Tracking the Evolution of U.S. Energy Use: From Wood to Renewables and 2023 Milestones

In 2023, the United States consumed 94 trillion British thermal units (squares) of energy, down 1% from the previous year. According to the Monthly Energy Review, fossil fuels — oil, natural gas, and coal — accounted for almost 83% of total energy consumption, while nonfossil fuels, including renewables and nuclear, made up the remaining 17%. Oil maintained its position as the nation’s most consumed fuel for the 73rd consecutive year, and for the first time in about 140 years, renewables surpassed coal in energy consumption.

Looking back through the history of the United States, energy use has evolved considerably. When the Declaration of Independence was signed in 1776, wood was the primary source of energy, used for heating, cooking, and lighting. Wood remained the dominant source of energy until the late 19th century, when coal took over. Although the early use of water power for milling operations is not well documented, such mills were common in the early history of the United States. Industrial use of water power began in 1880, when it was used to power lamps in a chair factory in Grand Rapids, Michigan. The first hydroelectric plant selling electricity to the public opened in 1882 on the Fox River near Appleton, Wisconsin.

Renewable energy didn’t gain significant traction in the U.S. energy landscape until recent decades. In 2016, biofuels surpassed wood as the most consumed renewable energy source. In the 1980s, the United States began using more ethanol blended with petroleum gasoline, and later incorporated biodiesel and renewable diesel into petroleum diesel. Renewable diesel, which can replace petroleum diesel, has become more popular, surpassing biodiesel consumption for the first time in 2022. Electricity generation from carbon-free sources such as wind and solar has also grown rapidly in recent years. In 2022, renewable energy consumption in the U.S. surpassed nuclear energy for the first time since 1984. Nuclear energy consumption in the U.S., which began in the late 1950s, has remained relatively flat since the early 2000s.

Coal was the primary source of energy in the U.S. for about 65 years, from 1885 until 1950, when it was surpassed by oil. Coal was used for a variety of purposes, including home heating and transportation, but since the 1960s, almost all coal consumed in the U.S. has been used to generate electricity. Oil has been the most widely consumed energy source since 1950, widely used in transportation, industrial chemicals, and plastics. Natural gas, once considered a byproduct of oil production, has become a primary source of energy used for heating and electricity. The availability of natural gas has skyrocketed thanks to advances in U.S. drilling technology, and its consumption nearly equaled that of oil in 2020, when the COVID-19 pandemic reduced energy use in transportation.

In 2023, U.S. renewable energy consumption rose 2% from a year earlier, to a record 8.2 quadrillion. The increase was largely driven by increased use of biofuels for transportation and solar power for electricity generation. U.S. wind power consumption, by contrast, fell for the first time in 25 years. Coal use fell to 8.2 quadrillion, its lowest level since about 1900, largely because of reduced use of coal for electricity generation. Nuclear use rose slightly to 8.1 quadrillion, largely because of the new Vogtle Unit 3 reactor in Georgia, which began operating in July 2023.

Oil consumption in 2023 totaled 35.4 quadrillion, remaining below the 2005 peak. Most of the oil-based energy was used in transportation, despite the growing adoption of electric vehicles. Natural gas consumption reached a record 33.6 quadrillion, largely due to its increased use in electricity generation. Since 2018, the power sector has been the largest consumer of natural gas in the U.S.

To compare different types of energy, British Thermal Units (BTUs) are used as a common unit of heat. From the publication of 2023 data, the methodology for converting electricity generated by non-combustible renewables to BTUs has changed, which has affected the assessment of when renewable energy use will overtake coal use. Under the new captured energy approach, renewable energy will overtake coal use in 2023 for the first time since around 1885, whereas under the previous fossil fuel equivalence approach this milestone was reached in 2019.

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