Natural gas is a colorless, odorless and highly energy-dense fuel composed primarily of methane (CH₄). It can be transported efficiently through pipelines or cooled into liquefied natural gas (LNG), enabling global trade. These characteristics have driven widespread adoption of natural gas and cemented its central role in global energy markets. The United States is the world’s leading producer of natural gas, a position it has held since 2011, accounting for roughly one-quarter of global production. U.S. natural gas production is projected to increase by 20 to 40 percent in 2050 compared to 2025 to meet growing domestic and international demand.
U.S. leadership in natural gas is enabled by innovations in hydraulic fracturing (or ”fracking”) and horizontal drilling, supported by decades of public and private investment. Early federal research and demonstration efforts at the Department of Energy (DOE) helped de-risk key gas production technologies and accelerate commercialization, paving the way for private-sector innovation and large-scale deployment. These technologies unlocked vast domestic resources, driving down energy costs, strengthening U.S. energy security and positioning it to become a net energy exporter.
Strong domestic production made the U.S. the world’s largest LNG exporter, and will help it maintain that position as global demand grows. LNG exports help allies access reliable energy, reduce reliance on less stable suppliers and lower emissions by displacing higher-emitting fuels. Natural gas strengthens U.S. geopolitical influence while advancing global energy security and environmental goals.
How is Natural Gas Used in the U.S.
Natural gas is central to U.S. energy security and economic competitiveness. It supports electricity generation, industrial production, transportation and home heating, and serves as a key input for energy-intensive supply chains such as fertilizers, chemicals and hydrogen. The growth of natural gas has also been a major driver of emissions reductions in the U.S. power sector.
Today, natural gas is the largest source of electricity generation in the U.S., a role it has held since 2016. Between 2005 and 2019, carbon dioxide (CO2) emissions from the U.S. power sector declined by roughly 35%, driven by the rapid growth of natural gas-fired power generation. Looking ahead, natural gas will support grid reliability, industrial growth and rising power demand from data centers and manufacturing, while enabling additional emissions reductions when paired with carbon capture and methane mitigation technologies.
Natural gas policy should focus on maintaining U.S. energy leadership while accelerating innovation to reduce emissions across the value chain:
Modernize Natural Gas Pipeline Infrastructure: Federal research, development and demonstration (RD&D) can advance next-generation pipeline systems, including new materials and advanced monitoring technologies, to improve infrastructure buildout and long-term performance. In order to meet growing U.S. energy demand, the U.S. will need a pipeline network capable of transporting higher volumes of natural gas safely and reliably, while reducing bottlenecks, improving system integrity and minimizing operational delays. While the U.S. has an extensive system of 3 million miles of natural gas pipelines, approximately half of the nation’s pipelines are more than 60 years old. As this critical infrastructure continues to age, modernizing the pipeline system is essential to ensure safety, reliability and long-term energy security.
Scale Emission Monitoring, Detection and Measurement: American natural gas is among the lowest emissions energy in the world, but increasingly, global buyers are requiring verified emissions data to access their markets. Nearly 60% of U.S. LNG exports go to countries with methane regulations, and forthcoming requirements in the European Union will require verified data for market access. Without credible measurement tools, U.S. producers risk losing competitiveness in key export markets.
The National Aeronautics and Space Administration (NASA) is uniquely positioned to advance a national strategy to assess current and emerging emissions monitoring capabilities. Leveraging NASA’s world-class satellite expertise, in partnership with private industry, can close critical data gaps, improve transparency and reliability of emissions measurement and strengthen the credibility of U.S. energy exports. A coordinated strategy will help ensure American LNG remains the global standard while reinforcing U.S. energy security and competitiveness.
Scale Clean, Firm Power Technologies & Bolster Domestic Energy Security: Carbon capture enables the scaling of clean, firm power by enabling gas-fired generation to reduce emissions while maintaining reliability and affordability. As electricity demand continues to grow, natural gas is expected to remain a major source of power generation, and carbon capture can enable these facilities to meet rising demand while lowering emissions. Captured carbon from these facilities can also serve as a reliable supply of CO2 for domestic enhanced oil recovery (EOR), supporting U.S. oil production and strengthening energy security. Preserving incentives such as the 45Q tax credit, supporting the build-out of carbon dioxide transport infrastructure and advancing carbon utilization pathways like EOR can improve project economics. Federal RD&D programs at DOE will also play a critical role in supporting advanced power generation system technologies and enabling widespread carbon capture deployment, similar to the role federal support played in scaling technologies like hydraulic fracturing.
Streamline Permitting for LNG and Natural Gas Infrastructure: Timely, predictable federal reviews are essential to maintaining U.S. leadership in global energy markets. Under the Natural Gas Act, the Federal Energy Regulatory Commission has exclusive authority to approve the siting, construction and operation of LNG export terminals and interstate natural gas pipelines. Clear, efficient timelines for these reviews will provide greater certainty for project developers, help prevent unnecessary delays and ensure U.S. infrastructure can keep pace with growing global demand. Timely and efficient permitting is critical to strengthening energy security and reinforcing America’s position in global energy markets.
Efficient and timely export approvals are also important to ensuring U.S. LNG can reach global markets. The Department of Energy is responsible for authorizing exports of natural gas to non-free trade agreement countries. Predictable and timely decisions can reduce uncertainty for investors, support long-term supply agreements with allies and reinforce America’s role as a reliable global energy supplier. Updating export approval processes to reflect modern market realities would strengthen U.S. competitiveness and energy leadership.
Expand U.S. LNG Exports to Strengthen Global Energy Security and Reduce Emissions: Policies should boost the competitiveness of U.S. LNG exports and expand global market access, leveraging LNG’s ability to advance energy security and global emissions reduction by displacing higher-emitting foreign fuels. Strengthening energy partnerships and financing tools, such as the Export-Import Bank of the U.S. (EXIM), can help deploy LNG infrastructure abroad and increase demand for U.S. exports. The federal government – EXIM, Development Finance Bank (DFC), U.S. Trade Representative (USTR), Department of Commerce, Department of Energy and National Energy Dominance Council – should work with importing countries to establish coordinated LNG partnerships that align regulatory frameworks, engage private industry and leverage U.S. financing tools to accelerate project development.
Developing systems in the U.S. to verify and differentiate lower-emission U.S. natural gas will strengthen the position of American producers in global markets. This effort could support a broader U.S. natural gas competitiveness strategy, with agencies such as the Department of Commerce and the State Department partnering with industry to promote U.S. energy exports and expand access to markets that value verified, lower-emissions energy. This is particularly important in regions like the European Union, where emerging regulatory frameworks increasingly favor lower-emissions gas.
Expanding U.S. LNG Export Capacity and Global Partnerships: The U.S. continues to expand its LNG export capacity, reinforcing its position as the world’s leading LNG exporter. Companies such as Cheniere Energy and Venture Global LNG are advancing major export projects along the Gulf Coast. At the same time, the U.S. government is forming historic LNG supply agreements with key allies, including the European Union and Japan, strengthening long-term energy security and market stability. Initiatives such as the U.S. Trade and Development Agency–U.S. Chamber of Commerce Global Gas Initiative are also helping to expand market access by supporting project development, facilitating partnerships and advancing infrastructure deployment in emerging economies. Together, these efforts are enhancing global energy security while creating new markets for American LNG.
Advancing Emissions Measurement and Monitoring Innovation: Federal agencies and private-sector innovators are accelerating the deployment of advanced emission detection technologies. Companies such as GHGSat are deploying high-resolution satellite-based platforms to detect and quantify emissions globally. These efforts are complemented by federal capabilities, including NASA-supported satellite systems, that can enhance data quality and validation. Improving emission detection and mitigation can prevent roughly $1 billion in lost commercial gas value annually in the U.S. Together, these technologies are improving measurement accuracy, enabling greater data transparency and supporting cost-saving resource recovery across the natural gas supply chain.
Scaling Carbon Capture on Natural Gas Systems: Industry and government are advancing carbon capture technologies to reduce emissions from natural gas power generation and industrial facilities while maintaining reliability. Companies such as Calpine are planning large-scale carbon capture projects at gas-fired facilities, including the Baytown Energy Center in Texas. Captured carbon provides a stable supply of CO2 that can serve as a valuable input for a range of products and industrial applications, while also supporting EOR to boost domestic energy production and strengthen energy security. Growing demand from hyperscalers for clean, firm power is also driving interest in carbon capture technologies, with companies like Google announcing a first-of-a-kind gas power carbon capture project to help meet their clean energy goals.