‹ U.S. States

Indiana   Indiana Profile

State Profile and Energy Estimates

Profile AnalysisPrint State Energy Profile
(overview, data, & analysis)

Last Updated: April 20, 2017

Overview

Indiana, in the nation's Interior Plains just west of the Appalachian Mountains, extends from Lake Michigan south to the Ohio River.1 Sediments deposited over millions of years,2 when the state was covered by inland seas and, later, lush swamps, became the geologic layers that contain Indiana's fossil fuel resources, predominantly coal but also oil and some natural gas.3 The flat plains and slightly rolling terrain in the northern two-thirds of the state are the result of the 2,000-foot-thick glacier that covered much of the state during the Ice Ages.4 The retreat of the glacier more than 10,000 years ago left behind the excellent topsoil that supports Indiana's agriculture.5 Ample summer rainfall and the rich prairie soils allow Indiana farmers to produce the abundant corn and soybean crops6,7,8 that make the state a major producer of ethanol and biodiesel.9,10,11,12 Indiana's open farmland also has substantial wind energy potential.13,14

Although Indiana is one of the smallest states in land area west of the Appalachian Mountains, it has a varied climate because of its length from north to south. In the north, Indiana experiences lake-effect snows and winds off Lake Michigan. In the south, the hilly terrain creates localized weather variations. The climate statewide is influenced by the interplay of polar air moving south from Canada and warm, moist air moving north from the Gulf of Mexico. Indiana's winters can be bitterly cold, spring weather often includes tornadoes, and summer days may have oppressive humidity and heat.15 In part because of those weather extremes, Indiana's residential energy use per capita is well above the national average.16 The industrial sector is the state's largest energy consumer, using between two-fifths and one-half of all energy.17 Indiana's industrial activities include the energy-intensive chemical, petroleum, transportation equipment, and steelmaking industries.18,19,20 The state consumes more energy than it produces.21

Petroleum

The Trenton Field, discovered in east-central Indiana in the late 1800s, was the nation's first oil field to produce more than 100 million barrels of crude oil.22 Trenton Field resources helped draw heavy industry to the state. The field ceased production in the early 20th century, and crude oil production moved to the Illinois Basin in southwestern Indiana, where output peaked in 1956.23 Use of advanced drilling technology has helped boost Indiana crude oil production somewhat in recent years,24,25 but, in 2016, the state produced fewer than 2 million barrels of crude oil, less than 0.01% of U.S. production.26 Indiana has only minor proved crude oil reserves.27

The Whiting refinery in Indiana is the largest inland crude oil refinery in the nation.

Indiana has two crude oil refineries.28 The Whiting refinery, located in northwest Indiana, is the largest inland crude oil refinery in the nation; only six Gulf Coast refineries can process more crude oil per day.29,30 A recent modernization project at the Whiting refinery increased the share of heavy, sour crude oil that can be processed there from about one-fifth of the crude oil feedstock to about four-fifths.31 A second, small refinery, located in the state's southern tip at Mount Vernon, processes Illinois Basin crude oil.32

Indiana is a major consumer of petroleum and petroleum products, which enter the state via three interstate crude oil pipelines and six refined product pipelines.33 Nearly half of Indiana's petroleum consumption is in the form of motor gasoline, and another third is distillate fuel oil, including diesel fuel.34 Although conventional motor gasoline is used in most of Indiana, reformulated motor gasoline blended with ethanol is required in the state's northwest near Chicago.35 In addition, motor gasoline formulated to reduce emissions that contribute to ground-level ozone is required during the summer months in Indiana's southeast near Louisville, Kentucky.36 Distillate fuel sales to the residential sector have been declining over the past three decades.37 Currently, fewer than 1% of Indiana households use fuel oil or kerosene for home heating, and 7% use liquefied petroleum gases (LPG).38

Natural gas

Early discoveries of natural gas in the late 1870s helped attract industry to east central Indiana, but unregulated development caused the loss of much of the resource. Indiana currently has few proved natural gas reserves,39 but the advent of advanced drilling technology has created interest in the New Albany Shale gas play in the state's south, which, along with potential coalbed methane resources, could add significant new natural gas reserves.40 Indiana has little natural gas production,41,42 and the state's output is much lower than demand.43 Indiana is crossed by a dozen major interstate natural gas pipelines, which supply state consumers with natural gas from the United States and Canada.44,45,46 Natural gas enters Indiana primarily via Illinois and Kentucky, and a majority of the natural gas shipped into the state is sent on to Michigan and Ohio.47 Indiana does not have any natural gas market hubs. The state has 21 natural gas storage fields48 with a total working capacity of about 33.6 billion cubic feet, less than 1% of U.S. storage capacity.49

The industrial sector is the largest consumer of natural gas in Indiana and uses half of all natural gas consumed in the state. The industrial sector increased its use of natural gas from 2010 to 2015 by nearly 30%.50 The residential sector accounts for only about one-sixth of the natural gas consumed in Indiana, even though three-fifths of households use natural gas for home heating.51 The state's electric power sector has increased its use of natural gas for power generation significantly since 2009. In 2016, electric power sector consumption comprised one-fifth of state consumption, exceeding residential sector use for the first time.52

Coal

Indiana is the nation’s third largest coal consumer, after Texas and Illinois.

Indiana is one of the top 10 coal-producing states in the nation. Bituminous coal is produced from 15 surface and 9 underground mines located within the Illinois Basin in southwestern Indiana.53,54,55 About one-fourth of the coal produced in Indiana is shipped to a dozen other states by rail, barge, and truck. The other three-fourths is consumed in Indiana, but production meets less than two-thirds of demand.56 The rest of the coal consumed in Indiana arrives by rail and barge, primarily from mines in Illinois, Kentucky, Wyoming, West Virginia, and Pennsylvania.57

Both Indiana's total coal consumption and its coal consumption for electricity generation rank third in the nation, after Texas and Illinois.58,59 The state is also third, after Pennsylvania and North Dakota, in coal tonnage used by the industrial sector, even though the sector's coal consumption declined by more than two-fifths between 2010 and 2015.60,61 Nearly one-tenth of the coal used in Indiana is delivered to coking plants,62 which supply coke to the state's steel industry.63 Indiana is a leader in steel manufacturing.64

Electricity

More than four-fifths of Indiana's electricity generation has historically been fueled by coal, but coal's share is declining. In 2016, only 7 of every 10 megawatthours was generated by coal, while the 2016 share of net generation from natural gas more than doubled from two years earlier, to nearly 2 of every 10 megawatthours.65,66 Nine of the state's 10 largest power plants are still coal-fired,67 but more than 1,000 megawatts of older coal-fired generating capacity was retired during 2016, and the 200 megawatts of new capacity brought on line was all powered by renewables, three-fourths of it by wind.68 Wind provided nearly 5% of Indiana's electricity generation in 2016, and biomass, solar, and hydroelectricity supplied most of the rest. Nearly all of Indiana's solar generation comes from larger, utility-scale facilities.69

Sales of electricity to Indiana’s industrial sector are among the highest in the nation.

Indiana consumers use more electricity than in-state generators can supply. In 2016, one-eighth of Indiana's electricity supply came from the two interstate power grids serving Indiana: the PJM Interconnect in the northeast and the Midcontinent Independent System Operator in the west and south.70,71 Retail sales of electricity to Indiana's energy-intensive industrial sector are among the highest in the nation.72,73 Per capita total electricity consumption in Indiana is in the top one-third of states.74,75 Slightly more than one-fourth of Indiana households rely on electricity as their main source of energy for home heating.76

Renewable energy

Indiana is among the nation's top producers of biofuels. Drawing on the state's abundant crops of corn and soybeans, Indiana's ethanol plants use corn as their feedstock, and biodiesel plants use soy oil, as well as animal fats from the state's livestock industry.77,78,79,80 Indiana is the fifth largest producer of ethanol and has the sixth largest production capacity for biodiesel in the nation.81,82

Renewable energy supplied 6% of Indiana's net electricity generation in 2016.83 Wind has become the primary renewable resource used for electric power generation in the state.84 In 2008, Indiana's first utility-scale wind project, the Benton County Wind Farm, began operating in Indiana's northwest.85 Currently, the state has nearly 1,900 megawatts of installed wind capacity, including the 500-megawatt Meadow Lake Wind Farm that stretches across three counties and is the 11th-largest wind project in the nation.86,87 In 2016, nearly 5% of Indiana's electricity generation came from wind turbines.88 The rest of Indiana's renewable generation came from biomass, hydroelectric power, and solar photovoltaic (PV) facilities.89,90 Indiana has one large geothermal installation, at Ball State University in Muncie, Indiana.91 The system, when completed, will replace aging coal-fired boilers and provide heating and cooling to 47 university buildings.92,93

Indiana utilities offer net metering for customer-sited renewable generating facilities of less than 1 megawatt capacity.94 At the end of 2015, more than 8 megawatts of solar PV capacity and 4.5 megawatts of wind capacity were connected under the net metering program.95 Indiana also offers feed-in tariffs for small-scale wind, solar, and biogas generating facilities, such as anaerobic digesters. As of June 2016, there were 124 megawatts of capacity under feed-in contracts in Indiana, of which nearly nine-tenths was solar PV.96 Under each program, utilities may limit connections to 1% of peak summer load.

In 2011, Indiana's legislature created a voluntary clean energy portfolio standard that aims to get 10% of electricity supply from clean technologies by 2025.97 Power suppliers are eligible for increases in their allowable profit if they participate successfully.98 Eligible technologies include wind, solar, coalbed methane, clean coal technology, nuclear energy, combined heat and power systems, and natural gas that displaces electricity from coal.99,100 As of mid-2016, no Indiana utility had chosen to participate.101 A state energy efficiency program for electric utilities, Energizing Indiana, began in 2010 and was ended in 2014. Under 2015 legislation, state regulators are including efficiency in utility integrated resource planning.102,103

Endnotes

1 World Atlas, Indiana Geography, updated July 14, 2016.
2 U.S. Geological Survey, Geologic Provinces of the United States: Interior Plain Province, updated December 15, 2016.
3 U.S. Energy Information Administration (EIA), Indiana, Profile Data, Reserves & Supply, accessed March 14, 2017.
4 Indiana Geological Survey, Surficial Geology, accessed March 14, 2017.
5 City-Data, Indiana—Topography, accessed March 14, 2017.
6 Indiana State Climate Office, About Indiana Climate (December 2002).
7 Truitt, Gary, "Indiana Sets Record for 2014 Corn and Soybean Yield," Hoosier Ag Today (January 12, 2015).
8 Cook, Rob, "States That Produce the Most Corn," Beef2Live (March 14, 2017).
9 Ethanol Producer Magazine, U.S. Ethanol Plants, Existing, All Platforms, updated February 14, 2017.
10 U.S. EIA, Indiana State Energy Profile, Data, Environment, accessed March 14, 2017.
11 Nebraska Energy Office, Ethanol Facilities' Capacity by State, updated October 20, 2016.
12 U.S. EIA, Monthly Biodiesel Production Report (December 2016), Table 4, Biodiesel producers and production capacity by state, December 2016.
13 American Wind Energy Association, Indiana Wind Energy, accessed March 14, 2017.
14 Tindera, Michela, and Jimmy Jenkins, "Tilting at Windmills: A Closer Look at Indiana's Expanding Wind Power Industry," Investigative Journalism Education Consortium (July 24, 2013).
15 Indiana State Climate Office, About Indiana Climate (December 2002).
16 U.S. EIA, State Energy Data System, Table C13, Energy Consumption Estimates per Capita by End-Use Sector, Ranked by State, 2014.
17 U.S. EIA, State Energy Data System, Table C10, Energy Consumption Estimates by End-Use Sector, Ranked by State, 2014.
18 U.S. Bureau of Economic Analysis, Regional Data, GDP & Personal Income, Begin using the data, Annual Gross Domestic Product (GDP) by State, GDP in Current Dollars, Classification NAICS, All Industries, Area Indiana, Time Period 2013–15.
19 Pete, Joseph, "Indiana Remains National Champion of Steel Production," nwitimes.com (March 12, 2016).
20 Lynch, John, and Timothy F. Slaper, "Indiana's Outlook for 2016," Indiana Business Review (Winter 2015).
21 U.S. EIA, State Energy Data System, Table P3, Energy Production and Consumption Estimates in Trillion Btu, 2014.
22 Indiana Geological Survey, Oil and Gas — A Brief Overview of the History of the Petroleum Industry In Indiana, Trenton Field, accessed March 14, 2017.
23 Indiana Geological Survey, Oil and Gas — A Brief Overview of the History of the Petroleum Industry In Indiana, The History of Gas and Oil Exploration, accessed March 14, 2017.
24 McDivitt, Herschel, Hydraulic Fracturing 101, Indiana Division of Oil and Gas, slide 35, Indiana Hydraulic Fracturing Trends, updated October 15, 2014.
25 U.S. EIA, Indiana Field Production of Crude Oil, 1981–2016.
26 U.S. EIA, Crude Oil Production, Annual-Thousand Barrels, 2011–16.
27 U.S. EIA, Crude Oil Proved Reserves, Reserves Changes, and Production, Proved Reserves as of 12/31, Annual, 2010–15.
28 U.S. EIA, Refinery Capacity Report (June 22, 2016), Table 3, Capacity of Operable Petroleum Refineries by State as of January 1, 2016.
29 U.S. EIA, Oil: Crude and Petroleum Products Explained, Refining Crude Oil, updated July 10, 2015.
30 U.S. EIA, Indiana, Profile Overview, Map Layers, Petroleum Refinery, accessed March 14, 2017.
31 BP Global, "BP starts up new crude unit at Whiting Refinery," Press Release (July 1, 2013).
32 CountryMark, About Us, Refinery, accessed March 14, 2017.
33 U.S. EIA, Indiana, Profile Data, Distribution & Marketing, accessed March 14, 2017.
34 U.S. EIA, State Energy Data System, Table C3, Primary Energy Consumption Estimates, 2014.
35 U.S. Environmental Protection Agency, Gasoline Standards, Reformulated Gasoline, updated December 5, 2016.
36 U. .S. Environmental Protection Agency, Gasoline Standards, Gasoline Reid Vapor Pressure, updated December 5, 2016.
37 U.S. EIA, Indiana Total Distillate Sales/Deliveries to Residential Consumers, 1984–2015.
38 U.S. Census Bureau, American FactFinder, Indiana, Table B25040, House Heating Fuel, 2011–15 American Community Survey 5-Year Estimates.
39 U.S. EIA, U.S. Crude Oil and Natural Gas Proved Reserves, Year-End 2015 (December 2016), Table 10, Total natural gas proved reserves, reserves changes, and production, wet after lease separation, 2015.
40 Indiana Geological Survey, Oil & Gas — A Brief Overview of the History of the Petroleum Industry in Indiana, Trenton Field, accessed March 14, 2017.
41 U.S. EIA, Natural Gas Gross Withdrawals and Production, Annual, 2011–16.
42 U.S. EIA, Indiana Natural Gas Gross Withdrawals, 1967–2015.
43 U.S. EIA, Natural Gas Consumption by End Use, Total Consumption, Annual, 2011–16.
44 U.S. EIA, Indiana. Profile Data, Distribution & Marketing, updated March 16, 2017.
45 Texas Gas Transmission, LLC, Overview, accessed March 21, 2017.
46 Northern Border Pipeline Co., Northern Border Pipeline, accessed March 21, 2017.
47 U.S. EIA, International & Interstate Movements of Natural Gas by State, Indiana, Annual, 2010–15.
48 U.S. EIA, Underground Natural Gas Storage Capacity, Total Number of Existing Fields, Annual, 2010–15.
49 U.S. EIA, Underground Natural Gas Storage Capacity, Total Working Gas Capacity, Annual, 2010–15.
50 U.S. EIA, Indiana Industrial Natural Gas Consumption, 1997–2016.
51 U.S. Census Bureau, American FactFinder, Indiana, Table B25040, House Heating Fuel, 2011–15 American Community Survey 5-Year Estimates.
52 U.S. EIA, Natural Gas Consumption by End Use, Indiana, Annual, 2011–16.
53 U.S. EIA, Annual Coal Report 2015 (November 2016), Table 6, Coal Production and Number of Mines by State and Coal Rank, 2015.
54 Indiana Department of Natural Resources, Active Mining Permits Map, accessed March 27, 2017.
55 U.S. EIA, Annual Coal Report 2015 (November 2016), Table 1, Coal Production and Number of Mines by State and Mine Type, 2015 and 2014.
56 U.S. EIA, Annual Coal Distribution Report 2015 (November 2016), Domestic distribution of coal by origin State, consumer, destination and method of transportation, Indiana.
57 U.S. EIA, Annual Coal Distribution Report 2015 (November 2016), Domestic distribution of coal by destination State, consumer, destination and method of transportation, Indiana.
58 U.S. EIA, State Energy Data System, Table C2, Energy Consumption Estimates for Major Energy Sources in Physical Units, 2014.
59 U.S. EIA, Annual Coal Report 2015 (November 2016), Table 26, U.S. Coal Consumption by End Use Sector, Census Division, and State, 2015 and 2014.
60 U.S. EIA, State Energy Data System, Table F17, Coal Consumption Estimates and Imports and Exports of Coal Coke, 2015.
61 U.S. EIA, State Energy Consumption Estimates, 1960 Through 2014, DOE/EIA-0214(2014), (June 2016), Indiana Table CT6, p. 179.
62 U.S. EIA, Annual Coal Distribution Report 2015 (November 2016), Domestic distribution of coal by destination State, consumer, destination and method of transportation, Indiana.
63 Illinois Sustainable Technology Institute, Primary Metals, Chapter 2, The Steel Making Industry, accessed March 21, 2017.
64 Pete, Joseph, "Indiana Remains National Champion of Steel Production," nwi.com (March 12, 2016).
65 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.3.B, 1.4.B, 1.7.B.
66 U.S. EIA, Electricity, Detailed State Data, Net Generation by State by Type of Producer by Energy Source (EIA-906, EIA-920, and EIA-923), 1990–2015.
67 U.S. EIA, State Electricity Profiles, Indiana Electricity Profile 2015, Table 2, Ten Largest Plants by Generation Capacity, 2015.
68 U.S. EIA, Electric Power Monthly (February 2017), Tables 6.3 and 6.4.
69 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.3.B, 1.10.B, 1.11.B, 1.14.B, 1.15.B, 1.17.B.
70 U.S. EIA, Indiana Electricity Profile 2015, Table 10, Supply and disposition of electricity, 1990 through 2015.
71 U.S. Federal Energy Regulatory Commission, Regional Transmission Organizations (RT)/Independent System Operators (ISO), updated March 13, 2017.
72 U.S. EIA, Electric Power Monthly (February 2017), Table 5.4.B.
73 Pete, Joseph, "Indiana Remains National Champion of Steel Production," nwitimes.com (March 12, 2016).
74 U.S. EIA, State Energy Data System, Table F21, Electricity Consumption Estimates, 2015.
75 U.S. Census Bureau, State Population Totals Tables: 2010–2016, Annual Estimates of the Resident Population for the United States, Regions, States, and Puerto Rico: April 1, 2010 to July 1, 2016 (NST-EST2016-01), 2015 Population Estimates.
76 U.S. Census Bureau, American FactFinder, Indiana, Table B25040, House Heating Fuel, 2011–15 American Community Survey 5-Year Estimates.
77 Truitt, Gary, "Indiana Sets Record for 2014 Corn and Soybean Yield," Hoosier Ag Today (January 12, 2015).
78 NETSTATE, Indiana Economy, updated February 25, 2016.
79 Ethanol Producer Magazine, U.S. Ethanol Plants, Existing, updated February 14, 2017.
80 Biodiesel Magazine, USA Plants, Existing, updated December 12, 2016.
81 Nebraska Energy Office, Ethanol Facilities' Capacity by State, updated October 20, 2016.
82 U.S. EIA, Monthly Biodiesel Production Report (December 2016), Table 4, Biodiesel producers and production capacity by state, December 2016.
83 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.3.B, 1.10.B, 1.11.B.
84 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.10.B, 1.11.B, 1.14.B.
85 Benton County, Indiana, Wind Farms, Benton County Wind Farm, accessed March 21, 2017.
86 EDP Renewables, Indiana-Meadow Lake, accessed March 21, 2017.
87 American Wind Energy Association, Indiana Wind Energy, accessed March 21, 2017.
88 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.3.B, 1.14.B.
89 U.S. EIA, Electric Power Monthly (February 2017), Tables 1.3.B, 1.10.B, 1.15.B, 1.17.B.
90 Indiana Office of Energy Development, Overview of Renewable Energy Resources, accessed March 22, 2017.
91 U.S. Department of Energy, Energy Efficiency and Renewable Energy, Indiana (March 2013), p. 4.
92 Ball State University, "BSU Shutting Down Coal Boilers," Press Release (March 17, 2014).
93 Kaufman, Michelle, "Geothermal project to be completed within a year," The Daily News (June 8, 2016).
94 NC Clean Energy Technology Center, DSIRE, Net Metering, Indiana, updated November 24, 2015.
95 Indiana Utility Regulatory Commission, 2016 Annual Report (September 2016), p. 31.
96 Indiana Utility Regulatory Commission, 2016 Annual Report (September 2016), p. 34.
97 Indiana Utility Regulatory Commission, Indiana Voluntary Clean Energy Portfolio Standard Program, accessed March 21, 2017.
98 Indiana Office of Energy Development, Indiana Choice Program, accessed March 21, 2017.
99 Indiana Office of Energy Development, CHOICE Program FAQ, accessed March 21, 2017.
100 NC Clean Energy Technology Center, DSIRE, Indiana, Clean Energy Portfolio Standard, updated November 20, 2015.
101 Indiana Utility Regulatory Commission, 2016 Annual Report (September 2016), p. 34.
102 American Council for an Energy Efficient Economy, State and Local Policy Database, Indiana, updated June 2016.
103 U.S. EIA, Annual Energy Outlook 2016, DOE/EIA-0383(2016), (August 2016), p. LR-18.