Percent of Income Spent on Energy

Nebraskans spent eleven times as much on energy in 2015 as was spent in 1970. The amounts spent on energy in 2015 and in 1970 accounted for 8.9 percent and 11.5 percent, respectively, of consumer income. Before the oil embargo of 1973–74, annual energy expenditures were roughly an 11–percent share of personal income. During the price shocks of the 1970s and early 1980s, energy's percent share of income rose to peak at 16.6 percent. Each year after peaking, the percentage steadily fell until it was under 10 percent. The percentage went as low as 7.7 percent in 1999. Then in 2000, the percentage started rising, and in 2005, energy's percent share of income was in double digits again. In 2009, the percentage dropped 20 percent from 2008 to 10.0 percent—a major factor was the decrease in energy prices. Since then the percentage has been stable around 12 percent. In 2015, the percentage dropped to 8.9 percent due to a decrease in energy prices.

The graph below provides a bigger picture of the forty–five–year period under review. Personal income steadily climbed from under $10 billion in 1970 to over $90 billion in 2015. Energy expenditures have been stable from $667.8 million in 1970 to $8.2 billion in 2015. In 2009, energy expenditures dropped 21 percent from 2008 to just over $7 billion and, in 2015, energy expenditures dropped another 21 percent from 2014 to just over $8 billion—a major player was decreases in energy prices.