INDUSTRIAL SECTOR

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Why this indicator?

What does it mean?

What are the trends?

About the data

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Energy Consumption from the Direct Service Industries

Summary

Industrial energy intensity (energy use per dollar of industrial product) declined 47 percent from its peak in 1972 to 1993. This improvement in energy intensity was the greatest of any sector. However, industrial energy cost intensity was 50 percent greater in 1993 than 1970. This represents a greater increase in cost intensity than any of the sectors, indicating that energy prices in the industrial sector grew more rapidly than in the other sectors. Total industrial energy consumption declined 20 percent from its peak in 1972 to 1993. Electricity consumption grew, increasing its share of industrial energy consumption from 32 percent in 1970 to 49 percent in 1993.

	Industrial Electric Consumption	Industrial Total Energy Consumption	Industrial Total Energy Expenditures	Industrial Electric Consumption per $ Product	Industrial Energy Consumption per $ Product	Industrial Energy Expenditures per $ Product
Year	GWh	TBtu	million 1993$	kWh/$	kBtu/$	1993 cents/$

1970	25,700	274	$559	1.20	12.8	2.6
1971	24,500	272	$572	1.23	13.6	2.9
1972	28,100	305	$627	1.38	15.0	3.1
1973	26,900	315	$661	1.23	14.4	3.0
1974	29,900	301	$808	1.32	13.3	3.6
1975	27,600	266	$892	1.21	11.6	3.9
1976	29,800	256	$886	1.23	10.6	3.7
1977	27,200	259	$929	1.08	10.3	3.7
1978	31,500	264	$969	1.13	9.5	3.5
1979	31,700	260	$1,086	1.08	8.8	3.7
1980	31,500	252	$1,332	1.14	9.1	4.8
1981	34,900	272	$1,587	1.36	10.6	6.2
1982	28,400	235	$1,834	1.13	9.3	7.3
1983	31,000	213	$1,576	1.26	8.7	6.4
1984	33,500	264	$2,040	1.29	10.1	7.8
1985	29,600	234	$1,638	1.16	9.2	6.4
1986	30,200	241	$1,314	1.08	8.7	4.7
1987	31,700	251	$1,336	1.10	8.7	4.6
1988	37,000	271	$1,550	1.22	8.9	5.1
1989	37,500	255	$1,571	1.16	7.9	4.9
1990	40,800	272	$1,501	1.21	8.1	4.5
1991	41,000	267	$1,371	1.28	8.3	4.3
1992	38,500	252	$1,245	1.20	7.8	3.9
1993	36,700	253	$1,247	1.15	7.9	3.9
Notes: Values in italics are WSEO estimates of state of industrial product Sources: Consumption and Expenditures -- Energy Information Administration; Gross State Product -- U.S. Department of Commerce; Price Deflator -- OFM, Forecasting Division, Washington Economic and Revenue Forecast

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Why Select This Indicator?

The industrial sector includes manufacturing, construction, agriculture, forestry and mining. Trends in industrial sector energy intensity are shown by dividing energy consumption and expenditures per dollar of industrial product.

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What Are The Trends?

Industrial sector energy intensity steadily declined from its peak in 1972. From 1972 to 1980, energy consumption per dollar of industrial product declined 39 percent, which corresponds to an annual decline of six percent. The rate of decline moderated to 1.1 percent per year from 1980 to 1993. Electricity consumption per dollar of industrial product remained relatively steady from 1970 to 1993. The electricity share of total consumption increased from 32 percent in 1970 to 49 percent in 1993. Note that total industrial energy consumption declined 20 percent from its peak in 1973.

Industrial sector energy cost intensity increased 50 percent from 1970 to 1975 and 111 percent from 1979 to the peak in 1984. By 1993, energy expenditures per dollar of industrial product had declined by 50 percent. Cost intensity in 1993 was 50 percent higher than 1970 in constant dollars.

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What Does It Mean?

Industrial sector energy intensity declined 47 percent from its peak in 1972 to 1993. This was the most significant reduction in energy intensity of the four major sectors (residential, commercial, industrial and transportation). The improvement in energy intensity was driven by improvements in efficiency and shifts from energy intensive heavy industry to less energy intensive, high product value industries (like electronics). However, industrial energy cost intensity increased more than any of the other sectors. This implies that energy prices for the industrial sector have increased more rapidly than the other sectors during this period.

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About The Data

Energy consumption and expenditure data are from the Energy Information Administration. Gross industrial product information is from the US Department of Commerce and is converted to constant 1993 dollars. Gross industrial product information is only available for 1977 to 1992. Values for 1970 to 1976 and 1993 were estimated by WSEO using industrial employment trends to extrapolate the gross industrial product data. The trends for industrial employment and gross product were very similar from 1977 to 1992.

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Industrial Energy Consumption from the Direct Service Industries

The direct service industries (DSIs) are so named because they purchase much of their electricity directly from the Bonneville Power Administration (BPA). This group of industrial firms in the Pacific Northwest are primarily electricity-intensive aluminum and primary metal industries. Twelve of the 19 plants are located in Washington. Washington plants represented 70 percent of the 3300 aMW BPA contracted capacity in 1995. The DSIs accounted for 20 to 25 percent of BPA's revenues from 1992 to 1995. In 1990, the DSIs consumed a little more than half of the industrial electricity in the state. This represented a little more than 20 percent of total electricity consumption in Washington.

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