	Introduction

The role of natural gas in the U.S. economy has been a major part of the energy policy debate in the 114 th Congress. This report highlights key aspects of global natural gas markets, including supply and demand, and major U.S. developments. Select statutes of U.S. law related to natural gas can be found in Appendix G .
Some consider natural gas a potential bridge fuel to a lower-carbon economy, because it is cleaner burning than coal and oil. Natural gas combustion emits about one-half less carbon dioxide than coal and one-quarter less than oil when consumed in a typical electric power plant, offset somewhat by fugitive emissions. Natural gas combustion also emits less particulate matter, sulfur dioxide, and nitrogen oxides than coal or oil. In recent years, the United States has become the home to the shale gas revolution, as improved methods to extract natural gas from certain shale formations have significantly increased the resource profile of the United States. This has spurred other countries to try to develop shale gas, but progress is slow outside of North America. If the United States continues to and other countries can bring large new volumes of natural gas to market at a competitive price, then natural gas could play a larger role in the world's economy. Several key factors will determine whether significant new quantities of natural gas come to market, particularly unconventional natural gas resources. These factors include price, technical capability, environmental concerns, and political considerations. Many countries, both producing and consuming, are watching how the development of U.S. unconventional natural gas resources evolves. Key Points

Natural gas is likely to play a greater role in the world energy mix given its growing resource base and its relatively low carbon emissions compared to other fossil fuels. The world used 122,442 billion cubic feet (bcf) of natural gas in 2015, of which the United States consumed over 27,463 bcf, or about 23% (the most of any country). World natural gas consumption grew by 1.7% in 2015, which was below the 10-year average of 2.3%; U.S. consumption grew by 3%. U.S. unconventional natural gas reserves and production, particularly shale gas, have grown rapidly in recent years. The new shale gas resources have changed the U.S. natural gas position from a net importer to a potential net exporter. Global trade in natural gas is increasing and new players are entering on both the supply side and the import side, making the global gas market more integrated.
The role of natural gas in the U.S. economy has been a major part of the energy policy debate in the 114th Congress. This report briefly explains key aspects of global natural gas markets, including supply and demand, and major U.S. developments.
Natural gas is considered by some as a potential bridge fuel to a lower-carbon economy, because it is cleaner burning than its hydrocarbon alternatives coal and oil. Natural gas combustion emits about one-half less carbon dioxide than coal and one-quarter less than oil when consumed in a typical electric power plant, although fugitive gas emissions offset some of the advantages. Natural gas combustion also emits less particulate matter, sulfur dioxide, and nitrogen oxides than coal or oil. Additionally, improved methods to extract natural gas from shale formations have significantly increased the resource profile of the United States, which has spurred other countries to try to develop shale gas. If the United States and other countries can bring large new volumes of natural gas to market, particularly unconventional natural gas, then natural gas could play a larger role in the world's economy. Several key factors will determine whether this happens, including price, technical capability, environmental concerns, and political considerations. Many countries, both producing and consuming, are watching how the development of U.S. unconventional natural gas resources evolves.
Key Points
Natural gas is likely to play a greater role in the world energy mix given its growing resource base and its relatively low carbon emissions compared to other fossil fuels. The world used 122,442 billion cubic feet (bcf) of natural gas in 2015, of which the United States consumed 27,463 bcf (the most of any country). World natural gas consumption in 2015 grew by 1.7%, which was below the 10-year average of 2.3% but above the 0.6% increase in 2014; U.S. consumption grew by 3%. U.S. unconventional natural gas reserves and production, particularly shale gas, have grown rapidly in recent years. The United States accounts for 89% of global shale gas production. The new shale gas resources have changed the United States' natural gas position from a net importer to a potential net exporter. Other countries are now exploring their own shale gas resources. Global trade in natural gas is increasing and new players are entering on both the supply side and the import side, making the global gas market more integrated.