Domestic Consumption Expected to Grow 0.3 Percent Annually
WASHINGTON — U.S. energy consumption has slowed recently and is not anticipated to return to growth levels seen in the second half of the 20th century, according to a report by the U.S. Energy Information Administration (EIA). The case projections referenced by the EIA in the Annual Energy Outlook 2015 (AEO2015) show domestic consumption is expected to grow at 0.3 percent annually through 2040, less than half the rate of population growth. Energy used in homes is essentially flat, and transportation consumption will decline slightly, meaning that energy consumption growth will be concentrated in U.S. businesses and industries.
Near-zero growth in energy consumption is a recent phenomenon, and there is substantial uncertainty about the main drivers of consumption as the U.S. continues to recover from the latest economic recession and resumes more normal economic growth. EIA’s analysis in the AEO2015 includes several cases with various assumptions about macroeconomic growth, world oil prices, and domestic energy resource availability.