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Natural gas explained Use of natural gas

The United States consumed 32.50 trillion cubic feet (Tcf) of natural gas in 2023, the equivalent of about 33.61 quadrillion British thermal units (quads) and about 36% of U.S. total primary energy consumption.

  • Natural gas consumption by sectors, amount, and percentage share of total U.S. natural gas consumption in 2023 was:1
  • electric power12.93 Tcf40%
  • industrial10.51 Tcf32%
  • residential4.48 Tcf14%
  • commercial3.31 Tcf10%
  • transportation1.27 Tcf4%

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Electricity generation and space heating are the primary uses for natural gas in the United States

Most U.S. natural gas use is for generating electricity and for space heating, but these aren't the only uses.

The electric power sector uses natural gas to generate electricity and produce useful thermal output. In 2023, the electric power sector accounted for about 40% of total U.S. natural gas consumption, and about 42% of the U.S. electric power sector's primary energy consumption was natural gas.

Most electricity is sold to (purchased by) the energy end-use sectors—commercial, industrial, residential, and transportation. The energy content of electricity sales is included in each sector's end-use energy consumption.2 The industrial and commercial sectors use natural gas to generate electricity that they use nearly all of (direct use). Natural gas accounted for about 43% of total utility-scale U.S. electricity generation by all sectors in 2023.

In 2023, the industrial sector accounted for about 32% of total U.S. natural gas consumption, and about 42% of the U.S. industrial sector's end-use energy consumption was natural gas. Industry uses natural gas for many purposes, including electricity generation (primarily for industrial facilities) and as a feedstock (raw material) to make products.

In 2023, the residential sector accounted for about 14% of total U.S. natural gas consumption, and about 41% of U.S. residential sector end-use energy consumption was natural gas. About 60% of U.S. homes use natural gas for space and water heating, cooking, and clothes drying.

In 2023, the commercial sector accounted for about 10% of total U.S. natural gas consumption, and about 37% of the commercial sector end-use energy consumption was natural gas. Natural gas is a major energy source for U.S. commercial buildings. Some commercial buildings use natural gas to generate electricity and to heat spaces with combined heat and power systems.

In 2023, the transportation sector accounted for about 4% of total U.S. natural gas consumption, and about 5% of transportation sector total end-use energy consumption was natural gas. About 96% of the sector's natural gas consumption was to power the compressors that move natural gas through transmission and distribution pipelines. Nearly all natural gas consumption in vehicles is by government and private vehicle fleets as compressed and liquefied natural gas.

Texas is the largest natural gas-consuming state

Natural gas is used throughout the United States, but five states accounted for about 39% of total U.S. natural gas consumption in 2023.4

  • The five top natural gas-consuming states and their percentage shares of total U.S. natural gas consumption in 2023 were:4
  • Texas15.7%
  • California6.4%
  • Louisiana6.1%
  • Pennsylvania5.7%
  • Florida5.0%

1 Source: U.S. Energy Information Administration, Monthly Energy Review, Table 4.3, May 2024. Sum of shares may not equal 100% because of independent rounding. Data are preliminary.
2 End-use energy consumption is the end use sectors' (residential, commercial, industrial, and transportation) consumption of primary energy plus electricity sales to ultimate customers. The energy associated with electrical system energy losses is not included.
3 Utility-scale includes electricity generation by power plants with at least one megawatt of electricity generation capacity.
4 Source: U.S. Energy Information Administration, Natural Gas Annual, September 2024

Last updated: October 31, 2024; preliminary data for 2023.