Natural Gas

Technology

A fossil fuel identified as the cheapest, fastest, and most reliable source for rapidly scaling up US electricity production to power the AI boom in the near term.


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7/26/2025, 7:22:22 AM

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7/26/2025, 7:27:04 AM

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7/26/2025, 7:24:54 AM

Summary

Natural gas is a naturally occurring gaseous hydrocarbon, primarily composed of methane, formed over millions of years from organic matter. It serves as a crucial fossil fuel for heating, cooking, and electricity generation, emitting fewer pollutants and less carbon dioxide than other fossil fuels when burned, though fugitive emissions are a concern. In the context of a potential US economic strategy focused on AI development, natural gas is identified as a key near-term energy source to meet the escalating demands of AI data centers and advanced technologies, supporting a massive scale-up of energy production.

Referenced in 1 Document
Research Data
Extracted Attributes
  • Main Uses

    Heating, cooking, electricity generation; rarely used as a chemical feedstock

  • Appearance

    Colorless and odorless (commercial odorizers like Methanethiol are added for leak detection)

  • Occurrence

    Found in underground geological formations, often alongside other fossil fuels like coal and oil

  • Processing

    Almost always processed to remove impurities such as water, hydrogen sulfide, carbon dioxide, water vapor, and sometimes helium and nitrogen before use

  • Energy Storage

    Stores solar energy as chemical energy within its molecules

  • Major Producers

    United States, Russia

  • Formation Process

    Fossil fuel formed over millions of years from the thermal decomposition of organic matter (primarily marine microorganisms) under oxygen-free conditions, intense heat, and pressure underground

  • Measurement Units

    Standard cubic meters or standard cubic feet

  • Primary Composition

    Methane (95%), with smaller amounts of higher alkanes and trace gases like carbon dioxide, nitrogen, hydrogen sulfide, and helium

  • Environmental Concern

    Gas venting and unintended fugitive emissions throughout the supply chain can result in a similar overall carbon footprint to other fossil fuels

  • Historical Price High

    15.78 USD/MMBtu (December 2005)

  • Byproducts of Processing

    Ethane, propane, butanes, pentanes, and higher molecular weight hydrocarbons; pure sulfur (from H2S)

  • Density (relative to air)

    Ranges from 0.58 to 0.79 (generally less than 0.64)

  • Largest LNG Supplier Status

    United States became the world's largest LNG supplier in 2023

  • US Energy Consumption Share

    Accounts for almost a quarter of United States energy consumption

  • Projected Henry Hub Price (2025)

    4.00 USD/MMBtu

  • Projected Henry Hub Price (2026)

    4.90 USD/MMBtu

  • Environmental Impact (Combustion)

    Emits fewer toxic air pollutants, less carbon dioxide, and almost no particulate matter compared to other fossil fuels

Timeline
  • Natural gas reached an all-time high price of 15.78 USD/MMBtu. (Source: Web Search)

    2005-12-01

  • Natural gas prices began to soar, continuing into the third quarter of 2022, driven by rising post-COVID-19 demand and concerns about Russia's supply after its invasion of Ukraine. (Source: Web Search)

    2020-07-01

  • Europe's natural gas price reached its highest for 2021 at €187/MWh. (Source: Web Search)

    2021-12-21

  • The United States overtook Australia and Qatar to become the world's largest LNG supplier. (Source: Web Search)

    2023-01-01

  • Global natural gas consumption reached an all-time high, with demand growing by 2.8% year-over-year (preliminary projections). (Source: Web Search)

    2024-01-01

  • The first two months of 2025 saw a noticeable increase in natural gas prices. (Source: Web Search)

    2025-01-01

  • Preliminary data indicated U.S. dry gas production increased 0.1% week-over-week and 3.2% year-over-year for the week ending this date. (Source: Web Search)

    2025-06-20

  • Preliminary data showed total U.S. natural gas demand, including exports, rose 0.6% week-over-week and 1.7% year-over-year for the week ending this date. (Source: Web Search)

    2025-06-20

Natural gas

Natural gas (also fossil gas, methane gas, and gas) is a naturally occurring compound of gaseous hydrocarbons, primarily methane (95%), small amounts of higher alkanes, and traces of carbon dioxide and nitrogen, hydrogen sulfide and helium. Methane is a colorless and odorless gas, and, after carbon dioxide, is the second-greatest greenhouse gas that contributes to global climate change. Because natural gas is odorless, a commercial odorizer, such as Methanethiol (mercaptan brand), that smells of hydrogen sulfide (rotten eggs) is added to the gas for the ready detection of gas leaks. Natural gas is a fossil fuel that is formed when layers of organic matter (primarily marine microorganisms) are thermally decomposed under oxygen-free conditions, subjected to intense heat and pressure underground over millions of years. The energy that the decayed organisms originally obtained from the sun via photosynthesis is stored as chemical energy within the molecules of methane and other hydrocarbons. Natural gas can be burned for heating, cooking, and electricity generation. Consisting mainly of methane, natural gas is rarely used as a chemical feedstock. The extraction and consumption of natural gas is a major industry. When burned for heat or electricity, natural gas emits fewer toxic air pollutants, less carbon dioxide, and almost no particulate matter compared to other fossil fuels. However, gas venting and unintended fugitive emissions throughout the supply chain can result in natural gas having a similar carbon footprint to other fossil fuels overall. Natural gas can be found in underground geological formations, often alongside other fossil fuels like coal and oil (petroleum). Most natural gas has been created through either biogenic or thermogenic processes. Thermogenic gas takes a much longer period of time to form and is created when organic matter is heated and compressed deep underground. Methanogenic organisms produce methane from a variety of sources, principally carbon dioxide. During petroleum production, natural gas is sometimes flared rather than being collected and used. Before natural gas can be burned as a fuel or used in manufacturing processes, it almost always has to be processed to remove impurities such as water. The byproducts of this processing include ethane, propane, butanes, pentanes, and higher molecular weight hydrocarbons. Hydrogen sulfide (which may be converted into pure sulfur), carbon dioxide, water vapor, and sometimes helium and nitrogen must also be removed. Natural gas is sometimes informally referred to simply as "gas", especially when it is being compared to other energy sources, such as oil, coal or renewables. However, it is not to be confused with gasoline, which is also shortened in colloquial usage to "gas", especially in North America. Natural gas is measured in standard cubic meters or standard cubic feet. The density compared to air ranges from 0.58 (16.8 g/mole, 0.71 kg per standard cubic meter) to as high as 0.79 (22.9 g/mole, 0.97 kg per scm), but generally less than 0.64 (18.5 g/mole, 0.78 kg per scm). For comparison, pure methane (16.0425 g/mole) has a density 0.5539 times that of air (0.678 kg per standard cubic meter).

Web Search Results
  • Natural gas - Price - Chart - Historical Data - News

    Natural gas fell to 4.01 USD/MMBtu on June 20, 2025, down 1.73% from the previous day. Over the past month, Natural gas's price has risen 19.19%, and is up 41.55% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Historically, Natural gas reached an all time high of 15.78 in December of 2005. Natural gas - data, forecasts, historical chart - was last updated on June 20 of 2025. [...] . Natural gas accounts for almost a quarter of United States energy consumption. The United States is the biggest natural gas producer followed by Russia. In 2023, the US overtook Australia and Qatar to become the world's largest LNG supplier, driven by rising global prices and increased demand for exports, partly due to supply disruptions and sanctions related to Russia's 2022 actions. The Natural gas market prices displayed in Trading Economics are based on over-the-counter (OTC) and contract [...] | | Actual | Chg | %Chg | | | --- | --- | --- | --- | --- | | US500 | 6054.90 | 74 | 1.24% | | | US30 | 42663 | 491 | 1.17% | | | US100 | 22027 | 307 | 1.41% | | | JP225 | 38565 | 77 | 0.20% | | | GB100 | 8821 | 29 | 0.33% | | | DE40 | 23403 | 345 | 1.50% | | | FR40 | 7625 | 71 | 0.94% | | | IT40 | 39281 | 339 | 0.87% | | | ES35 | 13902 | 157 | 1.14% | | | ASX200 | 8487 | 37 | -0.43% | | | SHANGHAI | 3360 | 2 | -0.07% | | | SENSEX | 82408 | 1,046 | 1.29% | |

  • Natural Gas Forecast & Price Predictions 2025, 2026, 2030 - NAGA

    Cristian Cochintu Copyright © 2025 – All rights reserved. NAGA is a trademark of The NAGA Group AG, a German based FinTech company publicly listed on the Frankfurt Stock Exchange | WKN: A161NR | ISIN: DE000A161NR7. The website is operated by NAGA Capital Ltd which is authorised and regulated by the Financial Services Authority Seychelles (FSA) under licence No. SD026. The registered address of Suite 3, Jivan’s Complex, Global Village, Mont Fleuri, Mahe, Seychelles. Tel: +248 4373121 [...] Natural gas prices soared from the second half of 2020 to the third quarter of 2022, owing to rising post-COVID-19 demand and concerns about Russia’s supply after it invaded Ukraine in February 2022. In the fourth quarter of 2021, uncertainties regarding Russia’s supply bolstered the price rally, according to Cedigaz. Europe’s natural gas price reached its highest price for 2021 at €187/MWh on 21 December, before retreating to €70 on the last day of 2021. [...] The first two months of 2025 saw a noticeable increase in natural gas prices, following a period of volatility in 2024. According to preliminary projections, global natural gas consumption reached an all-time high in 2024, with demand growing by 2.8% year-over-year (y-o-y), surpassing the 2% average growth rate observed between 2010 and 2020. Despite this robust expansion, the market remains fragile. Global LNG output growth has been below average, and price fluctuations continue to be fueled

  • Short-Term Energy Outlook: Natural Gas - EIA

    combined will increase by nearly 4 Bcf/d this year, while U.S. dry natural gas production grows by less than 3 Bcf/d. Although natural gas inventories have recently moved above the five-year average, we expect that as demand persistently outpaces supply through much of this year, inventories will fall back below the five-year average by October, putting upward pressure on prices. [...] | Natural Gas | | --- | | | 2023 | 2024 | 2025 projected | 2026 projected | | Note: Values in this table are rounded and may not match values in other tables in this report. | | Natural gas price at Henry Hub (dollars per million Btu) | 2.50 | 2.20 | 4.00 | 4.90 | | U.S. dry natural gas production (billion cubic feet per day) | 104 | 103 | 106 | 106 | | U.S. natural gas consumption (billion cubic feet per day) | 89 | 90 | 91 | 91 | [...] year. We expect the price of natural gas delivered to the power sector to average about $3.84/MMBtu from June through September, $1.39/MMBtu more than that period in 2024. At the same time, the price generators pay for coal will be almost unchanged.

  • Natural Gas Market Indicators - April 10, 2025

    Privacy Policy Terms and Conditions []( Menu ---- Natural Gas Natural Gas AFFORDABLE ENVIRONMENT RELIABLE SAFETY SECURITY Newsroom Newsroom TRUE BLUE BLOG NEWS RELEASES AMERICAN GAS MAGAZINE Research & Policy Research & Policy FEDERAL STATE REGULATORY ANSI STANDARDS DATA & STATISTICS RESOURCE LIBRARY Get Involved About AGA Events Member Center Member Login [...] According to Baker Hughes, the total U.S. natural gas rig count decreased from 103 to 96 for the week ending April 4. Compared to the same week last year, the number of natural gas rigs is down by 14 rigs, or 12.7 percent. Total rig count stands at 590, including 489 oil rigs and 5 miscellaneous rigs, down 4.8 percent from last year. By state, the only week-over-week changes to total rig count occurred in Pennsylvania and Texas, with a 1 rig increase and 3 rig decrease, respectively. [...] In issuing and making this publication available, AGA is not undertaking to render professional or other services for or on behalf of any person or entity. Nor is AGA undertaking to perform any duty owed by any person or entity to someone else. Anyone using this document should rely on his or her own independent judgment or, as appropriate, seek the advice of a competent professional in determining the exercise of reasonable care in any given circumstances. The statements in this publication

  • Natural Gas Market Indicators - June 20, 2025

    Preliminary data from S&P Global suggests U.S. dry gas production increased 0.1 percent week-over-week and 3.2 percent year-over-year for the week ending June 20. Despite softening production since a new record high was set on May 16, 2025, year-to-date natural gas production through June 20 remains 2.7 percent higher than over the comparable period in 2024. Image 2 Regionally for the week ending June 20: [...] Natural Gas AFFORDABLE ENVIRONMENT RELIABLE SAFETY SECURITY Newsroom Newsroom TRUE BLUE BLOG NEWS RELEASES AMERICAN GAS MAGAZINE Research & Policy Research & Policy FEDERAL STATE REGULATORY ANSI STANDARDS DATA & STATISTICS RESOURCE LIBRARY Get Involved About AGA Events Member Center Member Login []( []( []( []( Search ------ Search [...] Total U.S. natural gas demand, including exports, rose 0.6 percent week-over-week and 1.7 percent year-over-year for the week ending June 20, according to preliminary data from S&P Global. Domestic consumption rose 1.1 percent week-over-week, driven by a 4.9 percent increase in the electric power sector. By comparison, residential and commercial sector consumption fell 10.5 percent week-over-week and industrial sector consumption softened 0.7 percent . Year-over-year, domestic consumption rose

Location Data

Natural Gas, Castle Pines, Douglas County, Colorado, United States

industrial

Coordinates: 39.4647078, -104.8721207

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