Natural gas consumption to hit record levels in the U.S.

The U.S. natural gas market is preparing for a milestone in 2025. 

According to the latest Short-Term Energy Outlook, demand is expected to climb by 1%, reaching an unprecedented 91.4 billion cubic feet per day (Bcf/d). 

For companies dedicated to oil and gas production, this projection is more than just a number—it’s a signal of where opportunities may lie.

Record-breaking winter demand

The year began with a powerful boost. In January 2025, natural gas consumption reached a record 126.8 Bcf/d, 5% above the previous peak set just one year earlier. 

February followed the same trend, with 115.9 Bcf/d, surpassing all prior February records. 

Behind this spike was not only steady industrial and residential demand but also extreme weather events such as the polar vortex that struck mid-January, pushing heating needs higher.

The role of households

Seasonality continues to define the natural gas market. 

Demand typically peaks in the first months of the year, when heating dominates in both residential and commercial sectors. 

The data explains it clearly: 45% of U.S. households use natural gas as their main heating source, according to the U.S. Census Bureau.

Pressure from the electric sector

However, the story takes a turn in the spring and summer. 

Consumption in the electric sector, the traditional engine of growth in the past decade, fell compared to last year. 

While natural gas remains the most important source of electricity generation in the U.S., it has ceded ground in 2025 to coal, solar, and wind.

Balance in the market

So, what sustains the forecast? The balance comes from households and businesses. 

While power plants reduce their share, residential and commercial demand is rising enough to compensate. 

In other words, people’s need for heating and commercial activity is keeping the curve positive.

What to expect in 2026

Looking beyond 2025, the outlook shows a small retreat. 

The EIA expects a modest decline in 2026, mainly because of milder winters that would reduce heating consumption. 

This serves as a reminder: the natural gas market remains highly sensitive to weather patterns, infrastructure performance, and the pace of renewable energy integration.

Key takeaway for the industry

For producers, traders, and logistics companies, the message is clear: natural gas will continue to be a central player in the U.S. energy mix, but competition in the electric sector and climate variability demand closer monitoring. 

In times of transition, every percentage point of demand matters, and so does every decision to anticipate it.

Natural Gas Consumption to Hit Record Levels in the U.S.