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Natural Gas

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Fast Facts About
Natural Gas

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Principal Energy Uses: Electricity, Heat
Form of Energy: Chemical

Natural gas (NG) is the most versatile and fastest-growing fossil fuel—used in all areas of the economy (industrial, residential, commercial, and transportation). It is a depletable, non-renewable resource composed primarily of methane gas (CH4), with smaller amounts of natural gas liquids, carbon dioxide (CO2), and water vapor. While natural gas is the cleanest-burning fossil fuel, it still produces CO2 when combusted. And because natural gas is primarily methane, it is itself a very potent greenhouse gas when it is emitted to the atmosphere uncombusted.

Diagram showing the natural gas system from upstream, which includes drilling, producing, and processing natural gas, to midstream, which is transporting natural gas via pipelines or as liquid natural gas by ship, to downstream, which includes natural gas combustion and delivering electricity or heat to customers for end use.

Methane can escape or leak into the atmosphere during the production, processing, storage, transmission, distribution, and use of natural gas, and during the production, refinement, transportation, and storage of crude oil. Methane leakage poses a significant challenge for the natural gas energy system and for climate change. Much of this leakage can be avoided with good policy and oversight. Recent advances in satellites, flyovers, drones, and sensors are allowing better accountability and information.

Note: The data in these Fast Facts are for commercial natural gas. Landfill natural gas and biogas (methane from biological sources) are addressed on the Biomass page.


Significance

Energy Mix

25% of world 🌎 (#3 resource)
36% of U.S. 🇺🇸 (#2 resource)

Electricity Generation

22% of world 🌎 (#2 resource)
43% of U.S. 🇺🇸 (#1 resource)

Global NG Uses

Electricity: 40%
Heat (industrial): 25%*
Heat (buildings): 21%**
Oil and Natural Gas Production: 10%
Transportation: 4%***

Change in Global Consumption

Increase:
⬆ 6%
(2019-2024)

*Includes chemical feedstock application (fertilizer, methanol)
**For example, space and water heating, cooking
***Mostly natural gas used in pipelines to move natural gas


GHG Emissions

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Stacked column percentage chart showing the share of energy GHG emissions by source.

Chart figures include fugitive emissions (i.e., methane leakage).

Percentages may not total to 100 due to rounding of individual categories.

22% of world 🌎
38% of U.S. 🇺🇸
energy GHG emissions are from natural gas
(includes methane leakage)

Energy GHG emissions are ~75% of global GHG emissions.

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Pie chart showing 2022 U.S. methane emissions by source
*Livestock category includes enteric fermentation and manure management
**Flooded land category example: decomposition of organic matter in natural wetlands


The Challenge of Natural Gas (Methane) Leakage

Global Warming Potential of Methane

80x more potent than CO2 over 20 years

27-30x over 100 years

Methane only lasts about 12 years in the atmosphere but is very potent.

Methane Leakage from Natural Gas and Petroleum Systems

4%
of US GHG emissions

% of Natural Gas that is Leaked

The EPA cites US leakage at ~1.5% (could be higher). In key production regions (Permian) it may be as high as 9%.

Recent studies have shown that as little as 0.2% to 3% leakage puts natural gas on par with coal for climate change impact.

Controlling methane leakage is key for reducing GHG emissions. It is also beneficial to the oil and gas industry, because it increases their supply of natural gas to sell.


World

Largest Proved Reserves

Russia 20% 🇷🇺
of global proved reserves

Largest Producer

U.S. 26% 🇺🇸
of global production

Largest Consumer

U.S. 22% 🇺🇸
of global consumption


U.S.

Largest Proved Reserves

Texas 30%
of U.S. proved reserves

Largest Producer

Texas 27%
of U.S. production

Largest Consumer

Texas 15%
of U.S. consumption


Global Trade

Amount Traded

23%
of global production

59% as LNG*, 41% by pipeline

Largest Exporter

U.S. 23% 🇺🇸
of global exports

Largest LNG* Exporters

U.S. 21% 🇺🇸, Qatar 20% 🇶🇦, Australia 20% 🇦🇺

Largest Importer

Europe 30%
of global imports

Largest LNG* Importers

China 18% 🇨🇳, Japan 16% 🇯🇵

*LNG (liquified natural gas) – natural gas that has been cooled down to liquid form for ease and safety of storage and transport


Drivers

  • Abundant and growing availability: ongoing innovation in extraction drives down costs and increases available resources
  • Versatile: many uses, including many forms of heat (for buildings and industrial processes) and electricity generation
  • Feasible to transport via pipeline or LNG tankers
  • Relatively low private costs compared to other fossil fuels (but note that social and environmental costs are not factored into the price)
  • Flexible/dispatchable for electricity generation: easy to ramp up and down based on needs of the electricity grid; critical for scaling renewables
  • Potential “blue bridge to green future:" it's the lowest carbon fossil fuel and supports renewable energy integration
  • No solid waste; lower SO2 and NOX than coal
  • Methane and CO2 monitoring solutions and reduction technologies emerging rapidly

Barriers

  • Methane is a highly potent greenhouse gas; venting, leaking, and flaring need to be addressed or the future of natural gas is problematic
  • Resource not evenly distributed around the world, raising concerns around geopolitics of supply and demand, energy security
  • Lower energy density requires transportation infrastructure; pipeline and LNG gasification siting can be controversial
  • Natural gas infrastructure requires reclamation and remediation at end of life

Climate Impact: Medium to High

medium to high gradient
  • Lower CO2 emissions intensity than coal or oil when combusted
  • Methane leakage contributes to global warming, as methane is a potent greenhouse gas

Environmental Impact: Medium

medium on a scale from low to high
  • Extraction and pipelines disrupt natural habitats and pose risks to nearby human communities
  • Potential thermal pollution of water from power plants
  • Has very low emissions other than leakage, and it is enabling renewables and replacing coal

 

Updated February 2026

Our 10-Minute Take On
Natural Gas

If you're short on time, start by watching this video of key highlights from our lecture on Natural Gas.

Diana Gragg

Presented by: Diana Gragg, PhD; Core Lecturer, Civil and Environmental Engineering, Stanford University; Explore Energy Managing Director, Precourt Institute for Energy
 

Recorded: June 13, 2025  
Duration: 10 minutes

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Slides available upon request.

If you liked this video, watch the other 10-Minute Takes here!

Curated Videos and Readings on
Natural Gas

We assign videos and readings to our Stanford students as pre-work for each lecture to help contextualize the lecture content. We strongly encourage you to review the Essential videos and readings before watching our lecture on Natural Gas. Include selections from the Optional and Useful list based on your interests and available time.

Essential

Optional and Useful

  • Where Our Natural Gas Comes From. EIA. October 3, 2022. (1 page)
    An introduction to natural gas production and consumption in the United States, with focus on reports of current statistical activity.
  • The Business of Natural Gas. Southern Gas Association. April 22, 2013. (4 min)
    An overview of the commercial industry and fiscal aspects of natural gas exploration, drilling, production, treatment, shipping, and commercial consumption.

Our Lecture on
Natural Gas

This is our Stanford University Understand Energy course lecture on natural gas. We strongly encourage you to watch the full lecture to understand natural gas as an energy system and to be able to put this complex topic into context. For a complete learning experience, we also encourage you to watch / read the Essential videos and readings we assign to our students before watching the lecture.

Jane Woodward

Presented by: Jane Woodward, Adjunct Professor, Civil and Environmental Engineering, Stanford University; Founder and Managing Partner, WovenEarth Ventures; Founding Partner, MAP Energy
Recorded on: October 4, 2024   Duration: 59 minutes

Table of Contents

(Clicking on a timestamp will take you to YouTube.)
00:00 Introduction 
01:09 Significance and History 
23:44 What is Natural Gas? 
24:44 Where is the Natural Gas? 
28:49 How Does the Natural Gas System Work? 
47:11 Environmental Impacts 
56:29 Economics 
57:31 The Future of Natural Gas

Lecture slides available upon request.

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Test Your Knowledge

 Printable PDF: Questions, Answer Key 

Google Form

Frequently Asked Questions About
Natural Gas

Natural gas is composed primarily of methane gas (CH₄), with smaller amounts of natural gas liquids, carbon dioxide (CO₂), and water vapor.

Natural gas is a hydrocarbon formed from deeply-buried, dead organic material subject to high temperature and pressure for hundreds of millions of years.

Natural gas is the most versatile fossil fuel—used in all areas of the economy (industrial, residential, commercial, and transportation) for electricity generation, industrial heat and feedstock, heat in buildings (e.g., space and water heating, cooking), powering oil and natural gas production, and operating compressors in pipelines to transport natural gas.

While natural gas is the cleanest-burning fossil fuel, it still produces CO₂ when combusted. And because natural gas is primarily methane, it is itself a very potent greenhouse gas when it is emitted to the atmosphere uncombusted. Methane can escape or leak into the atmosphere during the production, processing, storage, transmission, distribution, and use of natural gas. 

Natural gas extraction and pipelines can also disrupt natural habitats and pose risks to nearby human communities.

Advantages of natural gas include:

  • Its abundance and versatility
  • Relatively low private costs compared to other fossil fuels (but social and environmental costs are not factored into the price)
  • Its flexibility for electricity generation: easy to ramp up and down based on the need of the electricity grid (critical for scaling renewables)
  • No solid waste from combustion and lower SO₂ and NOx than coal

Disadvantages of natural gas include:

  • Methane is a highly potent greenhouse gas; venting, leaking, and flaring need to be addressed
  • It’s not evenly distributed around the globe, raising geopolitical and energy security concerns
  • Its lower energy density requires transportation infrastructure; pipeline and LNG gasification siting can be controversial
  • Natural gas infrastructure requires reclamation and remediation at end of life

Additional Resources About
Natural Gas

Stanford University

Fast Facts Sources

More details available on request.
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