EIA: US energy spending increased by more than 20% in 2022

More money was spent on energy in the US on an inflation-adjusted basis in 2022 than in all but two years in the EIA's records. Higher US energy prices in 2022 compared with 2021, particularly higher petroleum prices for transportation, caused most of the increase in total US energy expenditures.

Petroleum and natural gas prices were relatively high in 2022 in part due to Russia’s full-scale invasion of Ukraine. Prices have since fallen as global energy markets have adjusted to new trade patterns for crude oil and natural gas production has set new records in the US.

The EIA's energy expenditures data represent the total amount of money spent in the US by end users of petroleum products, electricity, natural gas, and other fuels in the residential, commercial, industrial, and transportation sectors combined. The EIA calculates expenditures as energy consumption multiplied by the average price paid by end users for those fuels.

In 2022, US inflation-adjusted energy expenditures per capita increased 22%, totalling US$5200. Alaska had the highest per-capita energy expenditures at US$13 100, followed by Wyoming at US$11 200. The three states with the lowest per-capita energy expenditures were New York at US$4100, and Maryland and Florida at US$4000. The District of Columbia had the lowest energy expenditures per capita at US$3900.

Per-capita US energy expenditures on an inflation-adjusted basis were higher in 2022 than in all but eight years in the EIA's records.

US energy expenditures accounted for 6.7% of nominal gross domestic product (GDP) in 2022, compared with 5.6% in 2021. Energy expenditures as a share of GDP compares the total amount of money spent on end-use energy in the US to the value of all goods and services in the US economy.

US end-use energy expenditures for petroleum totalled US$1 trillion in 2022, a 29% increase from 2021 when adjusted for inflation. The rise is primarily due to high prices for motor gasoline, distillate fuel oil, and jet fuel in the transportation sector. Together, the three fuels accounted for 96% of petroleum consumed in the transportation sector in 2022. Petroleum products used for purposes other than generating electricity made up the largest share (61%) of US end-use energy expenditures in 2022.

US inflation-adjusted energy expenditures for the end use of natural gas totalled US$179 billion in 2022, a 26% increase from 2021. Natural gas used for purposes other than generating electricity, such as heating and cooling homes and buildings, accounted for 10% of all of the nation’s end-use energy expenditures in 2022.

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