Natural Gas
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Before You Watch Our Lecture
Maximize your learning experience by reviewing these carefully curated videos and readings we assign to our students.
Our Lecture
Watch the Stanford course lecture.
Additional Resources
Find out where to explore further beyond our site.
Fast Facts About
Natural Gas
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.
Natural gas can escape or leak to the atmosphere as methane during the production, processing, storage, transmission, distribution, and use of natural gas, and 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
23% of world 🌎 (#3 resource)
35% of US 🇺🇸 (#2 resource)
Electricity Generation
23% of world 🌎 (#2 resource)
40% of US 🇺🇸 (#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:
⬆ 8%
(2017-2022)
*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
Natural Gas Systems Are a Significant Contributor to GHG Emissions
20% of world 🌎
35% of US 🇺🇸
GHG emissions from energy (includes methane leakage)
The Challenge of Natural Gas (Methane) Leakage
Global Warming Potential of Methane
80x more powerful 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
US 24% 🇺🇸
of global production
Largest Consumer
US 22% 🇺🇸
of global consumption
US
Largest Proved Reserves
Texas 24%
of US proved reserves
Largest Producer
Texas 25%
of US production
Largest Consumer
Texas 15%
of US consumption
Global Trade
Amount Traded
24%
of global production
56% as LNG*, 44% by pipeline
Largest Exporter
US 19% 🇺🇸
of global exports
Largest LNG* Exporters
Australia 21% 🇦🇺, Qatar 21% 🇶🇦, US 19% 🇺🇸
Largest Importer
Europe 33%
of global imports
Largest LNG* Importers
Japan 18% 🇯🇵, China 17% 🇨🇳
*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.” No solid waste, lower CO2, SO2 and NOX than coal; cleanest burning fossil fuel
- 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
- Lower CO2 emissions intensity than coal or oil when combusted
- Leakage of methane during extraction and transportation contributes to global warming, as methane is a potent greenhouse gas
Environmental Impact: Medium
- Extraction and transport by pipeline pose a risk to natural habitat, nearby human communities, and water quality
- Has very low emissions other than leakage, and it is enabling renewables and replacing coal
Before You Watch Our Lecture 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
- Natural Gas 101. Student Energy. June 30, 2015. (3 min)
An overview of how natural gas is formed, drilled, transported, stored, and used. - Why Natural Gas Has a Role in the Energy Transition. CNN Business. January 7, 2020. (2 min)
The role natural gas plays in the energy mix as countries transition toward increased reliance on renewable energy sources. - The Power of Natural Gas: Complementing Renewables for a Sustainable Energy Future. GE Power. January 24, 2020. (3 min)
An explanation of how natural gas power plants complement output from renewable energy sources to offset fluctuations in energy supply and demand. - Liquefied Natural Gas (LNG) 101. Student Energy. May 21, 2015. (2 min)
The basics of how natural gas can be liquified for storage and transport. - Methane: The Other Important Greenhouse Gas. Environmental Defense Fund. March 2, 2014. (2 min)
A video building awareness that methane emissions significantly damage the atmosphere, but that there are actions that can be taken to reduce leaks of this greenhouse gas. - Ilissa Ocko: The Fastest Way to Slow Climate Change Now. TED Countdown. January 15, 2022. (10 min)
A look at ways to contain methane emissions, presenting opportunity to immediately reduce the rate of climate change. - MethaneSAT: This New Satellite Will Fight Climate Change From Space. The Salata Institute at Harvard University. March 5, 2024. (3 min)
An overview of the purpose and significance of MethaneSat, the methane detection satellite launched in March 2024. - Methane Emissions from US Oil and Gas Operations Cost the Nation $10 Billion per Year. Stanford News. March 13, 2024.
A highlight of Stanford-led research that shows methane emissions from a large share of US oil and gas facilities are larger than previous estimates. - This Climate Gas is Scarier Than CO2. DW Planet A. March 25, 2022. (14 min)
Methane emission detection in the natural gas supply chain. - Why Germany Is Hooked on Russian Gas. Vox. May 18, 2022. (8 min)
History of Russian natural gas supply to Germany. Puts into context Ukraine's importance for Russias's natural gas supply to Europe.
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.
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 6, 2023 Duration: 60 minutes
Table of Contents
(Clicking on a timestamp will take you to YouTube.)
00:00 Introduction
03:44 Significance and History
24:30 What is Natural Gas?
26:19 Where is the Natural Gas?
29:05 How Does the Natural Gas System Work?
43:30 How Does Natural Gas Impact the Environment?
54:19 What Are the Economics of Natural Gas?
56:29 Where Are Things Going in the Future?
59:35 Summary/Wrap-Up
Lecture slides available upon request.
Additional Resources About
Natural Gas
Stanford University
- Natural Gas Initiative
- Energy Modeling Forum - See Projects section for natural gas market analyses
- Civil and Environmental Engineering Department
- Mark Jacobson - Solutions to climate change and impacts of fossil fuels
- Environment Assessment and Optimization Group
- Adam Brandt - Unconventional oil & gas, natural gas
- Earth System Science Department
- Rob Jackson - Hydraulic fracturing and drinking water quality; map natural gas leaks; unconventional oil & gas, natural gas
- Geophysics Department
- Mark Zoback (Emeritus) - Reservoir geomechanics: tight shale tight oil and gas production, unconventional oil & gas, natural gas
- Economics Department
- Frank Wolak - Energy markets, energy and behavior
- Program on Energy and Sustainable Development Spogli Institute
- Mark Thurber - Geopolitics of gas, energy markets
Fast Facts Sources
- Energy Mix (World 2022): Energy Institute. Statistical Review of World Energy. 2023.
- Energy Mix (US 2022): US Energy Information Agency (EIA). Total Energy: Energy Overview, Table 1.3. January 2024.
- Electricity Mix (World 2022): Energy Institute. Statistical Review of World Energy. 2023.
- Electricity Mix (US 2022): US Energy Information Administration (EIA). Electric Power Monthly. 2024.
- Global Natural Gas Uses (World 2019): International Energy Agency (IEA). Global natural gas demand per sector, 2005-2025. 2021.
- Change in Global Consumption (2017-2022): Energy Institute. Statistical Review of World Energy. 2023.
- GHG Emissions (World 2021): International Energy Agency (IEA). Greenhouse Gas Emissions from Energy. 2023.
- GHG Emissions (US 2022): International Energy Agency (IEA). Greenhouse Gas Emissions from Energy. 2023.
- Sources of Methane Emissions (US 2021): US Environmental Protection Agency (EPA). Methane Emissions by Source. 2024.
- Global Warming Potential of Methane (World 2023): US Environmental Protection Agency (EPA). Understanding Global Warming Potentials. 2024.
- Methane Emissions and Leakage (US 2019): US Energy Information Administration (EIA). Natural Gas and the Environment. 2022.
- Percent of Natural Gas Leaked (US 2018):Public Broadcasting System (PBS). The US Natural Gas Industry is Leaking Way More Methane Than Originally Thought. 2018; (US 2022) Stanford University. Stanford-Led Study: Methane Leaks Are Far Worse Than Estimates, At Least in New Mexico, But There’s Hope. 2022.
- Leakage Climate Impact (World 2022):
- Environmental Science & Technology. Chen et al, Quantifying Regional Methane Emissions in the New Mexico Permian Basin with a Comprehensive Aerial Survey. 2022.
- Proceedings of the National Academy of Sciences (PNAS). Xiao et al., Observation-derived 2010-2019 trends in methane emissions and intensities from US oil and gas fields tied to activity metrics. 2022.
- Rocky Mountain Institute (RMI). Coal vs. Natural Gas. 2023.
- Environmental Research Letters. Gordon et al., Evaluating net life-cycle greenhouse gas emissions intensities from gas and coal at varying methane leakage rates. 2023.
- Largest Proved Reserves (World 2020): Energy Institute. Statistical Review of World Energy. 2023.
- Largest Producer (World 2022): Energy Institute. Statistical Review of World Energy. 2023.
- Largest Consumer (World 2022): Energy Institute. Statistical Review of World Energy. 2023.
- Largest Proved Reserves (US 2021): US Energy Information Administration (EIA). US Crude Oil and Natural Gas Proved Reserves, Year-end 2021. 2022
- Largest Producer (US 2022): US Energy Information Administration (EIA). Which states consume and produce the most natural gas?. 2024.
- Largest Consumer (US 2022): US Energy Information Administration (EIA). Which states consume and produce the most natural gas?. 2023.
- Global Trade (World 2022): Energy Institute. Statistical Review of World Energy. 2023.
- Largest Exporter (World 2022): Energy Institute. Statistical Review of World Energy. 2023.
- Largest Importer (World 2022): Energy Institute. Statistical Review of World Energy. 2023.
More details available on request.
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