Natural gas energy in the U.S. - statistics & facts
Natural gas is the main source of electricity generation in the United States. Having overtaken coal in 2016, natural gas has become indispensable for the U.S. power sector. The country requires energy at ever-increasing amounts for residential, commercial, and industrial purposes. Natural gas has met much of this need especially following the implementation of hydraulic fracturing in the early 2010s.
In 2023, the price for natural gas was roughly 3.36 U.S. dollars per million British thermal unit of electricity generated. While average installation costs for natural gas generators ranged between 722 and 1,677 U.S. dollars per kilowatt, depending on the technology type.
Although there has been greater emphasis on renewable fuels in recent years, the role of natural gas for electricity generation worldwide is expected to increase in the coming decades.
The natural gas supply chain and costs
Natural gas is made up of compounds of hydrogen and carbon. Once extracted from an underground reservoir, it is transferred to a processing plant to remove impurities and by-products. Methane and other useful gases are often separated from natural gas to be further used in the petrochemical industry. The processed gas, called dry or consumer-grade natural gas, is then sent through pipelines and stored in underground fields or towards distribution companies that send the gas to consumers.In 2023, the price for natural gas was roughly 3.36 U.S. dollars per million British thermal unit of electricity generated. While average installation costs for natural gas generators ranged between 722 and 1,677 U.S. dollars per kilowatt, depending on the technology type.
Largest producers and consumers
The electric power sector is the largest natural gas consumer in the country. In 2023, U.S. natural gas energy consumption reached over 32 quadrillion British thermal units, with utilities accounting for around one third of that amount. Most of the natural gas used in the U.S. is produced domestically. More than one trillion cubic meters were extracted in 2023, while Texas was the leading natural gas energy producer in the country.Although there has been greater emphasis on renewable fuels in recent years, the role of natural gas for electricity generation worldwide is expected to increase in the coming decades.
