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Natural Gas Consumption            
Last Updated: March 2007
Next Update: February 2008


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For centuries, natural gas has been used in various parts of the world. Two-thousand years ago, the Chinese piped natural gas through bamboo poles from shallow wells. They then burned the gas to heat large pans to evaporate sea water for salt. It is believed that the first commercial use of natural gas in the Western World was for street lighting in Genoa, Italy, in 1802.

Natural gas is mostly methane. It is best known as the fuel that produces the blue flame that heats our food, our water, and our homes and buildings. It is also used to generate electricity, provide heat for industrial processes, and as a raw material to produce petrochemicals, plastics, paints, and a wide variety of other products.

In 2005, U.S. natural gas consumption reached 22.2 trillion cubic feet (Tcf), down 1 percent from 2004. The historical peak in U.S. natural gas consumption occurred in 2000 when 23.3 Tcf were consumed.

Residential natural gas consumption in 2005 was 4.8 Tcf. Commercial natural gas consumption in 2005 was 3.1 Tcf. Industrial consumption in 2005 was 6.7 Tcf, about 7 percent lower than in 2004. The electric power sector consumed 5.9 Tcf of natural gas in 2005, which was a 7 percent increase over 2004.

Total U.S. natural gas consumption is forecasted to increase from 22.2 Tcf in 2005 to 26.1 Tcf in 2030. Most of the increase is seen before 2020, when total U.S. natural gas consumption reaches 26.3 Tcf.  After 2020, high natural gas prices limit consumption to about 26 Tcf through 2030.  Consequently, the natural gas share of total energy consumption drops from 23 percent in 2005 to 20 percent in 2030.

 

Natural Gas Use in 2005

A pie diagram of natural gas use. Pipeline fuel - 2.6%, vehicle fuel - 0.1%, electric utilities - 26.4%, commercial - 14%, residential use - 21.6%, industrial use - 30.3%, oil & gas industry operations - 5.0%'

 

In 2004, world natural gas consumption was 99.7 Tcf. Russia, which consumed 16.0 Tcf, and the United States, which consumed 22.4 Tcf, accounted for 39 percent of the total.   Worldwide consumption of natural gas is projected to increase by nearly 91 percent between 2003 and 2030. Among the end-use sectors, the industrial sector remains the largest consumer of natural gas worldwide, accounting for 50 percent of the total increase in demand for natural gas between 2003 and 2030. Natural gas also is expected to remain an important energy source in the electric power sector, particularly for new generating capacity.  By the year 2030, total world consumption of natural gas is expected to be 182 Tcf.

More information on this subject can be found in the following EIA publications: Monthly Energy Review, Natural Gas Monthly, Natural Gas Annual, International Energy Annual, Annual Energy Outlook, and International Energy Outlook.