Natural gas remains the leading source of electricity generation in the United States, but so far in 2025 natural gas has lost market share in the electric power sector to coal, solar and wind.
Natural gas consumption in the U.S. is expected to reach record levels by the end of the year.
The U.S. Energy Information Administration forecasts that consumption in 2025 will rise 1% to a record 91.4 billion cubic feet (Bcf) per day in its latest Short-Term Energy Outlook. Natural gas consumption is expected to increase across all sectors, except for electric generation, which has been the primary source of natural gas consumption growth in the previous decade.
Consumption began the year at high levels, driven by colder weather and a polar vortex event in mid-January. According to household data from the U.S. Census Bureau’s American Community Survey, 45% of U.S. households use natural gas as their primary heating fuel.
January consumption reached a record 126.8 Bcf, 5% higher than the previous record set in January 2025. February consumption was 115.9 Bcf per day, also 5% more than the previous record set in February 2021.
EIA analysts estimate consumption declined in the spring and summer compared with the same period last year. Use in the electric power sector is expected to decline, according to the outlook. Natural gas remains the leading source of electricity generation in the United States, but so far in 2025 natural gas has lost market share in the electric power sector to coal, solar and wind.
“We expect increases in natgas consumed in the residential and commercial sectors to offset decreases in natgas consumed in the electric power sector. We currently forecast U.S. natural gas consumption will decrease slightly in 2026, due in part to expected milder weather in the winter months and therefore less consumption in the residential and commercial sectors,” EIA analysts wrote.
