The Honest Broker Newsletter • 1177 implied HN points • 02 Mar 26
- Since 1970 the physical energy intensity of major fossil fuels has fallen sharply—about 70% for gasoline, 64% for natural gas, and 84% for coal—driven by 1970s price shocks, policy, technology, and a shift toward services.
- The 1970s were a turning point: economic growth began to decouple from rising fuel use so GDP could grow while physical fuel consumption fell, but the share of GDP spent on energy still swings with volatile global commodity prices.
- Coal now represents a vanishingly small share of the economy (around 0.1% of GDP) despite high political attention, while electricity’s intensity has declined less because the economy is electrifying and could rise again if EVs and AI data centers boost demand.