Energy expenditures rose in every state in 2017

by Talk Business & Politics staff ( 74 views 

In every state, total energy expenditures and total energy expenditures as a percentage of gross domestic product (GDP) rose in 2017, from 2016, according to the U.S. Energy Information Administration (EIA). Only in the District of Columbia did total energy expenditures fall.

Louisiana, Mississippi and Wyoming have more energy-intensive industries and a higher percentage of energy expenditures per dollar of GDP. The District of Columbia and states that have concentrated urban areas with less energy-intensive industries, such as Massachusetts and New York, have the lowest expenditures per GDP.

U.S. total energy expenditures, or the amount of money spent to consume energy in the United States, rose to $1.14 trillion in 2017, and it was the first increase since 2014. U.S. GDP, comprising the total value of goods and services produced in the United States including energy, rose 4% to $19.5 trillion in 2017, from 2016. Adjusted for inflation, GDP rose 2% in 2017, from the previous year.

In 2017, U.S. energy expenditures per GDP rose to 5.8%, up from a record low of 5.6% in 2016, and was the first annual increase since 2011. The rise can be attributed to higher U.S. energy prices, which were up 9% in 2017, from 2016. Average U.S. prices for petroleum and natural gas rose 14% and 13%, respectively, and electricity prices increased 2%. Total U.S. energy consumption increased by less than 1% over the same period.

Louisiana had the highest energy expenditures per GDP of any state at 13.5% in 2017, and the state has had the highest every year since 1997. Half of the state’s total energy expenditures were in the industrial sector, including its petrochemical industry. The state’s expenditures increased by nearly 21% in 2017, from 2016, and this was the largest percentage increase of any state over the period.

The District of Columbia, New York and Massachusetts had the lowest levels of energy expenditures per GDP in 2017. They have high GDP levels and low energy-intensive industries, such as finance and technology. New York has had the lowest energy expenditures per GDP of any state for nearly every year since 1997. The District of Columbia had even lower energy expenditures per GDP over the same period. The transportation sector accounted for the largest share of New York’s energy expenditures. The commercial sector, which includes government and business energy activities, accounted for the largest share of energy expenditures in the District of Columbia.