Increasing Energy Demand Highlights Need for More Energy Development

A new report by energy analysts at FTC highlights a pivotal shift in American energy consumption, with rising electricity demand reshaping the nation’s energy landscape. For two decades, demand remained relatively flat, allowing utilities to rely on traditional demand-side management programs. However, projections now indicate a 57% rise in electricity demand by 2050. To meet this surge, a balanced approach that includes robust domestic energy production and energy infrastructure development is essential—particularly for oil and gas, which remain both affordable and reliable.

ICF’s findings reveal that by 2028, U.S. electricity demand could increase by an average of 9%, while peak demand may rise by 5%. This escalation poses challenges to utilities transitioning to clean energy due to grid limitations, lengthy project approval times, and insufficient transmission capacity. While renewable sources like solar and wind are vital for the future, the infrastructure constraints underscore the need for immediate solutions. Expanding domestic oil and gas production is a practical measure to ensure energy reliability and affordability during this transition.

Recent Federal Energy Regulatory Commission (FERC) orders aim to streamline interconnection processes and alleviate grid bottlenecks, but the current five-year average timeline for new projects remains a significant hurdle. Moreover, geographic disparities in demand growth complicate the deployment of clean energy infrastructure, requiring tailored regional strategies. For densely populated cities, the challenge of securing land and navigating environmental regulations for new projects makes oil and gas production an indispensable component of a reliable energy mix.

The report also warns of rising costs: utilities could face a 19% increase in electricity expenses by 2028, much of which will likely be passed on to customers. This highlights the urgency for utilities and policymakers to strike a balance between clean energy ambitions and practical solutions to meet demand growth.

While renewable energy and grid modernization are crucial long-term goals, they must be supplemented with reliable energy sources that can meet the immediate needs of American consumers. In this era of rapid demand growth, embracing a diversified energy portfolio—leveraging both clean energy and traditional oil and gas—will pave the way for a stable, affordable, and reliable energy future.