Global natural gas industry - statistics & facts
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Nearly one fourth of all energy consumed in the world comes from natural gas. The fossil fuel, which is often produced alongside oil, slowly grew in importance to the world’s energy market before supply constraints in 2022 coupled with diversification measures saw its shares of the energy mix decrease to around 23 percent in recent years. State-owned companies such as PetroChina, Gazprom, and Saudi Aramco are the world’s leading natural gas producing companies.
The U.S. is the world's largest natural gas producer and also among the top exporters of gaseous state natural gas shipped via pipelines to neighboring Canada and Mexico. However, the greatest proved reserves are found in conventional reservoirs in the Middle East.
Costs for purchasing this commodity tend to be lower in producer countries. This is particularly noticeable when comparing natural gas prices in the U.S. and Europe. People in Europe often pay twice as much for natural gas as U.S. residents, with the gap having widened tremendously during the 2021/2022 energy supply shortage.
Despite rising costs, worldwide natural gas demand has remained robust and many countries continue to invest heavily in natural gas trading infrastructure, such as LNG import and export terminals.
Largest producing countries and main transportation routes
Global natural gas production has risen by around 60 percent since the late 1990s and today reaches an excess of four trillion cubic meters per year.The U.S. is the world's largest natural gas producer and also among the top exporters of gaseous state natural gas shipped via pipelines to neighboring Canada and Mexico. However, the greatest proved reserves are found in conventional reservoirs in the Middle East.
Natural gas uses and increasing price volatility
Natural gas has a wide range of uses. It is a primary source for heating and electricity generation and a major feedstock for chemical products such as fertilizers and plastics. Due to it having a lower carbon content than other fossil fuels, natural gas advocates have promoted its use as a bridge fuel in the energy transition. As a result, governments of large-scale energy consumers such as Germany and the United States have become heavily reliant on this fuel. A development which particularly affected European consumers in the wake of the Russia-Ukraine war and limited supply routes.Costs for purchasing this commodity tend to be lower in producer countries. This is particularly noticeable when comparing natural gas prices in the U.S. and Europe. People in Europe often pay twice as much for natural gas as U.S. residents, with the gap having widened tremendously during the 2021/2022 energy supply shortage.
Despite rising costs, worldwide natural gas demand has remained robust and many countries continue to invest heavily in natural gas trading infrastructure, such as LNG import and export terminals.
