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price volatility combined with the fact that the vast majority of all natural gas reserves are located in Russia and the Middle East poses economic and political challenges.6 U.S. Energy Production and Consumption Although Americans consist of only 4.5 percent of the world population, they consume approximately 23 percent of the world’s energy annually7 – 101.9 quadrillion British thermal units (Btu) in 2007.8 Despite producing approximately 73 quadrillion Btu of energy annually, domestic production only represents 71 percent of the total energy supply. The remaining 29 percent is imported from foreign countries in different forms and portions, mostly imported oil.9 Past and projected U.S. energy production and consumption are shown in Figure 2.1. Figure 2.1 Total U.S. Energy Production and Consumption The sustainability of continued dependence on hydrocarbons is also a concern, as increasing demand for hydrocarbons globally presents the United States with challenges to the adequacy of its energy supply. This supply problem is compounded by a high level of demand for, and inefficient use of, energy. The United States currently requires more energy than it produces domestically, and is extremely wasteful in how it generates, distributes, and uses energy. Future projections for national energy supply and demand assume continued population growth, higher prices for crude oil and natural gas, growth in the use of renewables, 7PDF Image | Shaping Energy Technology Transition
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