US electricity generation falls two years in a row for first time

The global recession took a big chunk out of America's electricity generation with output down by 3% last year.

According to the Energy Information Administration's (EIA) Annual Energy Outlook Report released today (May 11) output fell much further than 2008's 1% drop in 2009.

Although the report lists other factors, including weather, it was the first time in the 60-years of the report that electricity use fell in two consecutive years.

It goes on to say over the next few years, the key factor influencing US energy markets will be the pace of the economic recovery.

The total US primary energy consumption, if the country's laws stay the same, will increase by 14% from 2008 to 203, representing an average annual growth rate of 0.5 percent - only one fifth of the projected 2.4% annual growth rate of the nation's economic output.

The difference between the two rates is the result of continuing improvement in the energy intensity of the US economy, measured as the amount of energy consumed per dollar of gross domestic product (GDP).

The report also notes that while US consumption of liquid fuels continues to grow over the next 25 years, reliance on petroleum imports will fall.

To read the full report click here.

Luke Walsh


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