US Energy Policy

The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via include legislation, regulation, court decisions, public participation, and other techniques.

Federal energy policy acts were passed in 1974, 1992, 2005, 2007, 2008, 2009, 2021, and 2022, although energy-related policies have appeared in many other bills. State and local energy policies typically relate to efficiency standards and/or transportation.

Federal energy policies since the 1973 oil crisis have been criticized over an alleged crisis-mentality, promoting expensive quick fixes and single-shot solutions that ignore market and technology realities.

Americans constitute less than 5% of the world's population, but consume 26% of the world's energy to produce 26% of the world's industrial output. Technologies such as fracking and horizontal drilling allowed the United States in 2014 to become the world's top oil fossil fuel producer. In 2018, US exports of coal, natural gas, crude oil and petroleum products exceeded imports, achieving a degree of energy independence fo the first time in decades. In the second half of 2019, the US was the world's top producer of oil and gas. This energy surplus ended in 2020.

Various multinational groups have attempted to establish goals and timetables for energy and other climate-related policies, such as the 1995 Kyoto Protocol, and the 2015 Paris Agreement.

History

In the early days of the Republic energy policy allowed free use of standing timber for heating and industry. Wind and water provided energy for tasks such as milling grain. In the 19th century, coal became widely used. Whales were rendered into lamp oil. Coal gas was fractionated for use as lighting and town gas. Natural gas was first used in America for lighting in 1816. It has grown in importance, especially for electricity generation, but US natural gas production peaked in 1973 and the price has risen significantly since then.

Coal provided the bulk of the US energy needs well into the 20th century. Most urban homes had a coal bin and a coal-fired furnace. Over the years these were replaced with oil furnaces that were easier and safer to operate.

From the early 1940s, the US government and oil industry entered into a mutually beneficial collaboration to control global oil resources. By 1950, oil consumption exceeded that of coal. Abundant oil in California, Texas, Oklahoma, as well as in Canada and Mexico, coupled with its low cost, ease of transportation, high energy density, and use in internal combustion engines, led to its increasing use.

Following World War II, oil heating boilers took over from coal burners along the Eastern Seaboard; diesel locomotives took over from coal-fired steam engines; oil-fired power plants dominated; petroleum-burning buses replaced electric streetcars, and citizens bought gasoline-powered cars. Interstate Highways helped make cars the major means of personal transportation. As oil imports increased, US foreign policy was drawn into Middle East politics, seeking to maintain steady supply via actions such as protcting Persian Gulf sea lanes.

Hydroelectricity was the basis of Nikola Tesla

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