Energy Consumption. U.S. Energy Consumption by Sector, Energy Use. Who Uses Energy? Residential and Commercial Sectors

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1 OFF Energy Consumption Energy Use Think about how you use energy every day. You wake up to an aarm cock. You take a shower with water warmed by a hot water heater. You isten to music on the radio as you dress. You catch the bus to schoo. That s just the energy you use before you get to schoo! Every day, the average American uses about as much energy as is stored in about seven gaons of gasoine. Energy use is sometimes caed energy consumption. Who Uses Energy? The U.S. Department of Energy divides energy users into different categories: residentia, commercia, industria, eectric power, and transportation. These are caed the sectors of the economy. Residentia and Commercia Sectors Any pace where peope ive is considered a residentia buiding. Commercia buidings incude offices, stores, hospitas, restaurants, and schoos. Residentia and commercia buidings are often grouped together because they use energy in the same ways for heating and cooing, ighting, heating water, and operating appiances. Together, homes and buidings consume amost 11 percent of the energy used in the United States today. In the ast 30 years, Americans have reduced the amount of energy used in their homes and commercia buidings. We sti heat and coo rooms, and heat hot water. We have more home and office machines than ever. Most of the energy savings have come from improvements in technoogy and in the ways the equipment is manufactured. Heating and Cooing It takes a ot of energy to heat rooms in winter and coo them in summer. Forty-eight percent of the energy used in the average home is for heating and cooing rooms. The three fues used most often for heating are natura gas, eectricity, and heating oi. Today, more than haf the nation s homes use natura gas for heating. Most natura gas furnaces in the 1970s and 1980s were about 60 percent efficient. That means they converted 60 percent of the energy in the natura gas into usabe heat. New gas furnaces are designed to be up to 98 percent efficient. The second eading fue for home heating is eectricity. Eectricity aso provides amost a of the energy used for air conditioning. The efficiency of heat pumps and air conditioners has increased more than 50 percent in the ast 35 years. Heating oi is the third eading fue used for home heating. In 1973, the average home used 1,300 gaons of oi a year. Today, that figure is about 517 gaons, a significant decrease. New oi furnaces burn oi more ceany and operate more efficienty. In the future, we may see more use of renewabe energy sources, such as geotherma and soar energy, to heat and coo our homes and workspaces. U.S. Energy Consumption by Sector, 2015 TRANSPORTATION 28.3% Top Transportation Sources: Biomass INDUSTRIAL 22.0% Top Industria Sources: Propane COMMERCIAL 4.2% Top Commercia Sources: Propane *Tota does not equa 100% due to independent rounding. RESIDENTIAL 6.5% Top Residentia Sources: Biomass ELECTRIC POWER 38.9% Top Eectric Power Sources: Coa Naturas Gas Uranium The residentia, commercia, and industria sectors use eectricity. This graph depicts their energy source consumption outside of eectricity. Lighting Homes and commercia buidings aso use energy for ighting. The average home spends five percent of its utiity costs on ighting. Schoos, stores, and businesses use between 9 and 10 percent of their utiity costs for ighting. Most commercia buidings use fuorescent ighting. It costs more to insta, but it uses a ot ess energy to produce the same amount of ight. Many homes sti use the type of ight bub invented by Thomas Edison over 100 years ago. These incandescent bubs are not very efficient. Ony about 10 percent of the eectricity they consume is converted into ight. The other 90 percent is converted to heat. Due to the Energy Independence and Security Act of 2007, most traditiona, inefficient incandescent ight bubs have been phased out and are no onger for sae. Consumers can choose from severa more efficient bub options as repacements. Energy-saving incandescent, or haogen, bubs are more expensive than traditiona incandescent, but use 25 percent ess energy and ast three times as ong. Compact fuorescent ight bubs (CFLs) can be used in ight fixtures throughout homes. CFLs cost ess to use because they ast onger and use ess energy than incandescent bubs. Even more efficient than CFLs, ight emitting diodes (LEDs) are avaiabe. LEDs have become a very affordabe option for ighting in homes and businesses, and use even ess energy than CFLs. LEDs ast 25 times onger than a traditiona incandescent, are more durabe than the other options avaiabe on the market, and have many technica appications The NEED Project 8408 Kao Circe, Manassas, VA

2 Appiances Over the ast 100 years, appiances have changed the way we spend our time at home. Chores that used to take hours can now be done in minutes by using eectricity instead of human energy. In 1990, Congress passed the Nationa Appiance Energy Conservation Act, which requires appiances to meet strict energy efficiency standards. As a resut of this Act, home appiances have become more energy efficient. Water heaters, refrigerators, cothes washers, and dryers a use much ess energy today than they did 25 years ago. Appiance Efficiency Ratings When you buy an appiance, you shoud pay attention to the yeow EnergyGuide abe on every appiance. This abe tes you the Energy Efficiency Ratio (EER) of the appiance. The EER tes how much it costs to operate the appiance. Payback Period Whether you buy a furnace, hot water heater, refrigerator, or other home appiance, you must choose the best bargain. Since most high-efficiency systems and appiances cost more than ess efficient ones, you have to know how much it wi cost to operate the appiance each year and how many years you can expect to use it. The payback period is the amount of time you must use a system or appiance before you begin to benefit from energy savings. For exampe, if you buy an efficient refrigerator that costs $100 more, but uses $20 ess eectricity each year, you woud begin saving money after five years. Your payback period woud be five years. Since refrigerators usuay ast ten years, you woud save $100 over the ife of the appiance and save natura resources. Lighting Efficiency 1879 Incandescent 14 Today s Efficient Haogen Incandescent 22 Today s CFL Today s LED Today s Fuorescent 22 Data: Madison Gas and Eectric ENERGYGUIDE LABEL U.S. Government Water Heater - Natura Gas Tank Size (Storage Capacity): 50 gaons MAXIMUM LUMENS PER WATT 70 Federa aw prohibits remova of this abe before consumer purchase. Estimated Yeary Energy Cost $240 xx Corporation Mode XXXXXXX $225 $275 Cost Range of Simiar Modes Your cost wi depend on your utiity rates and use. Cost range based ony on modes fueed by natura gas with a high first hour rating (above 75 gaons). Estimated energy cost based on a nationa average natura gas cost of $1.09 per therm. Estimated yeary energy use: 224 therms. ftc.gov/energy First Hour Rating (How much hot water you get in the first hour of use) very sma ow medium high 90 Gaons Washing Machine Payback Period Spending a itte bit more money on an energy efficient appiance coud save you severa hundred doars over the ifetime of the product. The payback period coud be shorter than you think! WASHER 1 WASHER 2 WASHER 3 Origina Cost $379 $497 $999 Estimated Annua Eectricity Use 427 kwh 160 kwh 102 kwh Price of Eectricity (per kwh) $0.12 $0.12 $0.12 Operating Cost per Year $51.24 $19.20 $12.24 Data: NEED anaysis of washing machine EnergyGuide abes COST OVER THE LIFETIME OF THE MACHINE $1,500 Washer 3 becomes more economica than Washer 1 after 16 years Washer 3 ORIGINAL COST: $999 $1,000 $500 $0 Washer 2 ORIGINAL COST: $497 Washer 1 ORIGINAL COST: $379 Washer 2 becomes more economica than Washer 1 after three years YEARS 46 Intermediate Energy Infobook

3 Industria Sector The United States is a highy industriaized country. We use a ot of energy. Today, the industria sector uses 22.0 percent of the nation s energy. Every industry uses energy, but six energy-intensive industries use most of the energy consumed by the industria sector. However, advanced technoogies aow industries to do more with ess energy. Petroeum Refining The United States uses more petroeum than any other energy source. Petroeum provides the U.S. with about 38.8 percent of the energy we use each year. Petroeum can t be used as it comes out of the ground. It must be refined before it can be used. Oi refineries use a ot of energy to convert crude oi into gasoine, diese fue, aviation fue, heating oi, chemicas, and other products. About a quarter of the energy used by the industria sector is for refining petroeum. Refineries today use about 30 percent ess energy than they did in the 1970s, but rising fue costs provide a chaenge in maintaining reductions. Stee Manufacturing The stee industry uses energy to turn iron ore and scrap meta into stee. Hundreds of the products we use every day are made of stee. It is a very hard, durabe meta and it must be heated to very high temperatures to manufacture it. Producing those high temperatures takes a ot of energy. The cost of energy in the stee industry is 15 percent of the tota cost of making the stee. Most of this energy comes from coa and natura gas, or eectricity generated from those sources. Since 1990, the stee industry has reduced its energy consumption by 30 percent per ton of stee. New technoogy has made stee stronger so that ess stee is needed for many uses. For exampe, the Wiis Tower, formery the Sears Tower, in Chicago coud be buit today using 35 percent ess stee. The use of recyced stee aso saves energy. It requires 75 percent ess energy to recyce stee than to make it from iron ore. Today, two-thirds of new stee is made from recyced scrap, making stee the nation s eading recyced product. U.S. Industria Energy Consumption by Source, 2015 NATURAL GAS* 44.0% COAL 6.4% BIOMASS 10.6% OTHER RENEWABLES 0.2% PETROLEUM* 38.8% *Propane consumed by industry is incuded in petroeum and natura gas consumption figures. PETROLEUM REFINERY Image courtesy of BP STEEL PRODUCTION Auminum Manufacturing Auminum is a very ight-weight, versatie meta. We use auminum to make soft drink cans, buiding materias, car parts, and many other products. It takes huge amounts of eectricity to make auminum from bauxite, or auminum ore. The cost for this energy is about one-third the tota cost of manufacturing auminum. Today, it takes 20 percent ess energy to produce a pound of auminum than it did 20 years ago. Using recyced auminum requires about 95 percent ess energy than converting bauxite into meta The NEED Project 8408 Kao Circe, Manassas, VA

4 Paper Manufacturing The United States uses enormous amounts of paper every day newspapers, books, bags, and boxes are a made of paper. Energy is used in every step of paper making. Energy is used to chop, grind, and cook the wood into pup. More energy is used to ro and dry the pup into paper. The paper and pup industry uses 30 percent ess fossi fues today than in the past, mainy because of better technoogy and increased use of wood waste to generate eectricity on-site. Many industries have owered energy use by using recyced materias. In the paper and pup industry, it is not aways cheaper to use recyced paper because it costs money to coect, sort, and process the waste paper. Recycing has other benefits, though. It reduces the amount of paper in andfis and means fewer trees must be cut. Chemica Manufacturing Chemicas are an important part of our ives. We use chemicas in our medicines, ceaning products, fertiizers and pastics, as we as in many of our foods. The U.S. has the word s argest chemica industry. Chemica manufacturing uses amost one-quarter of the energy consumed by the industria sector. The chemica industry uses energy in two ways. It uses coa, oi, and natura gas to power the machinery to make the chemicas. It aso uses petroeum, propane, and natura gas as major sources of hydrocarbons from which the chemicas are made. New technoogy has increased energy efficiency in the chemica industry by more than 50 percent in the ast 35 years. Cement Manufacturing Some peope think the United States is becoming a nation of concrete. New roads and buidings are being buit everywhere, every day. We use ots of concrete. Concrete is made from cement, water, and crushed stone. A ot of energy is used in making cement. The process requires extremey high temperatures up to 1,800 degrees Cesius (3,400 F). Cement pants have reduced their energy consumption by more than one-third using innovative waste-to-energy programs. Many of the cement pants in the U.S. use waste fues to meet between 20 and 70 percent of their energy needs. These wastes, such as printing inks, dry ceaning fuids, and used tires, have high energy content. For exampe, the energy content of one pound of tires is greater than one pound of coa. This industry is using energy that woud otherwise be wasted in a andfi. Reduction in Manufacturing Energy Use, With advancements in technoogy and increased efficiency and conservation measures, the tota U.S. manufacturing energy consumption decreased by 17% from PAPER RECYCLING 22,576 21, Image courtesy of Nationa Renewabe Energy Laboratory 18, Intermediate Energy Infobook

5 Transportation Sector The United States is a big country. The transportation sector uses more than 28 percent of the energy suppy to move peope and goods from one pace to another. The Automobie Americans ove automobies. We ove to drive them. We don t want anyone teing us what kind of car to buy or how much to drive it. Forty years ago, most Americans drove big cars that used a ot of gas. The gas shortages of the 1970s didn t change Americans driving habits much. What did change was the way automobies were buit. Automakers began making cars smaer and ighter. They buit smaer and more efficient engines. One reason for the changes was that the government passed aws requiring automobies to get better gas mieage. With new technoogies, cars now trave more mies on each gaon of gas. Today, new passenger cars get an average of 35 mies per gaon. If automakers hadn t made these changes, we woud be using 30 percent more fue than we do today. In 1973, there were 125 miion vehices on the road. Today, there are more than 240 miion vehices. There are more cars being driven more mies than ever before. Around fifty percent of the passenger vehices sod in 2013 were sport utiity vehices and ight trucks. With the recent fuctuations in fue prices, however, demand for these big vehices has dropped somewhat, whie demand for hybrids and other fue efficient vehices has increased. Commercia Transportation Passenger cars and ight trucks consume about two-thirds of the fue we use for transportation. Commercia vehices consume the rest. These vehices trains, trucks, buses, and panes carry peope and products a across this vast country. Commercia vehices have aso become more fue efficient in the ast 40 years. Average Fue Economy of New Passenger Cars Trucks use more fue than any other commercia vehice. Amost a products are, at some point, transported by truck. Trucks are big and don t get good gas mieage. They usuay have diese engines and can trave farther on a gaon of diese fue than they coud on a gaon of gasoine. Trains carry most of the freight between cities. In the ast 30 years, trains have improved their fue efficiency by 55 percent. Trains are ighter and stronger and new ocomotives are more efficient. Airpanes move peope and products a over the country. In 2015, more than 800 miion passengers few on panes. Airines are twice as efficient today as they were 30 years ago. Fue is one of the biggest operating costs for airines. Making panes more energy efficient is very important to airines. Mass Transit is pubic transportation for moving peope on buses, trains, ight rai, and subways. In 1970, nine percent of workers who commuted to work used pubic transit systems. Today, ony five percent trave by mass transit. Why is this? One reason is that Americans ove their cars. Another is that peope have moved from cities to suburbs and many businesses have foowed. Most mass transit systems were designed to move peope around cities or from suburbs to cities. Very few systems move peope from suburb to suburb. Most peope worry about air poution from auto exhaust. They aso worry about traffic congestion. Congress has passed egisation supporting pubic transit. If pubic transit is convenient and the cost is reasonabe, peope may eave their cars at home. TRAFFIC CONGESTION 60 Mies per Gaon 55.3* *By 2025 new mode cars and ight trucks may have to meet a 55.3 mpg fue economy standard. Data: U.S. Department of Energy 2017 The NEED Project 8408 Kao Circe, Manassas, VA