Natural gas is colorless, odorless fossil fuel gas that is prized for its cleanliness and its many uses – including energy. It is produced in much the same way as oil, and in fact is often produced in conjunction with oil.

Natural gas is a principal component of modern chemistry and, as such, plays a central role in our quality of life. It is an essential material in such products as propane, paints, fertilizer, plastics, antifreeze, dyes and medicines.

Courtesy USCG PA3 Donnie Brzuska

As one of the most versatile building blocks of our way of life, it is consumed by industry as both an energy source and a basic feedstock. Families and businesses depend on it for heating and cooling. It has increasingly been viewed as a dependable and clean transportation fuel, powering urban mass transportation systems reliably and safely. It also holds great promise as a reliable source of hydrogen. Few Americans go a day without its use in some form or fashion.

American Supplies

The most environmentally-friendly of the fossil fuels, natural gas provides 24 percent [i] of our total energy supply and approximately 21 percent [ii] of the fuel used to generate electricity.

Currently, US proven natural gas reserves are 238 trillion cubic feet[iii] , though experts believe North America is blessed with huge natural gas supply potential. In 2008, production of natural gas in the US was 20.6 trillion cubic feet (tcf) while demand was 23.2 tcf. [iv]

As demand for this energy source has been greater than domestic production, the US has been importing natural gas, principally from Canada via pipelines. We also import liquid natural gas (LNG) which is transported by ship from overseas. Importing LNG requires special port facilities that can receive the gas that has been condensed using extremely cold temperatures – lower than -260 degrees Fahrenheit.

Domestic production of natural gas is expected to increase by 12 percent by 2030, according to the US Energy Information Administration.[v]

[i] Energy Information Administration, Monthly Energy Review, May 2009, http://www.eia.doe.gov/emeu/mer/pdf/pages/sec1_7.pdf .

[ii] Energy Information Administration, Monthly Energy Review, May 2009, http://www.eia.doe.gov/emeu/mer/pdf/pages/sec7_5.pdf .

[iii] Energy Information Administration, International Energy Outlook 2009, http://www.eia.doe.gov/oiaf/ieo/pdf/0484(2009).pdf

[iv] Energy Information Administration, Monthly Energy Review, May 2009, http://www.eia.doe.gov/emeu/mer/pdf/pages/sec4_3.pdf .

[v] Energy Information Administration, Annual Energy Outlook 2009 revised, http://www.eia.doe.gov/oiaf/servicerpt/stimulus/pdf/stimulus.pdf .