US Energy Production Surges in 2023, Coal Consumption Plummets
Key Ideas
- In 2023, US energy production hit a record high of nearly 103 quadrillion Btu, outpacing consumption by the widest margin since 1949.
- Coal consumption in the US fell by 17% as the nation's power grid transitions to other sources, marking the lowest level in over a century.
- US law firm Troutman Pepper emphasizes the importance of clarity on tax credits to make clean hydrogen a viable energy source, crucial for decarbonisation.
- The Biden administration has allocated $7bn for the construction of hydrogen hubs in 16 states, aiming to produce 50 million tonnes of clean hydrogen by 2050.
The US experienced a significant surge in energy production in 2023, reaching nearly 103 quadrillion Btu, outpacing consumption by a record margin since 1949, according to the Energy Information Administration (EIA). This growth was primarily driven by substantial increases in natural gas and crude oil production, with gas production rising by 4% and crude oil production by 9% from the previous year.
However, the consumption of coal in the US plummeted by 17%, marking its lowest level in over a century as the nation's power grid transitions to alternative sources of energy. Renewable energy production saw a modest 1% increase, with solar energy witnessing a 15% rise while wind production decreased by 2%.
The importance of clean hydrogen as a key player in decarbonisation efforts was highlighted by research from US law firm Troutman Pepper, stressing the necessity for clear tax credits for the viability of clean hydrogen as an energy source. The Biden administration's initiative to grant $7bn for the development of hydrogen hubs in 16 states aims to significantly boost clean hydrogen production, targeting 50 million tonnes by 2050.
GlobalData forecasts indicate that renewables are set to hold a 55% share of energy generation in North America by 2035, with solar PV and onshore wind contributing significantly to this shift towards cleaner energy sources. Hydropower will remain a prominent renewable energy source, but with the addition of solar, wind, and biopower, renewable generation is expected to reach 68% by 2035.
Topics
Utilities
Renewable Energy
Clean Energy
Biden Administration
Decarbonisation
Hydrogen Infrastructure
Energy Production
Tax Credits
Coal Consumption
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