Texas led the nation in energy consumption in 2023, according to the U.S. Energy Information Administration . The EIA reported Texas' total energy consumption was twice as much as California's , the second-highest energy-consuming state, and more than three times as much as third-place Florida . The EIA's State Energy Data System finds U.S. total energy use peaked in 2007. Between 2007 and 2023, Texas energy consumption rose 21% while U.S. energy use decreased 5%.
According to the SEDS, consumption in Texas was higher for every sector — commercial, residential, transportation and industrial. Texas also consumed more coal, natural gas and petroleum than any other state. It ranked second only to California in renewable energy consumption.
"The primary reason that Texas energy consumption is increasing so rapidly is because the economy has been growing well in excess of other areas," explained economist Ray Perryman .
Perryman told the Reporter-Telegram that the state has a dominant role in most major industrial sectors and is poised for future expansion. Texas has also experienced rapid population growth, which plays a role in energy demand.
"All of that to say that, on the whole, the high levels of energy consumption are reflective of positive developments across the state," he said. "Having said that, the expansion does heighten the pressure to assure adequate energy resources in the future. In the summer of last year, the state set a record of about 83 gigawatts of peak power usage. With the rapid expansion of artificial intelligence, other data centers, chip manufacturing, crypto mining and other energy-intensive sectors, this amount is expected to approximately double by 2030.
"It will require billions of dollars in investment in both generation and transmission resources to meet these requirements. While growth is beneficial and, indeed, essential for economic progress, it also brings the need to assure that supporting infrastructure is available."
Between 2007 and 2023, Texas' industrial sector energy use grew 28%, while U.S. total industrial sector energy use declined 3%. The industrial sector, which includes Texas' energy-intensive chemical manufacturing, oil and natural gas extraction, petroleum refining and agriculture industries, is the state's largest energy-consuming sector, according to the EIA report.
Between 2007 and 2023, the population in Texas grew 29%, significantly more than the national average of 12%. Texas' energy use increased by 18% in the commercial sector, 15% in the transportation sector and 3% in the residential sector during the same period partly because of the state's population growth.
Unlike most states, nearly all of Texas' electricity grid is disconnected from the nation's regional grids, making Texas largely dependent on its own resources to meet in-state electricity demand. Between 2007 and 2023, Texas' electric power sector energy consumption increased 6% to help support population growth, while U.S. total electric power demand increased 3% during the same period.
By contrast, total energy use declined 14% in California and 2% in Florida between 2007 and 2023, in part because of decreased industrial and electric power sector energy use. During the same period, industrial sector energy consumption decreased by 20% in California , partially because of reduced oil and natural gas extraction activities.
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