Rajan Wilcox
Fossil fuels are a primary source of energy in the USA, with petroleum, natural gas, and coal accounting for 82% of the country's total energy consumption in 2024. The US government's continued subsidies for the fossil fuel industry cost billions of dollars annually, impacting the environment and public health. The transportation sector is the largest contributor to direct greenhouse gas emissions, with over 94% of fuel used coming from petroleum. In 2024, the US saw a record increase in fossil fuel-fired electricity output, with a 23% jump since 2019, and a 5.5% rise in total electricity generation from 2019 to 2024. The US now has a higher fossil fuel reliance than China, which has ramped up clean power output.
| Characteristics | Values |
|---|---|
| Percentage of US energy from fossil fuels | 82% |
| Percentage of US energy from non-fossil fuels | 18% |
| Most consumed fuel in the US | Petroleum |
| Second most consumed fuel in the US | Natural gas |
| Third most consumed fuel in the US | Nuclear energy |
| Percentage of fuel used for transportation that is petroleum-based | Over 94% |
| US fossil fuel subsidies | $20 billion |
| CO2 emissions from fossil fuel combustion in 2022 | Increased by 8% from 2020 and 1% from 2021 |
| CO2 emissions from natural gas consumption in 2022 | Increased by 5% from 2021 |
| CO2 emissions from coal consumption in 2022 | Decreased by 6% from 2021 |
| CO2 emissions from petroleum use in 2022 | Increased by less than 1% |
| US fossil fuel dependence compared to China | Higher |
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What You'll Learn
Fossil fuels are the largest source of energy in the USA
The largest source of greenhouse gas emissions in the US is the burning of fossil fuels for electricity, heat, and transportation. In 2022, CO2 emissions from fossil fuel combustion increased by 8% compared to 2020 and by 1% compared to 2021. While emissions from coal consumption decreased by 6% from 2021 to 2022, emissions from natural gas consumption and petroleum use also increased during this period. Over 94% of the fuel used for transportation is petroleum-based, resulting in direct emissions. The transportation sector is the largest source of direct greenhouse gas emissions.
Despite the negative impacts of fossil fuels, there has been political support for their continued use. Former President Trump, for example, advocated for a return to fossil fuels, dismissing renewable energy sources like wind power. Trump's stance on energy has been criticized as detrimental to the country, the economy, and the environment.
However, renewable energy sources like wind and solar are gaining traction in the US. In 2023, renewables surpassed coal in energy generation, and wind and solar are the fastest-growing renewable sources. While they currently contribute less than 3% of total energy used in the US, there is potential for further development and a transition towards a cleaner energy mix.
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Fossil fuel subsidies cost billions and hurt health and the environment
The United States is one of the largest contributors to global warming and climate change, with human activities responsible for the increase in greenhouse gas emissions over the last 150 years. The burning of fossil fuels for electricity, heat, and transportation is the largest source of these emissions. Despite this, the US government continues to subsidize the fossil fuel industry, costing billions of taxpayer dollars annually. These subsidies are a significant barrier to the transition to renewable energy sources and are a betrayal of the American people, as they fund an industry that is harmful to their health and the environment.
The US government's subsidies to the fossil fuel industry amount to billions of dollars every year, with $20 billion going directly to the industry, according to one source. Another source estimates that the federal government provided $14.7 billion per year to the oil, gas, and coal industries, excluding consumption subsidies, which amounted to an additional $14.5 billion annually. These subsidies are a form of support to consumers to lower the cost of fossil fuel use. Additionally, state-level incentives for the fossil fuel industry totaled $5.8 billion, bringing the total subsidies for the industry to $25.5 billion during the 2015-2016 election cycle. During this period, oil, gas, and coal companies spent $354 million on lobbying and campaign contributions, resulting in $29.4 billion in federal subsidies, an 8,200% return on investment. This influence on political campaigns has led to a majority of House Republicans opposing the taxation of carbon pollution and the Trump administration's efforts to further support the coal industry.
The true cost of fossil fuel subsidies is much higher when considering the externalities, such as societal, environmental, and health costs. These costs are often not reflected in the price of fossil fuels and are disproportionately borne by vulnerable communities, including minority and low-income populations living near highly polluting facilities. The negative externalities of fossil fuel use, including greenhouse gas emissions and other pollution, are estimated to have totaled $5.3 trillion globally in 2015. The social cost of carbon (SCC) reflects the negative societal impacts of climate change, such as the spread of diseases, decreased food security, coastal vulnerabilities, and public health costs. Addressing these externalities and transitioning to renewable energy sources could save taxpayers billions of dollars and improve the health and quality of life for many people.
The continued subsidization of the fossil fuel industry is counter-productive and incompatible with meeting climate targets, such as the Paris Agreement goal of limiting global warming to less than 2°C. Instead of subsidizing fossil fuels, public subsidies should be directed towards affordable, reliable power sources that consider public health impacts, climate change, and environmental degradation. Removing fossil fuel subsidies would also free up significant funds that could be used for essential government functions, such as education and healthcare, or to fund scholarships, pay the salaries of teachers, or ensure healthcare for low-income children.
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Fossil fuel use is increasing, unlike other major economies
The use of fossil fuels is increasing in the USA, unlike other major economies, which are transitioning to renewable energy sources. In 2022, CO2 emissions from fossil fuel combustion in the USA increased by 8% compared to 2020 and 1% compared to 2021. This is due to a variety of factors, including the country's increased energy demands and the influence of the Trump administration's policies.
The USA's demand for energy is rising, driven by the need for more computing power for AI and the soaring demand for cooling as temperatures rise. The country's energy consumption is expected to quadruple by 2030. To meet this demand, the Trump administration has proposed increasing the use of fossil fuels, particularly coal, gas, and nuclear power. Trump has criticised renewable energy sources, such as wind power, claiming that it is ineffective and detrimental to the environment.
However, this stance contradicts the progress made by other major economies towards renewable energy. In 2025, the UN Secretary-General, António Guterres, stated that the world was on the brink of a breakthrough in the climate fight, with renewable energy projects becoming increasingly competitive with fossil fuels in terms of cost and energy production. According to a report from the International Renewable Energy Agency, solar power is about 41% cheaper than the lowest-cost fossil fuel alternative, and onshore wind generation is less than half the price of fossil fuels.
Despite the economic and environmental benefits of transitioning to renewable energy, the USA continues to subsidize the fossil fuel industry with billions of dollars annually. This support has blocked the transition to cheaper, cleaner energy sources and contributed to climate chaos and higher energy bills for consumers.
The USA's continued reliance on fossil fuels and associated subsidies contrasts with the efforts of other major economies to reduce their dependence on these energy sources and transition to renewable alternatives. This divergence in approaches to energy security and climate change mitigation has significant implications for the global effort to address the climate crisis.
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Fossil fuels are used for electricity, heat, and transportation
Fossil fuels—petroleum, natural gas, and coal—accounted for about 84% of total US primary energy production in 2023. Fossil fuels are used for electricity, heat, and transportation.
Electricity
In 2023, about 4,178 billion kilowatthours (kWh) (or about 4.18 trillion kWh) of electricity were generated at utility-scale electricity generation facilities in the United States. About 60% of this electricity generation was from fossil fuels, with coal, natural gas, petroleum, and other gases as the main sources.
Heat
Crude oil is often used to fabricate liquid-fuel products like gasoline, diesel fuel, and heating oil.
Transportation
The transportation sector is by far the largest consumer of petroleum products in the US. In 2023, petroleum provided about 89% of the transportation sector's primary energy consumption.
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Petroleum is the most-consumed fossil fuel
Fossil fuels have dominated the US energy mix for over a century, but the mix has changed over time. Petroleum, natural gas, and coal are the fossil fuels used in the United States. In 2023, fossil fuels accounted for about 83% to 84% of total US primary energy production. Petroleum has been the most-consumed fossil fuel in the US for the past 73 years, since 1950.
Petroleum products such as motor gasoline, diesel, jet fuel, and propane are widely used in the US economy, from transportation to industrial chemicals and plastics. In 2022, the US consumed about 20.28 million barrels of petroleum per day, including about 1.17 million barrels of biofuels per day. Gasoline is the most-consumed petroleum product in the United States, with finished motor gasoline consumption averaging about 8.78 million barrels per day in 2022, accounting for about 43% of total US petroleum consumption. Distillate fuel oil, which includes diesel and heating oil, is the second-most-consumed petroleum product, averaging about 3.96 million barrels per day in 2022, or 20% of total US consumption. Hydrocarbon gas liquids (HGLs), including propane and butane, are the third-most-consumed category of petroleum, averaging about 3.59 million barrels per day in 2022, or 18% of total consumption. Jet fuel is the fourth-most-consumed petroleum product, with consumption of about 1.56 million barrels per day in 2022, or about 8% of the total.
In 2023, petroleum accounted for about 38% of total US energy consumption, down from a peak of about 49% in 1978. US petroleum consumption decreased in 2020 due to the COVID-19 pandemic but increased again in subsequent years. Petroleum provided about 89% of the transportation sector's primary energy consumption in 2023, but less than 1% of the electric power sector's consumption.
While the use of electric vehicles is increasing, petroleum remains the predominant fuel for cars, trucks, ships, trains, and planes. Over 94% of the fuel used for transportation is petroleum-based, including gasoline and diesel. The transportation sector is the largest source of direct greenhouse gas emissions in the US. Emissions from petroleum use increased by less than 1% in 2022.
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Frequently asked questions
In 2024, fossil fuels accounted for 82% of total energy consumption in the USA.
The USA uses petroleum, natural gas, and coal. Petroleum has been the most-consumed fuel in the USA for the past 75 years.
In 2024, the USA became more fossil-fuel dependent than China. This is due to China's aggressive transition to clean power output.
Fossil fuels are primarily burned for electricity, heat, and transportation.
