Natural gas production in the United States is on pace to decline this year as energy demands soar and concerns grow about sufficient flow of power for a reliable electric grid, according to the Energy Information Administration.
The agency revealed its forecasts Tuesday in its Short Term Energy Outlook, which now predicts 2024 will be the first year natural gas output has declined since 2020 — a development that is likely to fuel GOP criticism of President Joe Biden’s focus on clean energy as he prepares to leave office.
The EIA estimated that natural gas production in the U.S. will hit 103.5 billion cubic feet per day this year — dropping from 103.8 bcf per day in 2023. This is slightly higher than what the EIA predicted in September, which was around 103.4 bcf per day.
At the same time, the country’s natural gas consumption is soaring. The EIA projected domestic consumption will jump from 89.1 bcf per day last year to 90.1 bcf per day in 2024. Last month, the agency had estimated consumption would be around 89.9 bcf per day.
The EIA also estimated that the U.S. was on track to see smaller oil demand growth in the next year than previously forecasted. In the Tuesday report, the EIA predicted that U.S. oil demand will rise to 20.5 million barrels per day in 2025, down from previous projections of 20.6 million barrels. Demand for this year is reportedly expected to remain at 20.3 million barrels per day.
The decline in natural gas production comes as the Biden administration has prioritized electrification of the grid, backing alternative and renewable energy sources such as solar and wind. President Joe Biden and his energy policy have come under fire in recent months as key industry players, including grid operator PJM Interconnection, have warned of an imbalance.
Earlier this year, PJM raised its rates by more than 800%, pointing to the combined effect of power sources such as coal decreasing while the demand for energy is growing at a faster rate than renewable sources are being added.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The strain on the grid is only expected to grow in the coming years amid the artificial intelligence revolution, as tech giants develop massive data center facilities that are projected to use upward of 9% of electricity generated on the grid by 2030.
While gas output is projected to fall this year, the EIA has estimated production will increase to 104.6 bcf per day in 2025. At the same time, consumption is expected to fall back to 89.1 bcf per day the same year.
