U.S. Natural Gas Consumption at Record Levels During 2023: EIA

U.S. natural gas consumption reached a record high of 89.1 billion cubic feet per day (Bcf/d) during 2023, according to an April 23 report published by the U.S. Energy Information Administration. U.S. natural gas consumption has been on an upward trend since 2018 and has increased on average by around four percent annually. Monthly natural gas usage set consecutive records from March 2023 through to November 2023. The increase in U.S. natural gas consumption can be attributed to higher gas demand in the power sector, due to declining coal fired electric production capacity. U.S. coal assets are retiring as they become less efficient and expensive to run due to age and as coal-fired generators face higher competition from natural gas and renewables.

Natural gas usage peaks twice a year in the U.S., driven by the residential and commercial sectors during the winter and electric power sector during the summer. In winter, the most natural gas is consumed in January or February when demand for space heating increases. In summer, natural gas is used mostly in July or August to fulfil air-conditioning demand.

The largest monthly increase in natural gas usage was witnessed by the electric power sector during July and August, despite cooler than seasonal normal temperatures during those months, compared to 2022. Natural gas usage rose by six percent in July and August 2023, compared to the previous year, despite overall U.S. electricity growth being flat in July 2023 (412 billion kilowatthours) compared to the previous year and rising by just three percent in August 2023 (410 billion kilowatthours) compared to August 2022.

The highest monthly volume of natural gas used in the U.S. was in January 2023 at 106.6 Bcf/d, however usage was eight percent less than compared to January 2022. The decline in usage during January 2023 can be attributed to above seasonal normal temperatures reducing gas demand for heating in both the commercial and residential sectors.

U.S. natural gas consumption increased the most in the electric power sector during 2023.  In the power sector, gas consumption rose by seven percent or 2.2 Bcf/d from 33.2 Bcf/d in 2022 to a record high of 35.4 Bcf/d in 2023.