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U.S. ENERGY INFORMATION ADMINISTRATION
WASHINGTON DC 20585

FOR IMMEDIATE RELEASE
July 7, 1999

Annual Energy Review Now Chronicles 50 Years of Changes in U.S. Energy

The last half-century witnessed radical shifts in America's energy profile. Fifty years ago the Nation was nearly self- sufficient in petroleum and was a net exporter of natural gas. Only 17 percent of our coal was used to produce electricity. Nuclear electricity was just a gleam in physicists' eyes. Now, on the eve of the new century, America imports more than half of its petroleum and 15 percent of its natural gas. Ninety percent of our coal is consumed to create electricity, and nuclear electricity accounts for about a fifth of our electricity supply.

These are a few of the changes chronicled in the Annual Energy Review 1998, a statistical history of U.S. energy since 1949 that was released today by the Energy Information Administration (EIA). Other salient trends and milestones in the report include:

* The number of Americans grew by 82 percent from 1949 through 1998, but energy consumption expanded by 194 percent. As energy became increasingly accessible, the average amount used per person rose 62 percent over the period. At the same time, the amount of energy required to produce a dollar's worth of goods and services fell by 42 percent.

* Throughout the period, the industrial sector was the largest energy consuming sector of the economy; however, its share of the total fell while the other sectors' shares grew. In 1949, the sector shares were: 46 percent industrial; 29 percent residential and commercial; and 25 percent transportation. In 1998, the shares were: 38 percent industrial; 36 percent residential and commercial; and 27 percent transportation.

* Coal use dominated the industrial sector in the early years but gave way to natural gas and petroleum, which became the leading resources in the sector. Electricity (and the generation, transmission, and distribution losses associated with its production) grew rapidly as a source of energy in the industrial sector.

* Coal was also the leading fuel consumed in the residential and commercial sector at the beginning of the period, but its usage rapidly fell to only incidental levels. Natural gas became a major resource and electricity's usage (and its associated losses) soared.

* Petroleum's domination of the transportation sector rose from 77 percent of all resources used in the sector in 1949 to 97 percent in 1998.

* The U.S. petroleum industry evolved from one of near self-sufficiency to heavy dependence on imports. U.S. oil production peaked at 11 million barrels per day in 1970. In 1998, the Nation produced 8 million barrels of oil per day, while it consumed 19 million barrels per day. Imports of 10 million barrels per day filled the gap.

* Natural gas supply and demand were in relative balance in the United States until the mid-1980s when a production-consumption gap developed. In 1998, U.S. production was 19 trillion cubic feet; consumption was 21 trillion cubic feet; and imports were 3 trillion cubic feet. While the number of wells producing natural gas in the United States grew 263 percent over the 50 years, the average output per well fell by 55 percent.

* In 1949, the United States exported 7 percent of its coal production; in 1998, the Nation still exported 7 percent of its coal production. The industry shifted from 75 percent underground mines and 25 percent surface mines in 1949 to 39 percent underground and 61 percent surface in 1998. In 1949, only 8 percent of U.S. coal was produced west of the Mississippi; by 1998, 49 percent came from the West. Productivity rose from 0.7 short ton per miner hour in 1949 to 6.0 short tons per miner hour in 1998.

* Nuclear electric power did not exist in this country until 1957. The new industry expanded rapidly and, by 1995, reached a peak share of 22 percent of utilities' generation. The number of operable nuclear units peaked at 112 in 1990. As fewer new units came on line and old units began to shut down, the number of operable units fell to 104 in 1998.

The 1998 edition of the Annual Energy Review includes an updated and expanded introductory essay that puts U.S. energy use in historical perspective, as well as a glossary of energy-related terms. It is available electronically at: http://www.eia.doe.gov/emeu/aer/ on EIA's Internet Web Site. Printed copes of the report will be available later this month from the U.S. Government Printing Office, 202/512-1800, or through EIA's National Energy Information Center, 202/586-8800.

The report described in this press release was prepared by the Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy.  The information contained in the report and the press release should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization.

EIA Program Contact: Leigh Carleton, 202/586-1132
EIA Press Contact: National Energy Information Center, 202/586-8800, infoctr@eia.doe.gov

EIA-99-18

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