As many states are beginning to look at alternative energy sources to balance their energy portfolio, natural gas is still a critical component to consider in our nation’s energy supply. According to the Energy Information Administration (EIA), energy from natural gas accounts for 23% of total energy consumed in the United States. Almost one-third of this goes to residential and commercial uses, one-third to industrial uses, and one-third to electric power production. Only about one-tenth of one percent of natural gas is currently used for transportation fuel.
The top four natural gas producing states are: Texas, Wyoming, Oklahoma, and New Mexico. Texas, California, Louisiana, and New York are the top four states that consume natural gas. While the natural gas industry is regulated by the Federal Energy Regulatory Commission, state legislators play a critical role in determining the role natural gas plays in their state’s energy plan. State legislators have introduced bills to determine how natural gas can be used within a state, to allow for the construction of natural gas plants, and the prohibition of natural gas drilling in certain areas.
According to the Department of Energy, because natural gas burns cleaner than other fossil fuels, the use of natural gas has been increasing in both residential and commercial markets. In 2000, 23,453 MW of new electric capacity was added in the US, and 95% of these new additions used natural gas to generate the electricity. The natural gas combined cycle generation units approach 60% efficiency, compared to traditional boiler units which max out at 34% efficiency. According to the US Census Bureau, almost 70% of all new single family homes sold use natural gas as the primary source of heating fuel and approximately 30% use electricity as the primary source.
Quick Facts
• According to the American Petroleum Institute, improved technology has contributed to a 9 percent increase in U.S. natural gas production between 2007 and 2008.
• Natural gas provides nearly one-fourth of the nation’s energy demand.
• Over 90 percent of natural gas used in the United States is domestically produced.
Recent Events
August 2011
At Women In Government's Third Annual Energy Summit, natural gas was a featured topic. Recent innovations in hydraulic fracturing technology have potentially unlocked new supplies of natural gas. This session will provide an overview of the technology and discuss the potential of this source of energy. Rayola Dougher, the featured speaker, is a senior economic advisor in American Petroleum Institute’s (API) Media Relations Department. Her efforts focus on informing policymakers, the news media, and the public on energy market issues and trends. Ms. Dougher is the author or co-author of economic research studies covering a diverse range of topics including crude oil and petroleum product markets, gasoline taxes, energy conservation, and competition in retail markets. In addition to testifying before federal and state legislators, she has participated in numerous newspaper, radio, and television interviews on a wide range of issues affecting the oil industry, including crude oil and gasoline prices, industry taxes and earnings, exploration and production, and refining and marketing topics. She spoke to legislators about shale gas and fracking. For more information, please view her presentation here.
Sample Legislation
California Assembly Bill 1318 – Would enable the construction of a state of the art, natural gas plant in Riverside County, California.
Delaware Senate Bill 106 - Creates Energy Efficiency Resource Standards (EERS) and sets goals for consumption and peak demand for electricity and natural gas utilities. The goals are 15% electricity consumption savings and 10% natural gas consumption savings by 2015.
New York Assembly Bill 542 – Prohibits oil or natural gas drilling operations or pipelines on lands under waters of lakes Ontario and Erie.
Texas House Bill 1467 – Relates to the purchase or lease by state agencies of vehicles using alternative fuels, such as compressed natural gas.
Additional Resources
American Gas Association
Natural Gas.org
American Petroleum Institute
Energy Information Administration – Natural Gas
Department of Energy – Energy Efficiency and Renewable Energy – Natural Gas
