Natural Gas Update: Challenges Persist

The NPC Study estimates that natural gas demand will increase by slightly more than 30% over the next decade.
The U.S natural gas demand has grown from 19 Trillion Cubic Feet (TCF) in 1990 to approximately 22 TCF in 1998, or about 2% per year, and has continued to represent about one quarter of the nation’s fuel needs.

EIA estimates that natural gas demand will increase to 34.7 TCF by 2020, an increase of about 60%.

Estimated demand in 2001 may be 0.5 – 1.0 TCF lower than the NPC projection for that year. The NPC Study assumed GDP growth of 2.5% p.a. Actual GDP growth will be lower. As a result, natural gas demand will be lower.

Key Issue: Is reduced gas demand, induced by lower economic activity, masking problems in the supply base?