Natural Gas in the US is abundant and affordable which in turn is driving significant job creation and economic growth.
Here are the facts you need about American natural gas:
What is natural gas?
Natural gas is a naturally occurring, combustible mixture of hydrocarbon gases made up of methane, ethane, propane, butane, and other gases.
How is it used and why should you care about it?
Natural gas is an important part of the U.S. energy supply. It is used every day by manufacturers and consumers to heat homes and businesses, to cook meals, and to power factories. Recently, natural gas has been propelled to the forefront of the energy conversation as discoveries of vast gas fields and technological advances in unconventional drilling have resulted it an abundance of affordable natural gas.
At its current stable price, domestic natural gas is five times cheaper than global oil on a thermal basis. This has resulted in savings for consumers at home, increased national energy security, and lower costs of production for manufacturers nationwide.
What can you do to preserve our natural gas advantage?
This abundance of natural gas has resulted in a measurable U.S. energy advantage and puts us on the right track to achieving energy independence. However, future uncertainty looms. Currently, there is no national energy policy in place to secure this advantage.
Help support the efforts of America's Energy Advantage by urging our country's policy makers and regulators to endorse a comprehensive energy policy that considers the implications to manufacturing. Take action now »
Saving American Consumers Money
Abundant and affordable natural gas is helping American consumers by lowering the prices they pay to heat their homes. It could also change what it means to "fill your car up with gas."
Truckers, sanitation trucks, governments and other groups that manage fleets of vehicles are making the switch to natural gas. Natural gas is priced about $1.50 lower than gasoline or diesel, creating big savings for fleet operators, who can pass those savings down to their customers, all without relying on a foreign source of energy.
The low cost of natural gas also keeps costs low for thousands of products, from food to cars.
Natural gas is used in the chemical and fertilizer industries as both a raw material and an energy source, and has significantly slashed the costs for manufacturers of energy-intensive products such as aluminum, steel and glass. From plastic bags and paints to metal parts and rubber wheels, natural gas is decreasing prices for consumers across a broad number of industries.
Heating & Electricity
All across the country, consumers are paying less for home heating and electricity thanks to abundant supplies of natural gas. New drilling technologies and an abundant supply have driven American natural gas prices to an all-time low.
Policymakers should ensure that they keep consumer prices in mind when considering the best use of the U.S.'s abundant natural gas supplies.
Growing the American Economy
Recent discoveries of natural gas reserves are growing the American economy and are projected to continue driving growth.
Policymakers have a once-in-a-generation opportunity to grow America's vital manufacturing sector through a sensible, all-encompassing energy policy that carefully considers the potential negative effects of exporting liquefied natural gas without limits.
The shale boom has made American factories more competitive and sparked a domestic manufacturing renaissance, leading to capital investment, new high-wage manufacturing jobs, and an increase in U.S. exports of value-added products.
The U.S. is the world's largest manufacturing economy, and growth in domestic manufacturing has a multiplier effect on the broader state of the economy.
- First, manufacturing creates more jobs outside its own sector than any other industry. Every single American manufacturing job is supported by five additional domestic jobs, from support industries and materials-supply to transportation, sales, and food service.
- Second, manufacturing creates value-added products for export, rather than simple raw materials. Every dollar invested in domestic manufacturing creates $8 in finished products.
- Third, manufacturing drives innovation. Companies are increasingly realizing that it is more efficient to conduct research and development near or on their factory floors. Thus, those countries that invest in their manufacturing sectors also get a head start in developing the next generation of products.
Manufacturing is very sensitive to the price of natural gas, which powers many of its operations and supplies the raw components of thousands of essential products. When prices are high and volatile, manufacturing suffers, jeopardizing those high-wage manufacturing jobs. Companies are more likely to build their manufacturing facilities in countries where natural gas prices are low and steady. That's exactly what America can offer if we enact a policy of caution in exporting our vast natural gas resources.