Since the beginning of the 21 st century, the U.S. energy sector has transformed from a situation of declining production, especially of oil and natural gas, to one in which the United States is a growing producer. U.S. Energy Profile

The United States is the second largest producer and consumer of energy in the world, behind China. While oil has remained at almost 40% of the fuel mix, natural gas and renewables have increased in both percentage and absolute terms at the expense of coal. Nuclear generation has stayed flat. For example, in 2017, as a percentage of total U.S. energy production, approximately 24% of crude oil and 13% of natural gas gross withdrawals came from federal lands. Oil and Natural Gas on Federal Lands

Oil production fluctuated year-to-year on federal lands from 2008 to 2017 but overall it increased by 47% over the 10-year period. However, because crude oil production on nonfederal lands doubled over the decade (primarily due to improved extraction technology, favorable geology, and the ease of leasing), the share of total U.S. crude oil production from federal lands fell from its peak of nearly 36% in 2009 and 2010 to about 24% in 2017. The share of gross natural gas withdrawals from federal lands fell from almost 25% in 2008 to 13% in 2017. Coal production on federal lands has consistently accounted for about 40% of total U.S. coal production over the past decade. This period was consistent with increasing oil import dependence and declining energy security. Since prices peaked in 2008, domestic gas production has risen significantly. Since 2005, U.S. natural gas production rose every year until 2016, even as prices declined. Low natural gas prices, due to the growth of domestic gas resources, contributed to a significant rise in the use of natural gas for electric power generation. The U.S. industrial sector increased its consumption of natural gas by 16% between 2010 and 2017, and the sector is expected to account for the majority of growth in natural gas consumption through 2050. The electricity infrastructure of the United States is aging, and uncertainty exists around how to modernize the grid, and what technologies and fuels will be used to produce electricity in the future. Unresolved questions about transmission and reliability of the grid also are arising due to potential cybersecurity threats as well as continuing interest in harnessing renewable energy and other low carbon sources of electricity. Concerns about reliability and electricity prices are complicated by environmental regulations and the rising production of electric power from unconventional resources such as shale gas. As a result, fossil fuels (coal and natural gas) have accounted for about two-thirds of electricity generation since 2000. With growth in demand for electricity having been essentially flat for many years, the need for new power plants has been delayed in many parts of the country. The projections for future demand growth in most regions of the United States are declining. Coal Reserves and Production

The United States has the largest coal reserves and resources in the world. While renewable energy is currently a relatively small portion of the total U.S. energy sector, renewables production and consumption have increased since 2000. Unlike other energy commodities, such as crude oil, renewable energy is available in a variety of distinct forms that use different conversion technologies to produce usable energy products (e.g., electricity, heat, and liquid fuels). As a result of these state and federal programs and incentives, in addition to technology cost declines and conversion efficiency improvements, the use of non-hydro renewable sources of energy to generate electric power in the United States increased considerably between 2001 and 2017. As a result, the amount of new power generation capacity needed each year has declined.
Since the start of the 21st century, the U.S. energy system has seen tremendous changes. Technological advances in energy production have driven changes in energy consumption, and the United States has moved from being a growing net importer of most forms of energy to a declining importer—and possibly a net exporter in the near future. The United States remains the second largest producer and consumer of energy in the world, behind China.
The U.S. oil and natural gas industry has gone through a "renaissance" of production. Technological improvements in hydraulic fracturing and horizontal drilling have unlocked enormous oil and natural gas resources from unconventional formations, such as shale. Oil has surpassed levels of production not seen since the 1970s. Natural gas has set new production records almost every year since 2000. In conjunction with the rise in oil and natural gas production, U.S. production of natural gas liquids has also increased. The rise in production of these fuel sources has also corresponded with increased consumption and exports of each.
The rise in U.S. oil and natural gas production has taken place mostly onshore and on nonfederal lands. Crude oil production from nonfederal land has doubled over the past decade. While production on federal land has increased, it has not grown as fast as oil production on nonfederal land, causing the federal land share of total U.S. crude oil production to fall from its peak of nearly 36% in 2009 to about 24% in 2017. U.S natural gas production shifted even more dramatically, with total U.S. dry production growing 33% since 2008, while gross withdrawals on federal lands declined by almost 32% over the same time period. The federal land share of total gross withdrawals decreased from 25% in 2008 to 13% in 2017.
The electric power industry is transforming. Growth in demand for electricity has essentially been flat for many years, and the amount of new power generation capacity needed has declined each year in many parts of the country. The projections for future demand growth in most regions of the United States are declining. Natural gas edged out coal to become the primary electric generation fuel in 2016 and the growth in wind and solar energy has shown little sign of abating. The electricity infrastructure of the United States is aging. Uncertainty exists about how to modernize the grid and what technologies and fuels will be used to produce electricity in the future. Unresolved questions about transmission and reliability of the grid are arising due to potential cybersecurity threats and continuing interest in renewable energy and other low carbon sources of electricity. Concerns about reliability and electricity prices are complicated by environmental regulations, the intermittent nature of wind and solar power, and the rising availability of natural gas for electric power production.
Renewables production and consumption have increased since 2000. As a source of total primary energy, renewable energy increased 80% between 2000 and 2017. Unlike some other energy commodities (e.g., crude oil), renewable energy is available in a variety of distinct forms that use different conversion technologies to produce usable energy products (e.g., electricity, heat, and liquid fuels). Therefore, it is important to distinguish between renewable fuel sources and uses.
The United States has the largest coal resources in the world. Coal is used primarily for electricity generation. Although its prices have stayed low, coal has faced increasing competition from natural gas and renewables. U.S. coal consumption peaked in 2007 and has since declined by 39%. Coal currently supplies approximately 30% of electricity generation. Nuclear-generated electricity output has stayed flat during the same time period, and faces significant challenges as a future source of electric power generation.
Energy production and consumption have been issues of interest to Congress for decades. Current topics of concern to Congress include independence, exports, imports, prices, security, infrastructure, efficiency, the environment, and geopolitics. Legislation has been introduced in both houses of Congress to address these issues and others.