Natural gas plays a crucial role in meeting global energy demands. It reduces greenhouse gas emissions by replacing more polluting fuels and supports low-carbon energy sources in power generation.
It reduces air pollution in heavy industries such as iron, steel, and cement production and quickly compensates renewables for solar or wind power supply dips. It also is a growing transportation fuel for heavy-duty trucks and shipping.
Economic Impact
Natural gas is an inexpensive alternative to more expensive fossil fuels. It is a highly versatile energy source that can be used in various applications. It is a primary component in electric power generation, providing cleaner, more affordable energy than coal and oil. It is also widely used as a cooking and heating fuel in residential settings. In addition, it is used to power commercial appliances like water heaters, air conditioners, and garage heaters.
Natural gas is changing the economic landscape because gas prices have fallen. The lower prices have improved consumer purchasing power and confidence, increased corporate profits, and improved cost-competitiveness for domestic manufacturers relative to international competitors.
It has also created jobs, with more than 11.3 million Americans employed in the oil and natural gas industry. These jobs aren’t limited to top-producing states but extend across all 50 states. The oil and natural gas industry generates nearly a trillion in economic impact.
So, what is natural gas? Natural gas is less environmentally harmful than other fossil fuels, which release greenhouse gases into the atmosphere during production and transportation. It removes only half as much carbon dioxide and 30 percent fewer pollutants than coal per unit of energy produced. Additionally, it has significantly fewer particulates than many other energy sources.
Energy Security
Natural gas provides cleaner energy than coal, producing less carbon dioxide when burned to produce electricity. It is also a flexible and affordable power source in a world transitioning to renewable energy. Utilities choose to replace coal with natural gas as prices increase and standards to limit harmful pollution from coal-fired plants come into effect.
However, a shift to clean energy must happen quickly and cannot be achieved solely with natural gas. In an increasingly interconnected world dependent on globally traded commodities, being completely “energy independent” is no longer feasible.
Energy security has multiple dimensions, including providing affordable energy, assuring reliable natural gas supplies, and maintaining robust trade. Most states have abundant natural gas resources that could help address all three challenges. Greater collaboration among stakeholders—including the industry, regulators, and consumers—could allow the region to develop gas infrastructure, reduce gas prices, and boost LNG exports. These measures would provide energy security, counter high gas prices, and replace high-emission forms of energy to advance decarbonization. But it will take more than collaboration to make this potential a reality. Ultimately, the best way to meet energy security challenges is by significantly increasing renewables and expanding energy efficiency in residential and commercial buildings.
Climate Change
Natural gas is a mixture of hydrocarbons, mainly methane (CH4). The odorless, colorless fuel is used to produce electricity and heat homes and businesses, but it also has several other uses. It is cleaner than gasoline because it produces significantly less carbon dioxide and other harmful pollutants when burned.
The fuel is extracted from underground by drilling wells, called “gas wells,” into rock formations. The drilled wells are then connected to networks of pipelines that transport the natural gas to consumers. The gas network comprises more than 210 systems that transport gas to over 400 stations and 11,000 locations nationwide.
Tight gas, a form of unconventional natural gas, is found in impermeable rock formations and requires expensive techniques to access. These include hydraulic fracturing, or “fracking,” and horizontal drilling. The gas is typically extracted from shale formations through these methods, although it is also removed from conventional deposits such as coal beds.
Energy demand for fossil fuels will continue to decline as the world shifts to lower-carbon resources and increases efficiency. Natural gas’ role in this transition will depend on the speed of renewables rollouts and efforts to improve building and industrial energy use. It has pushed up gas prices and raised concerns about supplies, and this volatility could slow progress toward meeting the world’s decarbonization goals.
Environmental Impact
Natural gas is extracted from underground reservoirs of sedimentary rock in basins around the globe. It is typically pumped to market via pipelines extending from the source to distribution terminals along coastlines, reaching the pipeline system. Natural gas can be cooled and compressed into “liquefied natural gas” (LNG) in countries where pipelines are unavailable or for overseas transport.
Burning coal produces more carbon dioxide and air pollutants than burning natural gas, and the recent shift to natural gas has significantly reduced near-term greenhouse gas emissions from the electric power sector. Natural gas can also reduce other types of pollution, including airborne particulate matter, considerably contributing to respiratory ailments and premature death.
Leaks from wells, processing plants, and pipelines emit methane — the main component of natural gas — into the atmosphere. This has a short-term impact as a greenhouse gas, but its effects are mitigated by the fact that methane remains in the atmosphere for less time than carbon dioxide. In addition, methane is routinely released through venting and flaring activities in oil and natural gas operations for safety, economic, or operational reasons.
