Annual Energy Outlook 2006 with Projections to 2030 - Usinfo.org

Energy DemandPetroleum and Electricity LeadGrowth in Energy ConsumptionFigure 33. Delivered energy use by fuel, 1980-2030(quadrillion Btu)60504030HistoryProjectionsPetroleumU.S. Primary Energy Use Climbs to134 Quadrillion Btu in 2030Figure 34. Primary energy consumption by sector,1980-2030 (quadrillion Btu)60HistoryProjectionsResidentialCommercial50IndustrialTransportation403020Natural gasElectricity2010Coal0Renewables1980 1995 2004 2015 20301001980 1990 2000 2010 2020 2030Delivered energy use (excluding losses in electricitygeneration) grows by 1.1 percent per year on averagefrom 2004 through 2030. Petroleum use, whichmakes up more than one-half of total delivered energyuse, grows at about the same rate (Figure 33). Thefastest growth in petroleum use is projected for transportationenergy use. Although high fuel prices tendto restrain travel by passenger and commercial vehicles,economic growth and more travel per capitaincrease demand for gasoline and diesel fuel, assumingno changes in consumer behavior.Past trends in electricity consumption are expected tocontinue, with future increases resulting from stronggrowth in commercial floorspace, continued penetrationof electric appliances in the residential sector,and increases in industrial output. Natural gas usegrows more slowly than overall delivered energydemand, in contrast to its more rapid growth duringthe 1990s. As a result, natural gas meets 21 percent oftotal end-use energy requirements in 2030, comparedwith 24 percent in 2004.End-use demand for energy from marketed renewables,such as wood, grows by 1.0 percent per year.Biomass used in the industrial sector, mostly as abyproduct fuel in the pulp and paper industry, is thelargest source of renewable fuel for end use. Demandfor purchased wood for home heating remains steadyin the projections, with potential growth constrainedby its limited availability and inconvenience. Energyfrom nonmarketed renewables, such as solar and geothermalheat pumps, more than doubles over the projectionperiod but is less than 1 percent of deliveredresidential energy use throughout the period.Primary energy use (including electricity generationlosses) increases by one-third over the next 26 years(Figure 34). The projected growth rate of energy consumptionin the AEO2006 reference case approximatelymatches the average from 1981 to 2004.Demand for energy in the early 1980s fell in the faceof recession, high energy prices, and changing regulations;but beginning in the mid-1980s, declining realenergy prices and economic expansion contributed toa marked increase in energy consumption. The longtermupward trend in energy consumption is projectedto continue in the reference case, with growthslowed somewhat by rising energy prices.The most rapid growth in sectoral energy use is in thecommercial sector, where services continue to expandmore rapidly than the economy as a whole. Thegrowth rate for residential energy use is about halfthat for the commercial sector, with demographictrends being a dominant factor. Transportationenergy use grows at a slightly slower rate than it hassince 1980, despite high fuel prices. Increases intravel by personal and commercial vehicles are onlypartially offset by vehicle efficiency gains. Primaryenergy use in the industrial sector grows more slowlythan in the other sectors, with efficiency gains, higherreal energy prices, and shifts to less energy-intensiveindustries moderating the expected growth.Alternative cases have been developed to explore thekey uncertainties in the forecast, including two economicgrowth cases and two world oil price cases.Detailed projections and comparisons with the referencecase are provided in Appendixes B, C, and D.66 Energy Information Administration / Annual Energy Outlook 2006