As shown in Figure 1, total U.S. energy consumption increased more than 25 percent in the past two decades, with expanded use of electricity in residential and commercial buildings contributing most to this growth. The energy sources that fueled the growing demand for electricity were mostly nuclear power and coal, as shown in Figure 2. Oil imports also increased more than one-third to meet the increasing need for fuel in the transportation sector and to offset declining domestic production. The overall growth in energy demand, however, was outstripped by the 65-percent growth of the U.S. economy over the same period. Energy and Economic Productivity Reliable and competitively priced energy supply has played a critical role in supporting U.S. economic growth and the high standard of living now enjoyed by most Americans.
Energy is also a major component of our international balance of trade.
Energy supply markets and demand markets have changed considerably over the past 25 years. On the supply side, greater competition has led to expanded production of coal, natural gas, and renewable energy under conditions of stable or even falling energy prices. The increased demand for energy services has been partially offset by more efficient use of energy in all three major end-use sectors. The net result of this mix of trends has been relatively stable or slowly growing energy demand in most sectors. In the next several decades, the United States is likely to face increasing competition for the world's energy resources, particularly from the rapidly expanding economies of East Asia.