Energy Use in Industry

The industrial sector consists of all facilities and equipment used for producing, processing, or assembling goods, and encompasses manufacturing, agriculture, forestry, fishing and hunting, mining (including oil and gas extraction), and construction.

Among the most energy-intensive industries in the United States are those that manufacture petroleum and coal products, chemicals, paper and wood products, steel, and aluminum.

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Data for this figure (.xls).

U.S. Petroleum Refining Is the Most Energy-Consuming Industry

Petroleum refining accounted for about 7% of total U.S. energy consumption in 2006. Refiners are the number one industrial energy users. Most of the energy they consume comes in the form of byproducts of the refining process. Purchases of additional energy from outside sources cost the industry almost $5.1 billion in 2002, the last year for which financial data on energy expenditures are available.

The petroleum refining industry uses energy both to supply heat and power for plant operations and as a raw material for the production of petrochemicals and other non-fuel products. The U.S. petroleum refining industry consumed about 6.7 quadrillion Btu of energy in 2006 for fuel and non-fuel (feedstock) uses.

Major refining states include Texas, Louisiana, California, Illinois, Pennsylvania, and New Jersey.

The U.S. Chemical Industry Is the Second Largest Industrial Consumer of Energy

Few goods are manufactured without some input from the chemical industry. The chemical industry is also the second largest consumer of energy in powering its distillation, catalytic, and electrochemical reactors. The U.S. chemical industry consumed about 5 quadrillion Btu of energy in 2006 for fuel and non-fuel (feedstock) uses. This represents about 5% of domestic energy use and about 24% of all U.S. industrial energy use.

Energy purchases cost the industry about $32 billion in 2002, about 5% of the value of chemical industry shipments that year.

The States of Texas, New Jersey, Louisiana, North Carolina, and Illinois are the Nation's top chemical producers.

The U.S. Forest Products Industry Is the Third Largest Industrial User of Energy

Forest product industries employ a variety of physical and chemical processes in the manufacturing of paper and other wood products. Although the industry self-generated close to 26% of its energy needs in 2006, it is still the third largest user of fossil energy in the U.S. industrial sector.

The forest products industry consumed almost 2.8 quadrillion Btu of energy in 2006 for fuel and non-fuel (feedstock) uses. This represents about 13% of domestic industrial energy use, making the forest products industry as a whole the third largest industrial consumer of energy in the United States.

Within the forest products industry, the pulp and paper industry uses the vast majority of the energy, 2.36 quadrillion Btu while the wood products industry uses only 0.45 quadrillion Btu of energy. The industry makes use of wood residues and byproducts and self-generates a large portion of its own energy needs.

The States of Wisconsin, California, and Georgia are the Nation's top three forest product producers.

The Steel Industry Is the Fourth Largest Industrial Consumer of Energy

The steel industry uses energy sources both to supply heat and power for plant operations and as a raw material for the production of coal coke for use in blast furnaces. The U.S. steel industry consumed about 1 quadrillion Btu of energy in 2006 for fuel and non-fuel (feedstock) uses. This number includes electricity losses incurred during the distribution, generation, and transmission of electricity.

Steel industry energy consumption represents about 1% of domestic energy use and roughly 5% of all U.S. industrial energy use.

The highest geographic concentration of steel mills is in the Great Lakes region, including Indiana, Illinois, Ohio, Pennsylvania, and Michigan. About half of steel industry facilities conduct energy-management activities.