Since the industrial revolution began the switch from relying on manual labor to mechanical solutions, we’ve increasingly relied on fossil fuels for our energy needs. Oil, gas, and coal are the forces of all our industrial, commercial, and technology, and we don’t appear to be close to changing the situation in the near future.
In the United States of America, the energy cost is increasingly high, especially in the last few years as global supply chains were impacted by various worldwide events and further weakened an economy trying to recover from the effects of the recent pandemic.
But how does the cost of oil, gas, and electricity here compare with the rest of the world? Should we be complaining, or should we be grateful?
Let’s take a comparative look at the energy cost worldwide, how we use our energy, the impact of our energy consumption, and how we could transition to more sustainable energy habits.
How Much Energy Does the U.S. Consume?
According to the United States Department of Energy (DOE), the U.S. spent $1 trillion, or 4.8 per cent of the country’s Gross Domestic Product (GDP), on energy to enable the systems that make modern life possible, including transportation (27.7%), residential (21.5%), commercial (17.9%), and industrial (32.4%) applications. This translates to a cost of $3,039 for each person’s electricity and heating. Our costs are closely tied to global crude oil prices because we rely heavily on fossil fuels for our energy production.
How Do U.S. Energy Prices Compare Against Global Costs?
Examining global crude oil prices can yield useful data, but this doesn’t quite give us a clear picture of the average consumer’s energy burden. By taking a closer look at specific cost elements, namely the electricity we use in our homes or offices and the price we pay at the gas pumps every day, we can better appreciate the situation and where we stand compared to those with which we share the planet.
The Worldwide Cost of Electricity
The countries that enjoy the cheapest electricity costs in the world are Libya – USD 0.007, Angola – USD 0.013, Sudan – USD 0.014, Kyrgyzstan -USD 0.017, and Zimbabwe – USD 0.021. These countries either have socialized oil production (e.g., Libya) or minimal power demand owing to their developmental status.
The countries with the highest electricity costs are the Solomon Islands – USD 0.692, St. Helena – USD 0.612, Vanuatu – USD 0.591, the Cook Islands – USD 0.523, and Micronesia – USD 0.484.
There’s a massive disparity between the world’s highest and lowest energy prices, making a comparison of the two extremes somewhat misleading. Let’s see how it compares with other developed nations to understand better where the United States stands on the global ranking of energy costs.
- Russia: $0.050 (Global Rank 22)
- Saudi Arabia: $0.061 (Global Rank 34)
- South Africa: $0.076 (Global Rank 47)
- China: $0.084 (Global Rank 56)
- India: $0.092 (Global Rank 63)
- United States: $0.109 (Global Rank 81)
- Canada: $0.124 (Global Rank 91)
- Australia: $0.172 (Global Rank 143)
- United Kingdom: $0.251 (Global Rank 191)
- Japan: $0.211 (Global Rank 172)
We’ve analyzed 230 countries. Some regions lack electricity pricing data for various reasons, such as minimal electricity infrastructure, lack of infrastructure, or a simple lack of reliable data. These include countries and territories such as Eritrea, Turkmenistan, Vatican City, Svalbard, Venezuela, North Korea, and Western Sahara.
The Worldwide Cost of Gasoline
How much you pay at the gas pump depends on factors beyond global crude prices. The price will be affected by government taxes, refinery costs, distribution, marketing, subsidies, etc. Let’s look at the situation in selected countries from around the world.
- India: With an average annual income of $1,822, drivers here pay $5.08 per gallon.
- Germany: With an average annual income of $39,093, drivers pay $6.81 per gallon.
- United Arab Emirates: With an average annual income of $39,306, drivers here pay $2.34 per gallon.
- South Korea: With an average annual income of $25,752, drivers pay $6.33 per gallon.
- Colombia: With an average annual income of $5,246, drivers pay $2.31 per gallon.
- South Africa: With an average annual income of $4,862, drivers pay $5.61 per gallon.
- France: With an average annual income of $33,724, drivers here pay $8.11 per gallon.
- The United States: With an average annual income of $51,916, drivers here pay $3.47 per gallon.
Sustainable Alternatives and Potential Solutions to the Looming Energy Crisis
Regardless of how well or how poorly we might be doing as a country, there’s no doubt that we need to devise effective measures to try and reduce our energy consumption to sustainable levels. With the specter of climate change and widespread pollution, here are a few workable approaches to consider.
Increased Efficiency
The Energy Star Agency estimates that with aggressive efficiency initiatives, the United States can reduce its carbon emission rates by approximately 60 per cent by 2050.
Reduced Consumption
As individuals, we can reduce our energy consumption by living in smaller homes, using public transportation, living closer to work, etc. By reducing our energy footprints, we will benefit our environment and save money on individual, corporate, and governmental levels.
Increased Renewables
We could satisfy the entire country’s electricity requirements by covering 0.6 percent of land in the United States with photovoltaic solar panels. Wind energy has also demonstrated its potential ability to provide 20 percent of our needs if we expand our wind capacity to 224 GW by 2030.
Public Policy Directives
Federal tax credits, industrial regulations, commercial incentives, conservation initiatives, Green Energy subsidies, legislative action, and other official intervention methods will be crucial in steering the country toward a sustainable energy future.
Final Thoughts
On a global scale, the average resident of the United States can be said to be faring moderately well, especially when the country’s GDP is considered. While it might not feel that way whenever your utility bills come around, or you stop at the gas pump, the reality is that things could be much worse. Even as we strive to live harmoniously with our environment, it’s unrealistic to expect the world to go carbon-free anytime soon.
Still, there are various measures we can take to reduce our pollution levels and make our energy consumption more sustainable. As we strive to resolve the various economic, geopolitical, and ecological challenges that are contributing to the rising cost of energy, let all do our part to make the United States and the world in general a better, safer, and more sustainable home for everyone.
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Sources
https://www.enerdata.net/research/energy-market-data-co2-emissions-database.html
https://www.cable.co.uk/energy/worldwide-pricing/
https://css.umich.edu/publications/factsheets/energy/us-renewable-energy-factsheet
https://www.washingtonpost.com/world/interactive/2022/gas-prices-around-the-world/
