What is natural gas?

Natural gas is a combustible gaseous mixture of hydrocarbons, mostly methane. 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.

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.

How much natural gas is used in the U.S.? In 2007, U.S. natural gas consumption reached 23.0 trillion cubic feet (Tcf), up from 2006 and close to the historical peak in U.S. natural gas consumption that occurred in 2000 when 23.3 Tcf were consumed. The electric power sector consumed the greatest portion with 6.8 Tcf consumed in 2007. The industrial sector used 6.6 Tcf in 2007. In 2007 residential natural gas consumption was 4.7 Tcf. 2007 commercial sector natural gas consumption was 3.0 Tcf.

Natural Gas Use in 2007 Source: Energy Information Administration, Natural Gas Annual

What States use the most natural gas?
The top natural gas consuming States in 2007 were:

• Texas
• California
• Louisiana
• New York
• Illinois
• Florida

What is the outlookfor natural gas use?

Total natural gas consumption is projected to increase from 23.0 trillion cubic feet in 2007 to a peak value of 24.7 trillion cubic feet in 2026, followed by a decline to 24.4 trillion cubic feet in 2030. The natural gas share of total energy consumption drops slightly from 23 percent in 2007 to 22 percent in 2030.

What is the world demand and outlook for natural gas?

In 2006, world natural gas consumption was 105.5 Tcf. Russia, which consumed 16.6 Tcf, and the United States, which consumed 21.7 Tcf, accounted for 37 percent of the total.   

Worldwide consumption of natural gas is projected to increase by nearly 66 percent between 2005 and 2030. Among the end-use sectors, the industrial sector remains the largest consumer of natural gas worldwide, accounting for 44 percent of the total increase in demand for natural gas between 2005 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 158.0 Tcf.

 

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