exporter of natural gas on an annual basis by 2018, as domestic production continues to grow and additional natural gas export capacity, particularly to Mexico, comes online.

U.S. primary energy production totaled 84.1 quadrillion British thermal units (Btu) in 2016, falling 4% from the 2015 level, the first annual decline in U.S. energy production since 2009. The decline in production coincided with an increase in both total energy imports and exports. U.S. fossil fuel production fell 7% from 2015 to 2016. Most of this decline was from coal production, which decreased 18% and fell to its lowest level since 1978. Relatively low natural gas prices, especially in the first half of 2016, and relatively flat electricity demand contributed to the decline in coal production. Petroleum and natural gas production also declined, falling 5% and 2%, respectively, as prices for both fuels were below their respective 2015 levels. After declining slightly in 2015, U.S. renewable energy production increased 7% in 2016. Wind energy made up almost half the increase in renewable production, while solar energy accounted for nearly a quarter. Both fuels saw substantial electricity generating capacity additions in 2015 and 2016. Hydroelectricity also accounted for almost a quarter of the increase in renewable energy production, largely because of easing drought conditions in the West Coast states, where most of the U.S. hydroelectric capacity is located. After ten consecutive years of decline, U.S. total energy net imports rose 6% from 2015 to 2016, as the growth in gross imports outpaced the increase in gross exports. U.S. gross energy imports increased 7% from 2015 to 2016. Most of the increase came from additional crude oil imports, which rose 7% as low gasoline prices led to an increase in gasoline demand. Despite the decrease in production, total energy exports rose 7% from 2015 to 2016. Petroleum product exports increased 8%, natural gas exports increased 30%, and crude oil exports increased 13%. These increases and relatively small changes in biofuels, electricity, and coal coke exports offset a 19% decline in coal exports. For the first time on record, gross exports of natural gas from the United States exceeded those of coal in energy-equivalent terms. EIA projects that the United States will become a net exporter of natural gas on an annual basis by 2018, as domestic production continues to grow and additional natural gas export capacity, particularly to Mexico, comes online.