Natural gas production and end uses
Natural gas production rose by 15% from 2009 to 2013. More important than the growth is that shale gas (from fracking) is now the primary production source. Electric power generation is the primary consumer of natural gas. This directly impacts electricity rates. Production projections with only modest rises in demand will create more opportunities for natural gas export.
Published on: Mar 3, 2016
Transcripts - Natural gas production and end uses
Natural Gas Production
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Charlie Hewitt has more than 20 years of in-depth energy
experience having served in executive and managerial roles at
some of the largest retail energy providers in North America. His
expertise covers a wide range of retail energy disciplines including
pricing, contracting, risk management, and credit. He holds an
MBA from UT Arlington, MA and BS degrees in geology from UT
Austin, and was a TXU environmental research fellow.
U.S. Natural Gas Production
Domestic natural gas production rose by 15% from 2009 to 2013.
Natural Gas Production by Source
Production from shale gas wells dramatically increased between 2009 and
2013 due to advances in recovery technologies like hydraulic fracturing
(fracking). Shale gas is now the primary source of natural gas production.
Gas Wells Oil Wells Coalbed Wells Shale Gas Wells
Consumption by Consumer Segment
Natural gas is also used in a number of industrial manufacturing processes
such as heating and drying as well as a feedstock for pharmaceuticals and
fertilizer. Electric power generation is the primary consumer of natural gas.
Electricity rates, therefore, are highly correlated with natural gas prices.
Residential End-Use Consumption
Space heating varies greatly due to climate. The New York- New Jersey-
Pennsylvania region has the highest space heating usage (85,242 million Btu)
while the Texas-Oklahoma-Arkansas-Louisiana region uses the least amount
of natural gas for heating (33,891 million Btu).
Drying, 5% Fireplaces,
Commercial End-Use Consumption
Commercial natural gas end-uses are more diverse than those in the residential
sector. Natural gas may be used in commercial building combined heat and
power systems, in cooling systems, and as a fuel for onsite power generation.
Production: Historical and Projected
U.S. natural gas production increased by almost 4 trillion cubic feet per year between 2009 and
2013. Consumption is only expected to increase by 2.35 trillion cubic feet per year between
2010 and 2035. Advances in production outpacing increases in consumption will put
downward pressure on domestic prices and create additional opportunities for export.
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