Find Natural Gas Providers For Your Home

Written By: David Cosseboom | Updated On: March 20th, 2025

How We Use Natural Gas

Natural gas heats our homes, heats our water, cooks our food and dries our clothes. Natural gas is also used to generate electricity that powers our homes. Natural gas usage accounts for 36 percent of the United States total energy consumption.

Natural gas consumption in the United States is spread across several sectors, each playing a significant role in overall demand. The largest consumer is the electric power sector, using natural gas to generate about 43% of the nation’s electricity. Its reliability and lower emissions compared to coal make it a preferred choice for many utilities.

While natural gas is considered a cleaner-burning fossil fuel compared to coal, its consumption still contributes to carbon emissions. Many utilities are working to reduce emissions by incorporating renewable natural gas and supporting carbon capture technologies. As the U.S. continues transitioning to cleaner energy, natural gas remains a crucial bridge, ensuring energy reliability while renewable resources expand.

The industrial sector is another major user, relying on natural gas for manufacturing processes, including producing chemicals, fertilizers, and steel. Meanwhile, the residential sector uses natural gas primarily for heating, cooking, and water heating, especially in colder regions where natural gas heating is common. The commercial sector, which includes schools, hospitals, and businesses, also depends on it for heating and powering equipment. Additionally, a smaller but growing share of natural gas is used in the transportation sector, mainly as compressed natural gas (CNG) or liquefied natural gas (LNG) to fuel vehicles.

This balanced mix of uses highlights natural gas’s versatility and its vital role in keeping the country’s energy needs met efficiently and reliably.

Where Natural Gas Comes From

Natural gas is a fascinating and versatile energy source that has been powering our homes and industries for decades. It forms deep beneath the Earth’s surface, created over millions of years from the remains of ancient plants and microorganisms. These organic materials were buried under layers of sediment and rock, where heat and pressure transformed them into the natural gas we use today. Think of it as a kind of “energy time capsule” from Earth’s distant past!

Most natural gas is found in underground reservoirs, often nestled alongside oil deposits or trapped within porous rock formations. To access it, energy companies drill wells into these reservoirs, allowing the gas to flow to the surface. Once collected, it’s processed to remove impurities and transported through pipelines to homes and businesses. Some natural gas also comes from renewable sources, like landfills or wastewater treatment plants, where methane is captured and purified for use.

What’s truly remarkable is how this ancient energy source makes its way into our daily lives, providing warmth, comfort, and convenience. Whether it’s heating your home on a chilly day or cooking your favorite meal, natural gas is a reliable and efficient partner in modern living. And with ongoing advancements in technology, we’re finding even cleaner and more sustainable ways to harness its potential for the future!

Deregulation of Natural Gas Service

Until the 1970s, federal oversight that limited pipelines and price controls from states kept companies out of the natural gas market. In 1978, Congress passed the Natural Gas Policy Act that bypassed local regulations and incentivized new production. The Natural Gas Wellhead Decontrol Act, passed in 1989, deregulated natural gas pricing and opened the door for states to allow deregulation of natural gas service.

Currently, eighteen states allow for deregulated natural gas service and seven of those states also allow for deregulated electric service. While the local utility still handles the delivery and maintenance of gas lines, deregulation allows customers to shop around for different pricing plans, contract terms, and even renewable energy options. This competition can lead to better rates and more flexible plans, but it also means there are more factors to consider when selecting a provider.

States with deregulated natural gas service

When choosing a natural gas provider, it’s important to consider:

• Pricing Structure – Decide between a fixed-rate plan for price stability or a variable-rate plan that fluctuates with market conditions.
• Contract Terms – Check if the provider offers month-to-month service or requires a long-term commitment.
• Fees & Charges – Look out for hidden fees, such as enrollment costs or early termination penalties.
• Customer Service & Reputation – Choose a provider with good reviews and responsive customer support.
• Sustainability Options – If eco-friendliness matters to you, look for providers offering renewable natural gas or carbon offset programs.

FAQs About Natural Gas

Read More About Natural Gas

• Understanding the Difference Between Fixed & Variable Rates
• Smart Ways to Reduce Your Gas Bill and Save Energy
• Everything You Need to Know About Smart Thermostats
• Your Guide to Tankless Water Heaters
• Get Assistance Paying Your Utility Bills

About the Author

David Cosseboom

David has been an integral part of some of the biggest utility sites on the internet, including InMyArea.com, HighSpeedInternet.com, BroadbandNow.com, and U.S. News. He brings over 15 years of experience writing about, compiling and analyzing utility data.