U.S. Energy Flow -- 1995

Energy consumption in 1995 increased slightly for the fifth year in a row (from 89 to 91 quadrillion [10¹⁵Btu). U.S. economic activity slowed from the fast-paced recovery of 1994, even with the continued low unemployment rates and low inflation rates. The annual increase in U.S. real GDP dropped to 4.6% from 1994�s increase of 5.8%. Energy consumption in all major end-use sectors surpassed the record-breaking highs achieved in 1994, with the largest gains (2.5%) occurring in the residential/commercial sector. Crude oil imports decreased for the first time this decade. There was also a decline in domestic oil production. Venezuela replaced Saudi Arabia as the principal supplier of imported oil. Imports of natural gas, mainly from Canada, continued to increase. The demand for natural gas reached a level not seen since the peak levels of the early 1970s and the demand was met by a slight increase in both natural gas production and imports. Electric utilities had the largest percentage increase of n.atural gas consumption, a climb of 7% above 1994 levels. Although coal production decreased, coal exports continued to make a comeback after 3 years of decline. Coal once again become the primary U.S. energy export. Title IV of the Clean Air Act Amendments of 1990 (CAAA90) consists of two phases. Phase I (in effect as of January 1, 1995) set emission restrictions on 110 mostly coal-burning plants in the eastern and midwestem United States. Phase II, planned to begin in the year 2000, places additional emission restrictions on about 1,000 electric plants. As of January 1, 1995, the reformulated gasoline program, also part of the CAAA90, was finally initiated. As a result, this cleaner-burning fuel was made available in areas of the United States that failed to meet the Environmental Protection Agency� s (EPA�s) ozone standards. In 1995, reformulated gasoline represented around 28% of total gasoline sales in the United States. The last commercial nuclear power plant under construction in the United States came on line in 1995. The Tennessee Valley Authority� s (TVA) Watts Bar-l received a low-power operating license from the U.S. Nuclear Regulatory Commission (NRC). The construction permit was granted in 1972. Also, TVA canceled plans to complete construction of three other nuclear plants. In 1995, federal and state governments took steps to deregulate and restructure the electric power industry. The Federal Energy Regulatory Commission (FERC) unanimously approved a proposal to require utilities to open their electric transmission system to competition from wholesale electricity suppliers. California has been at the forefront in the restructuring of the electric utility industry. Plans authorized by the California Public Utility Commission prepare for a free market in electricity to be established by 1998. In 1990, the U.S. Department of Energy (DOE) began reporting statistics on renewable energy consumption. The types and amounts of renewable energy consumed vary by end-use sector, electric utilities and the industrial sector being the primary consumers since 1990. Renewable energy provided 6.83 quads (7.6I) of the total energy consumed in the United States in 1995, compared to 7.1% in 1994. Increasing concern over the emission of greenhouse gases has resulted in exhaustive analysis of U.S. carbon emissions from energy use. Emissions in the early 1990s have already exceeded those projected by the Clinton Administration� s Climate Change Action Plan (CCAP) released in 1994 that was developed to stabilize U.S. greenhouse gas emissions by the year 2000