The US maintains a heavy reliance on fossil fuels for its primary energy supply, with projections indicating that this trend will persist until at least 2040, with fossil fuels still comprising 64% of total primary energy supply.
Despite global efforts to reduce
fossil fuel usage, the US remains a significant producer of natural gas and
oil, solidifying its status as a prominent supplier in the long term. While
renewable energy sources are expected to grow rapidly, achieving carbon-free
energy dominance in the US is not anticipated until after 2040.
In 2023, the US supplied nearly 25%
or 2,800MMcmpd of the world's natural gas, equivalent to 10,790TWh. Its robust
industry development and cost-effective production methods contribute to its
significant role as a major natural gas and oil supplier, a role that is
expected to continue beyond the forecast horizon.
The US has emerged as the
world's largest exporter of LNG and is expanding further. Projections suggest a
total liquefaction capacity of over 130Mt by 2026.
Historically, the US has been a
balanced supplier to both Europe and Asia. In 2023, EU countries and the UK
remained the primary destination for US LNG exports, accounting for 67%
(218MMcmpd) of total US exports. Five countries—the Netherlands, the UK,
France, Spain, and Germany—imported more than half (170MMcmpd) of total US LNG
exports. This trend underscores the significant portion of the US' Asian
exports that were previously floating on the spot market, primarily delivered
to China or India.