Why Natural Gas Is Still Thriving In A World Chasing Net Zero

Forbes

a day ago

CAMERON LOUISIANA - JUNE 7: A large liquified natural gas transport ship sits docked in the ... More Calcasieu River on Wednesday, June 7, 2023, near Cameron, La. (Jon Shapley/Houston Chronicle via Getty Images)
With much of the world's attention focused on wind turbines, solar panels, and electric vehicles, natural gas has grown in importance as the backbone of modern energy systems. It fuels power plants, heats homes, drives industry, and—through liquefied natural gas (LNG)—connects continents. The newly released 2025 Statistical Review of World Energy highlights just how indispensable natural gas has become, despite mounting pressure to decarbonize.
Let's dig into the numbers behind the global gas market, with a focus on production, consumption, and the increasingly critical role of LNG exports.
U.S. Still Leads the Pack in Production
In 2024, global natural gas production reached a record-breaking 398.0 billion cubic feet per day (Bcf/d). The United States alone accounted for 25% of that, producing just under 100 Bcf/d. That marked a slight decline from the record output in 2023, but still more than five times Canada's output, its closest North American peer. Much of this strength comes from the shale gas revolution that began about 20 years ago, turning the U.S. into both a major gas producer and ultimately a leading LNG exporter.
The World's Top Three Natural Gas Producers in 2024.
Russia, which the U.S. overtook for first place among gas producers in 2011, remains the world's second-largest producer, with 60.8 Bcf/d of output in 2024. But that figure remains below its pre-sanction highs as exports to Europe dried up and pipeline projects faced delays. Moscow has attempted to pivot to Asian markets, but logistical and political hurdles have slowed progress.
Other top producers include:
Africa's contributions are modest in comparison. Algeria leads the continent with 9.1 Bcf/d, followed by Egypt and Nigeria. Infrastructure bottlenecks and underinvestment have limited the continent's broader potential.
Notably, over the past decade, more than half of global natural gas production growth has come from OECD countries, albeit production in the EU has declined by two-thirds. This underscores that despite a global push toward renewables, countries continue to seek flexible energy supplies that balance affordability with lower carbon intensity.
Consumption: Asia Rises, OECD Stabilizes
Global consumption of natural gas in 2024 hit an all-time high of 398 Bcf/d, more than double the level seen in 1990. Much of this growth has been driven by non-OECD nations—and especially Asia.
The U.S. remains the world's largest consumer at 87 Bcf/d, accounting for about 22% of global demand in 2024. Russia is in second place at 46 Bcf/d, although growth has slowed over the past decade.
China is third, with consumption more than doubling over the past 10 years to reach 42 Bcf/d. This reflects both rapid industrialization and government efforts to reduce air pollution by shifting growth away from coal.
Other notable consumers include:
Regionally, Asia-Pacific has nearly caught North America in total consumption. As of 2024, the region accounts for 23.6% of global demand—led by China, India, and Japan. OECD nations still make up over 43% of the total but there has been essentially no overall growth there since 2018.
Even Africa, long a minor player in gas demand, is beginning to scale. Countries like Algeria and Egypt are seeing stronger growth, both due to improved energy access and the local development of gas resources.
The data tells a compelling story: over the past decade, 74% of the 70 Bcf/d in global demand growth came from non-OECD nations—a reversal from the early 2000s when the developed world drove expansion.
LNG: The Real Game-Changer
If there's one segment that has transformed global gas dynamics in the past decade, it's liquefied natural gas. In 2024, global LNG exports hit nearly 546 billion cubic meters—or roughly 53 Bcf/d—tripling since 2010.
The United States now leads the world in LNG exports, shipping more than 11 Bcf/d in 2024. Just 15 years ago, the U.S. was building LNG import terminals. Today, it's not only energy self-sufficient, but also helping allies diversify away from Russian supply.
Qatar, the long-time global leader, is now second at 10.3 Bcf/d. While its export volumes have plateaued, Qatar is investing heavily in capacity expansion and could reclaim its crown in coming years. Australia is close behind, also at 10.3 Bcf/d, but faces declining output from mature fields.
Other notable exporters include:
Europe remains mostly a consumer of LNG rather than a supplier. Norway contributes modestly, while the rest of the continent plays a marginal role in exports.
Perhaps the most important observation here is how the LNG trade has shifted from a few key producers to a broad mix of suppliers across five continents. That diversification has created a more liquid and flexible gas market.
Looking Ahead: Natural Gas in a Decarbonizing World
Despite widespread climate commitments, natural gas remains essential to global energy stability. Its role as a bridge fuel—replacing coal while enabling the growth of intermittent renewables—has only grown in recent years.
Still, challenges remain. Price volatility, infrastructure constraints, and mounting regulatory pressure—particularly in Europe—are reshaping how gas is produced, moved, and consumed. The regulatory push toward carbon capture, hydrogen blending, and lower methane emissions will continue to evolve the landscape.
But if the past decade is any guide, natural gas is far from becoming obsolete. It's global, flexible, and adaptable—and if anything, it has cemented itself as the quiet giant of the energy world.
Coming next in the series: A deep dive into global coal trends—production, consumption, and where the energy transition is making (or missing) its mark.