March 2024
The US maintains a heavy reliance on fossil fuels for its primary energy supply, with projections indicating that this trend will persist until at least 2040, with fossil fuels still comprising 64% of total primary energy supply.
Despite global efforts to reduce fossil fuel usage, the US remains a significant producer of natural gas and oil, solidifying its status as a prominent supplier in the long term. While renewable energy sources are expected to grow rapidly, achieving carbon-free energy dominance in the US is not anticipated until after 2040. In 2023, the US supplied nearly 25% or 2,800MMcmpd of the world's natural gas, equivalent to 10,790TWh. Its robust industry development and cost-effective production methods contribute to its significant role as a major natural gas and oil supplier, a role that is expected to continue beyond the forecast horizon. The US has emerged as the world's largest exporter of LNG and is expanding further. Projections suggest a total liquefaction capacity of over 130Mt by 2026. Historically, the US has been a balanced supplier to both Europe and Asia. In 2023, EU countries and the UK remained the primary destination for US LNG exports, accounting for 67% (218MMcmpd) of total US exports. Five countries—the Netherlands, the UK, France, Spain, and Germany—imported more than half (170MMcmpd) of total US LNG exports. This trend underscores the significant portion of the US' Asian exports that were previously floating on the spot market, primarily delivered to China or India.