As the energy landscape shifts in the United States, natural gas is poised to unseat petroleum as the predominant energy source. This transition marks a significant shift from the era that began in 1950 when oil overtook coal as the leading energy provider.
The Rise of Natural Gas
Natural gas is on track to surpass oil by the end of the decade, with projections indicating this shift could occur as early as 2025. Toby Rice, CEO of EQT Corp., a major US gas producer, remarked, “I say we probably cross that threshold within the next couple years, and by 2030, we will have a big lead on petroleum.” This change underscores the influence of inexpensive natural gas, which has reordered the energy sector and reduced the demand for other fuels.
According to a recent Energy Information Administration (EIA) report, natural gas accounted for 36% of US energy consumption in 2025, nearly closing the gap with petroleum at 37%. The shale revolution, which boosted natural gas production, has played a crucial role in this narrowing gap. Concurrently, the US has seen a rise in electrification, reducing the demand for gasoline, the primary driver of domestic oil consumption.
Impacts on the Energy Sector
The increased use of natural gas is also evident in the power sector, where gas-fired plants supply over 40% of electricity. The growth of electric vehicles (EVs) and data centers has further amplified the demand for electricity, putting pressure on the grid. EV usage, in particular, has contributed to a decline in gasoline demand, which is unlikely to return to pre-pandemic levels despite increasing vehicle usage.
Mark Brownstein, senior vice president of energy transition at the Environmental Defense Fund, noted, “The facts don’t lie: The United States is in the midst of an energy transition, away from coal and oil, toward electricity produced by natural gas and renewables.”
Transition to Renewables
From 2015 to 2025, the US saw a significant shift as natural gas began replacing coal in power generation. The advent of fracking and horizontal drilling unlocked vast gas reserves, resulting in over 100 coal plants being converted to or replaced by gas generators between 2011 and 2020. Despite efforts during the Trump administration to revitalize coal, the trend toward cheaper energy sources like wind, solar, and gas continues.
Ira Joseph from Columbia University’s Center on Global Energy Policy highlighted the abundance and cost-effectiveness of gas, stating, “Gas is dominant in power because it’s so inexpensive. There’s just plentiful amounts of natural gas in this country.”
In addition to gas, renewable energy sources such as wind and solar have experienced rapid growth, surpassing the pace of natural gas, though the latter still shows substantial absolute growth. The flexibility of gas plants to adjust rapidly to fluctuating renewable power has complemented the rise of renewables in the energy mix.
The US also leads in the export of liquefied natural gas (LNG), with exports expected to double by the decade’s end. Shell predicts that LNG plants will consume 23% of US gas production by 2035.
“We’ve gone from the age of wood and horses to the age of coal to the age of petroleum, and now we are in the age of electrification,” said Rice. “And the age of electrification is going to be driven a lot by natural gas.”
Original Story at finance.yahoo.com