Demand for energy products around the globe came to a standstill during the Covid-19 pandemic, as non-essential travel was significantly curbed in an effort to mitigate the spread of the deadly disease. As a result, US energy production fell by the most on record last year.
According to the Energy Information Administration’s Monthly Energy Review published on Thursday, the country’s energy production fell to just under 96 quadrillion British thermal units (quads), marking a 5% drop from production levels witnessed in 2019. In absolute terms, the decline was the steepest annual decrease in US energy production on record.
Low oil prices forced drilling activity to come to a near-standstill for most of last year, causing crude oil production to average to about 11.3 million barrels per day. This marks a decline of 8%, or 935,000 barrels per day, compared to the historically elevated annual average of 12.2 million barrels per day noted in 2019.
Similarly, US coal production also reported the sharpest annual decrease on record, dropping by 25% to under 11 quads in 2020, the EIA added. On the other hand, however, US renewable energy production jumped 2% to a historic high of 11.8 quads last year, amid higher electricity generation stemming from solar and wind.
Information for this briefing was found via EIA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
