Natural Gas Consumption Patterns

Natural gas, one of the cleanest, safest, and most useful of all energy sources, is a mixture of hydrocarbon gases that occurs with petroleum deposits that is used as a fuel and in the manufacture of organic compounds.

Between 1997 and 2011, total natural gas consumption in the United States rose 7%. This is modest growth in and of itself but it masks bigger changes in individual sectors. Electric power was the second lowest user of natural gas in 1997 but is now the largest user. This sector also shows the greatest sensitivity to price change than any other sector. As of 2009, natural gas consumption for power surpassed the consumption in the industrial sector. With coal prices rising and natural gas prices declining, dispatching natural gas generators in some parts of the country has become increasingly competitive with operating coal generators. The competition between natural gas and coal fired generators first appeared in the Southeast where it was more expensive to use coal-fired generators due to the higher cost of transporting the coal over long distances.

The industrial sector uses natural gas for processing heat, steam generation, onsite electricity generation, space heating and petrochemical processing. In 1997, the industrial sector was the largest user of natural gas. This sector’s use has steadily declined from 1997 until 2010 where there was an upturn in consumption has occurred between 2010–2011. The reason for this upturn in natural gas usage is due to a severe downturn in the price from 2008-2009. Since 2009 the price has remained steady.

The residential and commercial sectors primarily use natural gas for space heating, water heating and cooking. In these sectors, the most influential short-term factor is weather. The use of