Natural gas is the Prince of Hydrocarbons - the cleanest of the three fossil fuels: oil, natural gas and coal - and the most versatile in its uses. Currently, natural gas is the #2 source of energy in the US, after oil (41%), meeting 23% of domestic energy needs and it is the #3 source for producing electricity (18%), after coal (49%) and nuclear (20%).

The single largest factor affecting natural gas demand is weather where heating and cooling needs in buildings represent 35% of all natural gas use. Industrial use of natural gas, as a chemical feedstock, for process heat and for self generation of electricity amounts for 38% of natural gas use while electric power generation represents 24% of natural gas use. (This is interesting to consider in contrast to coal, hydroelectric and nuclear power which are solely used for electricity production, and oil, for which 67% of demand goes to transportation fuels.)

It is notable that in 2005, the hottest year on record and a year with significant hurricane related supply interruptions that the demand for natural gas rose approximately 0.5% in spite of a 45% increase in wellhead prices.

US natural gas supply is met through domestic production, imports from Canada and in the form of liquified natural gas (LNG). 2005 imports of natural gas accounted for approximately 16% of total supply with 13.5% coming from Canada and 2.5% coming from LNG. The Energy Information Agency expects the US to have to import 21% of its supply by 2030 with most of that growth coming from LNG.

Click here for a graphical summary of the current US natural gas industry.
Click here for a graphical summary of the Energy Information Agency 2030 forecast.