U.S. Natural Gas Consumption Hits Record Highs in Winter and Summer 2024: EIA

U.S. natural gas usage averaged a record 90.3 billion cubic feet per day (Bcf/d) during 2024, up one percent or 0.9 Bcf/d compared to 2023, according to a March 31 report published by the U.S. Energy Information Administration.

U.S. natural gas consumption achieved new winter and summer monthly highs in January and July 2024. During January, natural gas usage was higher by 12 percent or 12.5 Bcf/d compared to consumption in January 2023, and in July consumption rose three percent or 2.25 Bcf/d compared to July 2023.

U.S. natural gas consumption is driven by weather in both the summer and winter. During the winter, natural gas consumption peaks in January and February, when cold temperatures lead to high gas demand for household and commercial consumption.  During the summer period, electricity production rises during July and August to fulfill air conditioning demand, in turn this increases higher volumes of natural gas consumption, since gas is used as an input fuel in the electricity generation mix. Since 2014, the share of U.S. electricity generation from natural gas in the summer has increased every year except 2021, increasing from 29 percent in 2014 to 45 percent in 2024.

In recent years, the mix of U.S. electricity generation, particularly during summer, has shifted toward more renewables and natural gas, while coal usage has declined. Wind and solar are intermittent sources of generation; they only produce electricity when the wind is blowing or the sun is shining. As a result, natural gas is used more often as a balancing fuel in the summer.

Despite the record natural gas consumption in January, from February through April 2024, above seasonal normal temperatures led to lower volumes of natural gas usage compared with the same months during 2023. In each month from May through September 2024, natural gas consumption exceeded the previous year’s monthly records.

Low natural gas prices during 2024, incentivized natural gas usage in the electric power sector, especially compared with coal. Summer 2024 was the fourth-warmest on record in the U.S. Lower 48 states, leading to robust air conditioning demand and resulting in new daily records for electricity generation in July and August.