Energy-Water Nexus: The Energy Sector’s Water Use Page: 2 of 14
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Energy-Water Nexus: The Energy Sector's Water Use
Summary
Water and energy are critical resources that are reciprocally linked; this interdependence is often
described as the water-energy nexus. Meeting energy-sector water needs, which are often large,
depends upon the local availability of water for fuel production, hydropower generation, and
thermoelectric power plant cooling. The U.S. energy sector's use of water is significant in terms
of water withdrawals and water consumption. In 2005, thermoelectric cooling represented 41% of
water withdrawn nationally, and 6% of water consumed nationally. The majority of the
anticipated increase in water consumption by 2030 is attributed to domestic biofuel and oil and
gas production. Policy makers at the federal, state, and local levels are faced with deciding
whether to respond to the growing water needs of the energy sector, and if so, which policy levers
to use (e.g., tax incentives, loan guarantees, permits, regulations, planning, or education). Many
U.S. energy sector water decisions are made by private entities, and state entities have the
majority of the authority over water use and allocation policies and decisions.
For fuel production, water is either an essential input or is difficult and costly to substitute, and
degraded water is often a waste byproduct that creates management and disposal challenges. U.S.
unconventional oil and gas production has expanded quickly since 2008, and U.S. natural gas and
coal exports may rise. This has sparked interest in the quantities of water and other inputs
"embedded" in these resources, as well as the wastes produced (e.g., wastewaters from oil and
gas extraction). Much of the growth in water demand for unconventional fuel production is
concentrated in regions with already intense competition over water (e.g., tight gas and other
unconventional production in Colorado, Eagle Ford shale gas and oil in south Texas), preexisting
water concerns (e.g., groundwater decline in North Dakota before Bakken oil development), or
regions with abundant, but ecologically sensitive surface water resources (e.g., Marcellus shale
region in Pennsylvania and New York).
Conventional hydropower accounts for approximately 8% of total U.S. net electricity generation,
and more than 80% of U.S. electricity is generated at thermoelectric facilities that depend on
cooling water. Water availability issues, such as regional drought, low flow, or intense
competition for water can curtail hydroelectric and thermoelectric generation. An assessment of
the drought vulnerability of electricity in the western United States found broad resiliency, while
also identifying the Pacific Northwest and the Texas grid at higher risk. Future withdrawals
associated with electric generation may grow slightly, remain steady, or decline depending on a
number of factors. These include reduced generation from facilities using once-through cooling
because of compliance with proposed federal cooling water intake regulations or shifts in how
electricity is generated (e.g., less from coal and more from wind and natural gas).
Energy choices represent complex tradeoffs; water use and wastewater byproducts are two of
many factors to consider when making energy choices. For many policymakers, concerns other
than water-low-cost reliable energy, energy independence and security, climate change
mitigation, public health, and job creation-are more significant drivers of their positions on
energy policies.Congressional Research Service
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Carter, Nicole T. Energy-Water Nexus: The Energy Sector’s Water Use, report, August 30, 2013; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc817855/m1/2/: accessed April 23, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.