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How Was Natural Gas Formed?

The main ingredient in natural gas is methane, a gas (or compound) composed of one carbon atom and four hydrogen atoms. Millions of years ago, the remains of plants and animals (diatoms) decayed and built up in thick layers.  This decayed matter from plants and animals is called organic material — it was once alive.  Over time, the sand and silt changed to rock, covered the organic material, and trapped it beneath the rock.  Pressure and heat changed some of this organic material into coal, some into oil (petroleum), and some into natural gas — tiny bubbles of odorless gas.

Three images, all about Petroleum & Natural Gas Formation.

The first image is about the Ocean 300 to 400 million years ago. Tiny sea plants and animals died and were buried on the ocean floor. Over time, they were covered by layers of sand and silt.

The second image is about the Ocean 50 to 100 million years ago. Over millions of years, the remains were buried deeper and deeper. The enormous heat and pressure turned them into oil and gas.

The third image is about Oil & Gas Deposits. Today, we drill down through layers of sand, silt, and rock to reach the rock formations that contain oil and gas deposits.

Source: U.S. Energy Information Administration (Public Domain)

How Do We Get Natural Gas?

Did You Know?

Because natural gas is colorless, odorless, and tasteless, mercaptan (a chemical that smells like sulfur) is added before distribution, to give it a distinct unpleasant odor (it smells like rotten eggs). This added smell serves as a safety device by allowing it to be detected in the atmosphere, in cases where leaks occur.

Operators Preparing a Hole for the Explosive Charges Used in Seismic Exploration
Operators Preparing a Hole for the Explosive Charges Used in Seismic Exploration

Source: Stock photography (copyrighted)

The search for natural gas begins with geologists, who study the structure and processes of the Earth. They locate the types of rock that are likely to contain gas and oil deposits.

Today, geologists' tools include seismic surveys that are used to find the right places to drill wells. Seismic surveys use echoes from a vibration source at the Earth’s surface (usually a vibrating pad under a truck built for this purpose) to collect information about the rocks beneath. Sometimes it is necessary to use small amounts of dynamite to provide the vibration that is needed.

Scientists and engineers explore a chosen area by studying rock samples from the earth and taking measurements. If the site seems promising, drilling begins. Some of these areas are on land but many are offshore, deep in the ocean. Once the gas is found, it flows up through the well to the surface of the ground and into large pipelines.

Some of the gases that are produced along with methane, such as butane and propane (also known as "by-products"), are separated and cleaned at a gas processing plant. The by-products, once removed, are used in a number of ways. For example, propane can be used for cooking on gas grills.

Natural gas withdrawn from a well may contain liquid hydrocarbons and nonhydrocarbon gases. This is called "wet" natural gas. The natural gas is separated from these components near the site of the well or at a natural gas processing plant. The gas is then considered "dry" and is sent through pipelines to a local distribution company, and, ultimately, to the consumer.

Dry natural gas is also known as consumer-grade natural gas. In addition to natural gas production, the U.S. gas supply is augmented by imports, withdrawals from storage, and by supplemental gaseous fuels.

Most of the natural gas consumed in the United States is produced in the United States. Some is imported from Canada and shipped to the United States in pipelines. A small amount of natural gas is shipped to the United States as liquefied natural gas (LNG).

We can also use machines called "digesters" that turn today's organic material (plants, animal wastes, etc.) into natural gas. This process replaces waiting for millions of years for the gas to form naturally.

Last Reviewed: May 24, 2012

Natural Gas Statistics

2011 data except where noted:

U.S. Production (Dry gas production) 23,000 billion cubic feet
U.S. Consumption 24,369 billion cubic feet
U.S. Imports 3,453 billion cubic feet
U.S. Exports 1,507 billion cubic feet
Wellhead Price $3.95 per thousand cubic feet (Nominal)
Average City Gate Price $5.62 per thousand cubic feet
Average Price Delivered to Consumers  
    Residential
$10.80 per thousand cubic feet
    Commercial
$8.86 per thousand cubic feet
    Industrial
$5.02 per thousand cubic feet
$4.87 per thousand cubic feet
Ranking of State Residential Prices #1 — Hawaii
Natural Gas Consumption by End Use:  
  • electric power
  • industrial
  • residential
  • commercial
  • lease and plant fuel
  • transportation (pipeline & vehicle fuel) & other
  • 31%
  • 28%
  • 19%
  • 13%
  • 6%
  • 3%
LNG Imports 349 billion cubic feet
Number of U.S. Producing Gas and Gas Condensate Wells (2010) 487,627
Pipeline Miles (Lower 48 states) (2008) 305,954 miles
Dry Natural Gas Proved Reserves (2009) 272,509 billion cubic feet
Natural Gas Percentage of Electricity Generation 24.8%
Natural Gas Percentage of Electric Industry Capacity (2010) 39.2%
Top Producing States #1 — Texas
Top U.S. Gas Fields (2009) (PDF) #1 — Newark East
Top Producing Companies (2009) (PDF) #1 — Chesapeake Operating Inc.
World Production (2010) 112.9 trillion cubic feet
World Consumption (2010) 112.1 trillion cubic feet

Last Updated: May 24, 2012