Since the 1920s, natural gas-fueled power plants grew gradually. After WWII, advancements in technology and fracking increased US electricity generated by natural gas from 16% in 2000 to 38% in 2021.
The commercial extraction of oil began in the 19th century in the US and Russia, initially for kerosene production. The introduction of the internal combustion engine increased oil demand. The Spindletop discovery in 1901 accelerated US oil production. OPEC’s formation in 1960 and market conditions led to price volatility, with consumption rising steadily in the 2000s.
Oil and natural gas make up 55% of global energy use, with the top 350 companies holding a combined market cap of $7.2 trillion, comprising 7% of the world’s largest companies. State-owned enterprises control 90% of the world’s crude oil reserves. Just 8 companies hold 50% of the market cap.
Approximately 4934 trillion cubic feet of gas have been produced globally since 1900, with the United States contributing around 30%. Texas and Louisiana account for over half of US natural gas production. The introduction of fracking led to a significant increase in production, making the US a major exporter.
Natural gas, once a byproduct, now comprises a quarter of global energy. Advancements in infrastructure and technology, along with increasing demand, have propelled its rise. However, its contributions to greenhouse gases and geopolitical tensions present challenges for sustainability and climate change goals.
Coal, oil, and natural gas have played major roles in U.S. industrialization and energy. Coal dominated in the 20th century, but oil and natural gas gained prominence after World War II. Fracking revitalized oil and gas production, leading to major shifts in fossil fuel production and investment trends.
The use of coal has a long history, from its early adoption in Ancient China to the pivotal role it played in the Industrial Revolution and global energy systems. While some countries are moving away from coal due to environmental concerns, it remains a significant part of the energy landscape.
Coal played a significant role in the US, generating half of the nation’s electricity in 1920 and maintaining that share for decades. However, aging coal plants are being retired due to competition from efficient natural gas and renewable energy sources, as well as state climate policies. This shift reflects growing concerns about cost and carbon emissions.
Americans closely monitor gasoline prices, viewing them as indicators of leaders’ success, economic health, and environmental policy effectiveness. The price of crude oil largely influences gas prices, yet federal and state taxes play a significant role. These taxes, popular due to revenue generation, heavily fund highway and mass transit spending.
In 2022, the US consumed 32 trillion cubic feet of natural gas, the highest level in 30 years due to increased fracking. Efforts towards carbon-neutral energy may reduce demand, as residential use is gradually being replaced by electrical alternatives. However, industrial demand is anticipated to remain strong in the near term.