Our nation’s natural gas industry delivers affordable and reliable energy to millions of Americans and businesses every day, driving down emissions and helping to achieve our nation’s energy and environmental goals.
As the preferred source of home heating, a fundamental component for manufacturing, and the largest source of electric power generation in the United States, natural gas is an essential part of our energy sector and economy. Still, far too few people realize just how critical this clean and affordable fuel is to our daily lives.
The Advancing America series demonstrates the role of natural gas in fueling some of the most vital sectors to the U.S. economy. Whether it’s agriculture, hospitality or healthcare, natural gas is crucial to keeping the economy going.
Advancing America’s Pharmaceuticals
The Value of Natural Gas to the U.S. Pharmaceutical Sector
Natural gas is versatile and critically integrated into the pharmaceutical supply chain, improving efficiency while limiting reliance on foreign resources. In fact, data show that 99% of pharmaceutical feedstocks and reagents are derived from petrochemicals. These are irreplaceable products for millions of Americans who rely on prescriptions and other medications.
Restricting access to natural gas would drive up the cost of medicine at a time when Americans are feeling the pain of record inflation with higher prices for food, childcare, and other essentials. This analysis finds that mandated electrification of the industry would result in increased fuel expenditures of $135 million through 2050, threatening an industry that supports 1.8 million jobs, $338 billion in GDP, and accounts for $74 billion in annual federal, state, and local tax revenue. And for many medical products, such as low-cost generics with very small margins, increased energy costs likely translate directly to higher costs for patients.
Advancing America’s Healthcare
The Value of Natural Gas to the U.S. Healthcare Sector
When we think of essential industries, our nation’s healthcare sector typically ranks at the top. America’s doctors, nurses, hospital staff, care providers, and countless others are an integral part of our everyday lives. But we rarely think about all the things that are critical to a functioning healthcare sector. Affordable and reliable energy is in that category.
Survey data from the U.S. Energy Information Administration (EIA) show that 74% of hospitals use natural gas for space heating, and 80% of hospitals use natural gas for water heating. They also tend to consume more energy per square foot than any other commercial building type. And unlike other commercial buildings, hospitals remain open 24/7. Everything from ventilators to the lights during surgery requires a steady and reliable stream of energy.
Advancing America’s Hospitality
The Value of Natural Gas to the U.S. Hospitality Sector
In restaurants and hotel kitchens, natural gas is what fuels the stoves and ovens that deliver world-class, memorable meals. Hotels use natural gas to provide hot showers, clean linens, and to keep the lights no matter the situation. In colder climates, heated pools and saunas allow guests to relax, and fire pits keep people warm while connecting with family and friends and enjoying the outdoors. Natural gas is the reliable, affordable fuel that is central to so much of the fun we experience and the time we spend with friends and family and the world around us.
Advancing America’s Agriculture
The Value of Natural Gas to U.S. Agriculture and Agrochemicals
America’s farms and ranches have been key beneficiaries of the growth in U.S. natural gas production, which means all of us who rely on a strong domestic agriculture sector are benefitting. We may not think about everything that goes into the price we pay for a loaf of bread or a gallon of milk, but this analysis shows that what we see on grocery store shelves requires natural gas. You can draw a direct line from the availability of low-cost natural gas to the cost of food on grocery store shelves globally.
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AGA and our members are innovating towards a decarbonized future while continuing our commitment to deliver affordable, reliable, and safe energy that customers rely on everyday. Sign up today to get involved and influence the decisions that impact the natural gas industry!