popular articles

The demand for natural gas in the United States reaches a new peak in 2024, despite decarbonization ambitions

Natural gas consumption in the United States increased by nearly 5% over the first nine months of 2024, despite federal initiatives to promote renewable energy, reinforcing the country's key role in the global energy sector.

Please share:

The continued growth in demand for natural gas in the United States in 2024 poses a strategic dilemma for the American administration. Although the Biden administration has launched numerous initiatives to promote renewable energy, electricity production from natural gas continues to grow. Over the first nine months of the year, American electricity producers recorded a peak production of 55.6 million MWh, an increase of nearly 5% compared to 2023.

This phenomenon is explained by the importance of natural gas in the American energy network. The PJM (Pennsylvania, New Jersey, Midwest) and ISO Midcontinent networks, covering much of Arkansas and the Northern States, as well as the ERCOT network in Texas, are the largest contributors to this increase, each accounting for more than 10% of national production. In contrast, the SERC network, covering the Carolinas and Georgia, has reduced its gas consumption by 2.5%, offsetting it with an increase in coal production.

A contrasting dynamic

This dynamic illustrates a marked contrast between climate ambitions and operational reality in the United States. Despite international pressure and energy transition commitments, natural gas production continues to grow. At the same time, gas companies continue to benefit from favorable conditions thanks to growing demand in Asia and Europe, exacerbated by the European energy crisis linked to the invasion of Ukraine.

On the international front, Mexico, Qatar, and Thailand show similar growth, but in absolute terms, the United States’ share remains significantly predominant. The global natural gas market could thus become increasingly dominated by American policy, influencing global prices and increasing tensions with energy transition advocates.

Strategic perspectives

The American context remains marked by a contradiction between decarbonization ambitions and the reality of its energy production. The International Energy Agency (IEA) estimates that the United States produces about 30% of the world’s electricity from gas, placing the country well above 2023 levels. This paradox is even more pronounced given the Biden administration’s goals to drastically reduce greenhouse gas emissions while ensuring national energy security.

For companies in the sector, this situation translates into a strategic opportunity. Giant ExxonMobil recently announced an expansion of its production capacity in the Permian Basin, estimating that demand will remain strong until 2030. At the same time, gas transportation companies like Kinder Morgan, with its pipelines covering over 80,000 km, anticipate an increase in transit capacity to Asian markets.

Impact on international markets

The continued growth in natural gas production by the United States could reshape the structure of global prices and intensify geopolitical tensions, particularly with Russia and Qatar, two other major players in the sector. Moreover, this dynamic could put additional pressure on U.S. climate policies, which are already struggling to balance energy stability and environmental goals.

In this context, the short-term outlook suggests a further increase in U.S. dependence on natural gas. The only way to reduce this dependency is through a major acceleration in investments in renewable energy and large-scale storage, as well as the modernization of national energy infrastructures.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Italian company Eni has initiated a major engineering, procurement, construction and installation (EPCI) tender for its $17.49 billion Kutei North Hub gas project offshore Indonesia.
Bulgaria will begin expanding its gas network in the coming weeks, a cornerstone of the "The Vertical" project aimed at strengthening regional energy security following the halt of Russian transit through Ukraine.
Bulgaria will begin expanding its gas network in the coming weeks, a cornerstone of the "The Vertical" project aimed at strengthening regional energy security following the halt of Russian transit through Ukraine.
TAQA will lead the construction and operation of a 1 GW gas-fired power plant in Al Dhafra as part of a strategic partnership with EWEC, supporting a total energy infrastructure investment of AED36bn in Abu Dhabi.
TAQA will lead the construction and operation of a 1 GW gas-fired power plant in Al Dhafra as part of a strategic partnership with EWEC, supporting a total energy infrastructure investment of AED36bn in Abu Dhabi.
The bp Trinidad and Tobago joint venture has launched production at the offshore Cypre field, marking bp’s second major start-up in 2025 and strengthening its shallow-water footprint in the region.
The bp Trinidad and Tobago joint venture has launched production at the offshore Cypre field, marking bp’s second major start-up in 2025 and strengthening its shallow-water footprint in the region.
Shell has finalised the acquisition of Pavilion Energy in Singapore, integrating a portfolio of 6.5 mtpa LNG contracts, regasification capacity, and bunkering activities.
The potential lifting of U.S. sanctions on the Arctic LNG 2 project paves the way for a rapid resumption of Russian liquefied natural gas exports, significantly impacting global markets from the third quarter of 2025.
The potential lifting of U.S. sanctions on the Arctic LNG 2 project paves the way for a rapid resumption of Russian liquefied natural gas exports, significantly impacting global markets from the third quarter of 2025.
Prairie Provident Resources closed 2024 with a reorganisation of its assets and a strategic focus on the Basal Quartz formation, backed by capital raises and revised reserve estimates.
Prairie Provident Resources closed 2024 with a reorganisation of its assets and a strategic focus on the Basal Quartz formation, backed by capital raises and revised reserve estimates.
The Republic of Congo enhances its gas capabilities with the floating platform Nguya, which will add 2.4 million annual tonnes of liquefied natural gas (LNG), solidifying its position in the global market starting in 2025.
The Republic of Congo enhances its gas capabilities with the floating platform Nguya, which will add 2.4 million annual tonnes of liquefied natural gas (LNG), solidifying its position in the global market starting in 2025.
TotalEnergies welcomed the launch of a criminal investigation in Mozambique into allegations of crimes committed by security forces near its suspended gas project in Cabo Delgado province.
Baker Hughes will provide integrated coiled-tubing drilling services to Dubai Petroleum Establishment as part of the Margham gas storage project, reinforcing its role in the emirate’s energy security.
Baker Hughes will provide integrated coiled-tubing drilling services to Dubai Petroleum Establishment as part of the Margham gas storage project, reinforcing its role in the emirate’s energy security.
Algeria announces an ambitious goal to increase its annual natural gas production to 200 billion cubic meters within five years, supported by significant investments and strategic infrastructure projects aimed at the international market.
Algeria announces an ambitious goal to increase its annual natural gas production to 200 billion cubic meters within five years, supported by significant investments and strategic infrastructure projects aimed at the international market.
Europe is considering various energy strategies up to 2050, revealing highly variable costs and an uncertain future for natural gas demand amid political pressure to achieve carbon neutrality at lower costs.
Europe is considering various energy strategies up to 2050, revealing highly variable costs and an uncertain future for natural gas demand amid political pressure to achieve carbon neutrality at lower costs.
The global liquefied natural gas engine market is expected to double by 2033, fuelled by energy diversification policies, growing refuelling infrastructure and demand for cost-effective transport solutions.
The $4.7bn financing granted by the US Exim Bank to the Mozambique LNG project reignites tensions in the United States over foreign energy policy and national interests.
The $4.7bn financing granted by the US Exim Bank to the Mozambique LNG project reignites tensions in the United States over foreign energy policy and national interests.
A study by Wood Mackenzie concludes that liquefied natural gas exported from the United States to Europe generates on average half the emissions of imported coal, when considering the full lifecycle.
A study by Wood Mackenzie concludes that liquefied natural gas exported from the United States to Europe generates on average half the emissions of imported coal, when considering the full lifecycle.
Slovak Prime Minister Robert Fico acknowledged on 20 March significant technical difficulties obstructing a proposed gas swap deal with Azerbaijan, while reaffirming the urgency of restoring Russian gas transit through Ukraine.
Slovak Prime Minister Robert Fico acknowledged on 20 March significant technical difficulties obstructing a proposed gas swap deal with Azerbaijan, while reaffirming the urgency of restoring Russian gas transit through Ukraine.
The Canadian government is financially backing the Cedar LNG project, a gas infrastructure led by the Haisla Nation and Pembina, with an investment of up to $200mn.
In 2025, Europe faces gas reserves well below usual levels, leading to rising prices and increased pressure on industrial competitiveness amid geopolitical and climatic tensions.
In 2025, Europe faces gas reserves well below usual levels, leading to rising prices and increased pressure on industrial competitiveness amid geopolitical and climatic tensions.
Alpha Generation, LLC plans to add 450 MW of power generation capacity across four existing sites in Maryland, New Jersey, and Ohio. This initiative aims to meet the growing energy demand under PJM’s Reliability Resource Initiative.
Alpha Generation, LLC plans to add 450 MW of power generation capacity across four existing sites in Maryland, New Jersey, and Ohio. This initiative aims to meet the growing energy demand under PJM’s Reliability Resource Initiative.
Equinor has begun gas production at Halten East, a NOK 9 billion project in the Norwegian Sea, two years after receiving approval from Norwegian authorities.
Equinor has begun gas production at Halten East, a NOK 9 billion project in the Norwegian Sea, two years after receiving approval from Norwegian authorities.
BP has confirmed the cessation of a gas leak at the offshore Grand Tortue Ahmeyim field, located between Senegal and Mauritania. The incident, identified on 19 February at one of the site’s wells, required technical interventions to restore the integrity of the installations.
The United States reactivates a major loan for TotalEnergies' Mozambique LNG project, stalled since 2021 due to a jihadist attack. The funding should enable a market-anticipated restart by 2030.
The United States reactivates a major loan for TotalEnergies' Mozambique LNG project, stalled since 2021 due to a jihadist attack. The funding should enable a market-anticipated restart by 2030.
ExxonMobil has signed a 20-year contract with ARC Resources for LNG supply from the Cedar LNG project, linked to JKM. The deal marks a significant step in global LNG pricing.
ExxonMobil has signed a 20-year contract with ARC Resources for LNG supply from the Cedar LNG project, linked to JKM. The deal marks a significant step in global LNG pricing.
Facing a drop in domestic production, Egypt plans to lease a floating natural gas liquefaction unit in Germany to secure its energy supply.
Facing a drop in domestic production, Egypt plans to lease a floating natural gas liquefaction unit in Germany to secure its energy supply.

Advertising