Energy use and intensity in the industrial sector, 1972 - 1991

Energy use in the United States is substantially lower now than it would have been had energy intensities not fallen after the oil price shocks of the 1970s. The United States would have consumed over 30 quadrillion Btu (QBtu) more energy in 1991 if the energy-GDP ratio (energy divided by gross domestic product) had remained at its 1972 value. Much of this improvement has stemmed from developments within the industrial sector. This paper examines industrial energy use from two perspectives. First, the contribution of the industrial sector to the decline in the overall energy-GDP ratio is estimated. Second, the components of change in conservation trends within the industrial sector are examined. This part of the analysis identifies the change in overall industrial intensity (total energy consumption/total industrial output) that is due to improvements in energy intensity at the individual industry level in comparison to various aspects of the composition of industrial output. This paper is based upon recent work conducted by Pacific Northwest Laboratory for the Office of Energy Efficiency and Alternative Fuels Policy, U.S. Department of Energy. Discussion of other end-use sectors and some additional analysis of industrial sector energy trends is found in Energy Conservation Trends - Understanding the Factors Affecting Conservation Gains and their Implications for Policy Development.