Katerina Swanson
Fossil fuel consumption and production have imposed massive environmental and economic costs. In 2006, American consumers and businesses spent $921 billion on fossil fuels, and in 2008, expenditures likely exceeded $1 trillion for the first time. The production and transport of fossil fuels routinely pollute the environment and occasionally cause catastrophic accidents, such as oil spills. Fossil fuel use also contributes to air pollution, which has severe health consequences, including respiratory ailments, cardiovascular and pulmonary diseases, and cancer. The true cost of fossil fuels is even higher when considering externalities such as societal, environmental, and health costs. The transition to renewable energy sources is crucial to reducing emissions and mitigating climate change, but it must be done intentionally to support communities dependent on the fossil fuel industry.
| Characteristics | Values |
|---|---|
| Global primary energy consumption in 2023 | Historic high |
| Percentage of fossil fuels in global energy consumption in 2023 | 82% |
| Percentage of renewable energy in global energy consumption in 2023 | 15% |
| Percentage increase in fossil fuel consumption from 2022 to 2023 | 1.5% |
| Percentage increase in CO2 emissions from 2022 to 2023 | 2% |
| Primary sources of fossil fuels | Petroleum, natural gas, and coal |
| Percentage of US primary energy production from fossil fuels in 2023 | 84% |
| Percentage of US energy consumption from oil | One-third |
| Percentage of US energy consumption from coal in 2020 | 19% |
| Percentage of US energy consumption from natural gas | One-third |
| US total annual energy production compared to consumption since 2019 | Higher |
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What You'll Learn
Fossil fuel consumption by country
Fossil fuels—oil, coal, and gas—remain the most widely used energy source globally, despite the increasing popularity of renewable energy. In 2017, 81% of the world's energy consumption came from these fuels, a figure that decreased only slightly to 81.5% in 2022. In 2023, fossil fuel consumption reached a new record high, driven largely by China and the US, which together accounted for almost half (47%) of global fossil fuel consumption. China consumed 140 exajoules of fossil fuels in 2023, while the US consumed 76 exajoules. India was the third-largest consumer, with 35 exajoules.
The US is the largest oil consumer, with over 19.1 million barrels consumed per day in 2022. In the same year, the US consumed 32.2 trillion cubic feet of natural gas. Russia is one of the most prominent players in the oil market, producing around 11.28% of the world's oil in 2021, and consuming 3.67 million barrels daily in the same year, accounting for 4% of the world's total consumption. Russia is also one of the largest consumers of natural gas, with 408 billion cubic meters consumed in 2022.
Other countries with notable fossil fuel consumption rates include Japan, which was the fifth-largest consumer in 2022, and South Korea, which was the seventh-largest global energy consumer in 2022. Germany is also a heavy consumer of fossil fuels, having consumed over 2 million barrels of oil per day and 2.3 exajoules of coal in 2022. Canada consumed upwards of 98 million metric tons of oil in 2022, as well as 390 petajoules of coal and 101 billion cubic meters of natural gas.
When it comes to per capita fossil fuel consumption, the US is far from the top. Countries like Equatorial Guinea, Estonia, Singapore, Qatar, Trinidad and Tobago, the United Arab Emirates, and Kuwait consume 10 or more tons of fossil fuels per person. Equatorial Guinea, for example, consumes 18 metric tons per person per year.
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Fossil fuel production by country
Fossil fuel production varies by country and is dependent on various factors, including natural resource availability, energy consumption, and economic growth. Here is a breakdown of fossil fuel production by country, focusing on oil, coal, and natural gas:
United States
The United States is a significant contributor to global fossil fuel production, accounting for 20% of the total output. In 2023, the US led the world in oil production for the sixth consecutive year, with shale oil fracking boosting its output since 2010. Texas and Pennsylvania are major gas-producing states, with these two states alone contributing 47% of the country's gas production. US oil production reached a record high in October 2023. The country also became a net petroleum exporter in 2020. However, US coal production has been declining, with a 47% decrease compared to 2011 levels, as the country transitions towards cleaner energy sources.
Russia
Russia is the second-largest producer of fossil fuels globally, and it is a major player in both oil and natural gas production and exports. In 2021, Russia was the biggest exporter of natural gas, sending an estimated 210 billion cubic meters of gas to Europe and China. About 80% of Russia's natural gas comes from operations in the Arctic region. Russia was also among the top three crude oil producers in 2021, along with the US and Saudi Arabia.
China
China has a complex relationship with coal. While coal's importance in China's energy mix has decreased over the years, from 70% in 2011 to 59% in 2018, the country's rapid economic growth has resulted in an overall steady coal usage. China's production of coal has slightly increased during this period.
Saudi Arabia
Saudi Arabia is a prominent member of OPEC (Organization of the Petroleum Exporting Countries), which collectively accounts for 35% of world oil production. In 2021, OPEC countries produced 1.5 billion tonnes of oil. Saudi Arabia was among the top three crude oil producers that year.
India and Indonesia
India is the second-largest producer and consumer of coal globally. Indonesia, on the other hand, is the world's largest coal exporter, followed by Australia.
Canada
Canada is also a notable producer of fossil fuels, contributing just under 5% of the global total.
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Fossil fuel consumption over time
Fossil fuel consumption has changed significantly over time, both in terms of the types of fuel burned and the amount consumed. The burning of fossil fuels for energy began around the Industrial Revolution, and consumption has increased significantly since then. In the past half-century, global fossil fuel consumption has increased by around eight times since 1950 and roughly doubled since 1980.
In 2023, fossil fuels—petroleum, natural gas, and coal—accounted for about 84% of total US primary energy production, with renewable energy sources making up the remaining 16%. Petroleum consumption in the US peaked in the 1970s, with a total consumption of around 49% (38 quads) in 1978. In 2023, petroleum consumption had decreased to about 38% (35 quads). The transportation sector accounts for most oil consumption. Oil combustion was responsible for 45% of US energy-related carbon dioxide emissions in 2020, and oil is a major source of greenhouse gas emissions.
Coal is the single largest source of carbon emissions, responsible for over 0.3 degrees Celsius of the 1.2 degrees Celsius increase in global average temperatures since the Industrial Revolution. It is also a major contributor to air pollution, producing pollutants such as sulfur dioxide, nitrogen oxides, mercury, and particulate matter. Coal ash, a harmful waste product, is difficult to recycle and can pollute waterways. Coal consumption is falling in many parts of the world, including the US, where coal supplied 19% of energy consumption in 2020. However, coal still plays a significant role in global energy production and consumption, especially in the Global South, where energy demand is growing at twice the global rate.
Natural gas is burned to generate an increasing share of US electricity and now supplies one-third of the country's energy consumption. In 2020, the United States produced about 24% and consumed about 22% of the world's natural gas. Renewable energy production and consumption reached record highs in 2023, with production at about 9% (8.43 quads) and consumption at about 9% (8.24 quads) of total primary energy. Hydropower, biomass, wind, geothermal, and solar energy are increasingly important sources of renewable energy in the US.
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$33.31
Types of fossil fuels consumed
Fossil fuels are non-renewable energy sources that have been powering economies for over 150 years and currently supply about 80% of the world's energy. They are formed from the carbon-rich remains of animals and plants as they decompose and are compressed and heated underground. The three most commonly used fossil fuels are natural gas, coal, and oil.
Natural Gas
Natural gas is the most environmentally friendly fossil fuel. It is a colourless, odourless, flammable, and non-toxic hydrocarbon that provides approximately a quarter of the energy in the European Union and the United States. It is used for energy production, heating, transportation, and manufacturing.
Coal
Coal is a widely used fossil fuel rich in carbon and hydrocarbons. It requires combustion to release its energy and contributes around 44 TWh of energy to the world. Coal has been a critical energy source and mainstay in global energy production for centuries, but it is also the most polluting energy source in terms of the amount of CO2 and local air pollution it produces per unit of energy. In 2020, coal supplied 19% of U.S. energy consumption, but its share has been steadily decreasing as the costs of natural gas and renewable energy have dropped.
Oil
Oil constitutes about one-third of U.S. energy consumption and is the largest source of energy-related carbon emissions. The majority of the world's oil is pumped out of underground reservoirs, but it can also be sourced from deposits in shale and tar sands. Oil is used to create fuel oil, gasoline, liquefied petroleum gas, and non-fuel products such as pesticides, fertilizers, pharmaceuticals, and plastics. The transportation sector accounts for most oil consumption.
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Transitioning away from fossil fuels
Fossil fuels have been key to industrialization and rising prosperity. However, their impact on health and the climate has prompted global discussions on transitioning to other energy sources. The 28th Conference of the Parties (COP28) in 2023, held in the United Arab Emirates (UAE), marked a significant milestone in this direction. Nearly 200 countries agreed to commit to transitioning away from fossil fuels, aiming for net-zero by 2050. While this agreement lacks a timeline or specific targets for reduction, it reflects a global consensus on the future of fossil fuels.
The transition away from fossil fuels is a complex process that requires patience and innovative solutions. One challenge is the limitation of renewable energy, which can currently only be converted into electric energy and stored in batteries. This restricts its application and makes storage and transportation more difficult compared to fossil fuels. To address this, there is a growing focus on improving storage and transportation methods for renewable energy, and accelerating the development of green hydrogen, which can play a wider role in various industries.
Another aspect of the transition is the need to improve energy efficiency. The GST decision from COP28 calls for a doubling of energy efficiency improvements by 2030. This includes sector-specific targets, such as the need to decarbonize transport. Additionally, the agreement emphasizes the importance of a "'just transition,' ensuring that the rights and interests of workers and ordinary people are protected during the transition to address climate change.
While progress has been made, the current policies are not sufficient to rapidly decline fossil fuel demand. The International Energy Agency (IEA) forecasts only a 2% decrease in fossil fuel demand in the power sector by 2030, falling short of the required 43% reduction in greenhouse gas emissions. To accelerate the transition, government policies must go beyond simply promoting renewables and address barriers to their deployment, invest in clean flexibility, and plan a strategic shift from a fossil fuel economy.
The world is embracing renewables, with many countries showcasing successful models for rapid deployment. Clean electricity growth, led by solar and wind power, has slowed the growth of fossil fuels in the power sector. Notably, coal consumption is declining in many parts of the world, with the UK and a third of the richest nations becoming coal-free. However, oil and gas consumption continue to rise, and a stronger focus on efficiency and investment in clean energy solutions is necessary to achieve a faster transition away from fossil fuels.
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Frequently asked questions
In 2006, American consumers and businesses spent $921 billion on fossil fuels, which was close to 7% of America's gross domestic product. This amount increased to over $1 trillion in 2008. Each year, more than 70% of this money is spent on oil.
Fossil fuel consumption and production contribute to global warming, which has led to significant losses in global crop production. For example, global wheat growers lost $2.6 billion and global corn growers lost $1.2 billion in 2002. Fossil fuel use also has detrimental effects on public health, with nearly 1 in 3 people in the US exposed to unhealthy levels of air pollution, leading to respiratory ailments, heart disease, and an increased risk of death from cardiovascular and pulmonary diseases.
The cost of fossil fuels is subject to the whims of the global fossil fuel markets, with global events such as the pandemic and the Russia-Ukraine war impacting energy prices. On the other hand, renewable energy sources such as wind and solar are now the cheapest sources of energy, with costs as low as $0.04 per kilowatt-hour (kWh) compared to up to $0.22 per kWh for fossil fuels.
