Michigan's Energy

Like a number of other states, the energy picture for Michigan is one of all-of-the-above.

Michigan's crude oil reserves and production are modest. The state's oil production has declined from a peak of 34.7 million barrels per year in 1979 to about 5.4 million barrels in 2017.  In 2016, the state consumed 171 million barrels of petroleum (2.4% of U.S. consumption).

The state holds about 0.4% of the U.S. proved natural gas reserves and has about 9,600 producing natural gas wells. However, Michigan's natural gas production is declining, and 2016 output was only one-third of the state's peak production seen in 1997.  In 2016, Michigan consumed 891 billion cubic feet of natural gas: one-ninth came from production inside the state and the rest from other states and Canada.

Coal fuels the largest share of Michigan's electricity generation, and 3 of the 10 largest power plants in the state are coal-fired. However, in 2017, coal fueled less than two-fifths of the state's net generation.  

Michigan's renewable energy resources are spread across the state, contributing to about 8% of Michigan's net electricity generation.

The natural gas and oil industry supports 182,000 jobs in Michigan, contributing $8.8 billion to the state's labor income.  Industry salaries (non-gas station employees) averages $75,731, which is 60% higher than the state's all-industry average salary of $48,043.  The industry also contributes $15.8 billion to the state's economy. 

See energy infographic for the Great Lakes State.

The point here is that the United States and Michigan use an array of energies to run economies, to fuel commerce, transportation and daily living.  Natural gas and oil lead this portfolio, supplying 66 percent of the energy the U.S. uses, and is projected by EIA to supply 60-percent of our energy for decades.  

The ongoing domestic energy renaissance, featuring significant increases in oil and gas production, has been good for U.S. energy security. And it is proving good for the environment too.  Thank to natural gas, our carbon emissions are at 25 year lows, all while energy production is increasing.  That is real energy leadership.   

Energy is essential for virtually every aspect of our modern daily lives. It powers national, state and local economies, gets us to work, is used to make thousands of products, and is something we rely on for health and comfort.

Safe, responsible energy development here at home is linked to national security as well as Americans’ individual prosperity and liberty – in Michigan and all the 50 states of energy.