How Does Natural Gas Benefit Us?

Natural Gas Benefits

Clean, affordable, and abundant, natural gas consumption is projected to rise by approximately 60% globally by 2040, driven by an increasing demand for reliable energy sources, the growth of industries like manufacturing and artificial intelligence and global economic growth.

It’s not just a fuel—it’s a force behind:

• Lower emissions

• American energy and national security

• A reliable grid and stable energy costs

• Improved standards of living

At the heart of this progress is the Permian Basin—one of the most productive energy regions in the world. Spanning across West Texas and Southeastern New Mexico, the Permian is rich in natural gas resources, powering local economies, and strengthening America’s energy independence and global competitiveness. As demand for low-cost, lower-emission energy continues to rise, the Permian Basin is more than prepared to lead the way.

Cleaner-Burning Energy Resource

Thanks to the shale revolution, the U.S. has rapidly shifted toward natural gas in the electric power sector, displacing higher-emission fuels like coal and reducing emissions in the sector by 35% over the past two decades. Growing scientific consensus affirms that natural gas isn't just a bridge fuel—it's a powerful tool in the global effort to combat climate change.

The United States has demonstrated significant progress in reducing natural gas flaring compared to the other major oil and gas producing nations.

The Permian is not only supplying vast amounts of affordable and reliable energy, it is also demonstrating leadership in reducing emissions.

Data shows that flaring intensity in the Permian in 2023 was 65 percent lower than in 2015 – when flaring reached a decade high.  This progress reflects operators’ commitment to responsible practices while demonstrating that energy production can successfully align with environmental stewardship.

Grid Reliability

Critical for meeting peak demand, maintaining reliability during extreme weather, and filling gaps created by intermittent renewable energy sources, natural gas is a critical fuel for power grids across America, supplying 40% of all power generation.

With a rapid rise in energy demand from the expansion of AI and data centers, natural gas is becoming even more critical to the power grid. Tech companies are scrambling to source affordable, reliable, dispatchable and low emission fuels, leading them to invest heavily in natural gas.

U.S. data centers are also being strategically placed near natural gas basins, making Texas one of the most attractive U.S. states for this growing industry, thanks to its welcoming business environment and flourishing natural gas production in the Permian Basin.

Global Energy Security

The export of liquefied natural gas (LNG) and the expansive infrastructure supporting it has delivered far-reaching economic gains for the United States and its strategic allies, underscoring the importance of investments in domestic infrastructure growth.

As the world’s top LNG exporter, the U.S. heavily relies on Texas’ energy supply chain to combat unstable energy regimes abroad. The delivery of Texas LNG to U.S. allies has strengthened global energy resilience, especially as supply chains in Europe and the Middle East face challenges and geopolitical tensions.

In addition to job creation and income, the LNG sector makes a powerful economic impact—contributing $43.8 billion to the U.S. GDP and generating $11 billion in taxes and royalties at the local, state, and federal levels. Texas plays a leading role in these outcomes. The same report suggests that with favorable conditions, the economic benefits of LNG exports—including jobs, wages, GDP impact, and tax revenues—could increase fourfold by 2044.

Cost Effective and Essential for Everyday Needs

Based on a recent analysis by the American Gas Association, households using natural gas for heating, cooking and drying clothes save an average of $1,068 per year compared to homes using electricity for those activities. Natural gas is expected to remain significantly more affordable than electricity, costing between one-half to one-third as much through 2050.

Natural gas is also an essential part of the U.S. industrial sector. In addition to powering several manufacturing processes, it serves as a feedstock for producing everyday materials. Natural gas is used in the production of plastics and chemicals, making it critical for countless daily products, from medical equipment and clothing, to packaging and electronics.

Natural Gas Benefits for the Lone Star State

• The state of Texas set new natural gas production records in 2023, supplying 27 percent of natural gas for the United States. Even with increased production, emission reductions continued. Flaring intensity in 2023 decreased 47 percent from 2018 levels, even as Texas’ production increased nearly 25 percent.

• The LNG industry continues to support thousands of local jobs each year and generates billions in state tax revenue. Ongoing and upcoming investments in LNG export terminals, pipelines, and related infrastructure are driving significant development across Texas. This growth is especially evident in port cities like Brownsville and Corpus Christi, where investment continues to not only strengthens LNG infrastructure, but boosts local economies and enhancing the state’s overall economic vitality.

• Natural gas plays a critical role in maintaining the reliability of the Texas energy grid—providing around 45% of electricity generation—ensuring dispatchable power when renewables fall short, as demonstrated during the April 2024 solar eclipse when it offset reduced solar output.