EXECUTIVE SUMMARY
Washington residents and businesses spent $8.4 billion on energy
in 1993. This constituted six percent of the gross state product.
This 1993 value was about half the peak value of 11.6 percent
in 1981 and was equivalent to 1970 levels. Total end-use energy
consumption was 1,143 trillion Btu (Tbtu), comparable to levels
in the period from 1990 to 1992.
Total end-use energy consumption in the state grew 51 percent
between 1970 and 1993. Three quarters of this growth occurred
from 1983 to 1990. Growth in transportation energy consumption
accounted for 77 percent of the growth in total end-use energy
consumption from 1970 to 1993. This growth was driven by a 135-percent
increase in vehicle miles of travel, which resulted from population
growth and a 53-percent increase in per capita travel. Since
petroleum is the primary fuel used by the transportation sector,
growth in transportation consumption has maintained the state's
dependence on this fuel. Petroleum accounted for 51 percent of
the energy consumed in Washington in 1993.
Average energy prices in Washington declined 38 percent in constant
dollars from their peak in the early 1980s to 1993. Natural gas
and gasoline prices led the decline. However, 1993 average energy
prices were still a third higher than in 1970 (gasoline was the
only major fuel with lower prices). Energy prices rose sharply
from 1973 to 1975 during the first energy crisis and from 1978
to 1982 due in part to the 1978 Iranian revolution (this was the
heyday of the Organization of Petroleum Exporting Countries).
Washington state energy prices followed national price trends
and historically were about 5 to 10 percent lower.
Energy intensity in the four end-use sectors (transportation,
industrial, commercial, residential) declined from 1970 to 1993
as expressed by the energy intensity indicators selected for those
sectors. Likewise, energy cost intensity for the sectors dropped
from energy price induced peak levels in the early 1980s.
- Industrial energy consumption per dollar of gross industrial
product declined 47 percent from its peak in 1972. Energy expenditures
per gross industrial product in 1993 were 50 percent lower than
in 1984, but were still 50 percent higher than 1970 levels.
- In the transportation sector, average highway vehicle fuel
efficiency improved 36 percent from 1970 to 1993. The fuel cost
of driving a mile declined 56 percent from 1981 to 1993. Overall
highway energy expenditures declined 30 percent during this period,
despite a 63 percent increase in vehicle miles traveled. The
declines in cost were due to improved vehicle fuel efficiency
and lower energy prices.
- Residential household energy consumption was 33 percent less
in 1993 than the peak value in 1972. Household energy expenditures
in 1993 were 26 percent less than the peak in 1983 and were equivalent
to 1970 levels.
- Commercial sector energy consumption per commercial employee
declined 26 percent from its peak in 1982, but was equivalent
to the 1970 level. Commercial energy expenditures per commercial
employee were 38 percent less in 1993 than the peak in 1982, but
were 37 percent higher than in 1970.
Lower energy costs for businesses and consumers were due to reductions
in energy intensity and energy prices. Decreases in energy intensity
were due to improvements in energy efficiency and in economic
trends such as the shift to lower energy intensity, high value
added industries. The fact that energy intensity remained stable
or declined during the late-1980s when the economy experienced
moderate growth and energy prices were stable suggests that long-term
gains in energy efficiency have been achieved.
Energy consumption per person in Washington State was relatively
steady from 1970 to 1993. However, transportation energy consumption
per person grew 32 percent during this period, while non-transportation
energy consumption per person declined 23 percent. Historically
energy consumption per person in Washington state has been 5 to
10 percent less than the rest of the United States. However,
that trend reversed in the mid-1980s. In 1993, Washington State
per capita consumption again dipped below the United State's.
Both the United States and Washington State have per capita energy
consumption that is more than twice as much as other developed
countries like Germany, England and Japan and five to 10 times
greater than that of the rest of the world.
Emissions of greenhouse gases due to the consumption of energy
fuels increased 53 percent from 1970 to 1993. The rate of growth
is greater than the growth in energy consumption because of increased
reliance on fossil fuels. Fossil fuels are the greatest contributors
to greenhouse gas emissions. The share of total energy consumption
from renewable sources like hydroelectricity (which produces no
greenhouse gas emissions) has declined.
