US energy production falls after six consecutive years of increases

U.S. energy production totaled 84.1 quadrillion British thermal units (Btu) in 2016, a four percent decrease from 2015’s level and the first annual reduction since 2009, according to the U.S. Energy Information Administration (EIA).

The production decline coincided with an increase in both total energy exports and imports in 2016.

Fossil fuel production decreased by seven percent with an 18 percent decrease in coal production, which
fell to its lowest level since 1978, due to relatively low natural gas prices and relatively flat electricity demand. Petroleum production fell by five percent and natural gas production saw a decrease of two percent.

Renewable energy production increased by seven percent in 2016 after a slight decrease in 2015. Wind energy accounted for approximately half of that increase, solar energy for approximately a quarter and hydroelectricity for the other quarter.

Total U.S. exports rose by seven percent from 2015 to 2016. Gross exports of natural gas from the United States surpassed those of coal in energy-equivalent terms for the first time on record.

The growth in gross imports outpaced the increase in gross exports with an increase of 6 percent after ten years of consecutive reductions. EIA projects that the United States will become a net exporter of natural gas on an annual basis by 2018, due to growing domestic production and additional natural gas export capacity, particularly to Mexico.