U.S. manufacturing is driving demand for natural gas Image By EPN Staff Energy usage in the U.S. manufacturing sector has been ticking up since a 2010 low, and consumption increased 6% between 2018 and 2022, according to the latest available numbers from the Energy Information Administration. This Manufacturing Energy Consumption Survey (MECS) is done every 4 years, and preliminary figures from the latest one show the third consecutive increase in consumption since the 2010 low, the EIA said. Natural gas led the way. “Natural gas consumption in the manufacturing sector increased by more than all other energy sources combined, as compared with the previous MECS results from 2018,” the EIA said. Why it matters Natural gas is widely recognized as the preferred fuel source for manufacturing because it is affordable, reliable and cleaner than alternate sources capable of generating energy. The U.S. possesses vast reserves of natural gas, and those reserves have increased substantially in the past three decades due to innovation and advances in production technologies. The bigger picture Meanwhile, the U.S. manufacturing sector is adapting to the imposition of tariffs under President Donald Trump on a range of finished products and raw materials, which are designed to support the long-term growth of domestic manufacturing. This reshoring of factories could drive demand for natural gas further, even as the fuel source gains greater importance for electricity generation and achieving that sector’s carbon-reduction goals. As of February there were 482,000 open manufacturing jobs in the United States, according to the Bureau of Labor Statistics. That’s less than 6.5% of the 7.6 million open jobs at the time, the bureau reported. The Bureau of Labor Statistics put average earnings for the sector at $35.16 an hour in a separate March report. More context MECS is "the only source for national estimates of energy-related characteristics, consumption and expenditures for manufacturers in the United States,” according to the EIA. It’s a nationally representative sample survey of approximately 15,000 establishments representing 97% to 98% of the manufacturing payroll. The survey reports estimated energy use across 79 different subsectors. It was first conducted in1985. Additional details One of the biggest changes in the latest MECS is the inclusion of specific hydrogen estimates, which were previously aggregated with other energy sources. This time around hydrogen in the manufacturing sector usage totaled some 170 trillion British thermal units (Btu) in 2022, outpacing some traditional fuels like diesel and heating oil. Beyond that, the biggest change by percentage came from non-combustible renewable energy generated onsite, which went up 125%, though it was still a very small part of the overall energy mix.
