Texas Leads the Nation in Energy Use

When it comes to energy use, Texas really does take the crown. According to the U.S. Energy Information Administration's (EIA) latest State Energy Data System (SEDS) report, Texas consumed more energy in 2023 than any other state - by a wide margin. In 2023, the Lone Star State used twice as much energy as California and three times as much as Florida, the second and third-highest energy-consuming states.

Between 2007 and 2023, total U.S. energy use fell by 5%. But Texas went the other way; its energy consumption rose 21% over the same period. That growth is driven largely by a booming industrial sector, population increase, and higher electricity demand.

In fact, Texas used more energy than any other state across every sector-industrial, residential, commercial, transportation, and electric power. The state also led in the consumption of coal, natural gas, and petroleum while ranking second only to California in renewable energy use.

To put it in perspective: the industrial sector alone in Texas consumed more energy than all sectors in California combined. Even Texas's petroleum consumption nearly matched California's total energy use.

What's Fueling the Growth

Texas's industrial sector is the main driver of this energy appetite, with consumption rising 28% since 2007. The sector includes heavy-hitters like chemical manufacturing, oil and natural gas extraction, petroleum refining, and agriculture, all energy-intensive industries that keep the state's economy humming.

Population growth plays a big role, too. Texas's population jumped 29% between 2007 and 2023, compared to the national average of 12%. That surge fueled more energy use in homes, businesses, and on the roads. During that time, energy use climbed 18% in the commercial sector, 15% in transportation, and 3% in residential consumption.

A Grid of Its Own

Texas's energy story is also unique because it largely operates on its own electric grid, independent from the nation's regional systems. That means the state must rely on its own generation capacity to meet local demand. From 2007 to 2023, electric power consumption in Texas grew 6%, double the national rate.

Demand won't slow down anytime soon. The EIA expects Texas's electricity use to grow rapidly through 2025 and 2026, driven by new data centers and cryptocurrency operations connecting to the grid.

While Texas's energy use surged, other large states went in the opposite direction. California's total energy use fell 14% and Florida's dropped 2% between 2007 and 2023, largely due to efficiency gains and reduced reliance on coal.

California's industrial energy use declined by 20%, in part because of lower oil and gas extraction. The state's electric power sector became far more efficient, using 19% less energy in 2023 than in 2007, thanks to big increases in solar and wind generation. Florida, meanwhile, boosted its natural gas and solar output while cutting power sector energy use by 4%.