Natural gas generation hit record highs in summer, forecast expects rising demand in winter

Natural gas produced more watt hours this summer than ever before, and a winter-outlook study projects that heating needs through March will drive higher natural gas demand. The increased demand will make coal economically favorable for electricity generation, leading to a temporary switch from gas to coal.

The U.S. generated more than 7.1 million megawatt hours of electricity on Aug. 2, 2024, a record high, according to new data from the Energy Information Administration. This was about half of all the electricity generated in the lower 48 that day. The average American household consumes about 899,000 watt hours of electricity per month, or roughly about 30,000 watt hours per day. 

The record was 6.8% higher than the previous summer’s record set on July 28, 2023. The EIA attributed the increase to hotter weather, lower gas prices, and additional natural-gas generating capacity coming online.

In the first nine months of this year, natural gas as a share of U.S. electricity generation hit new highs of 46% of the total, Reuters reported.

The Natural Gas Supply Association released its winter outlook last week, which forecasts 7% colder temperatures between November and March over that of last year. The  NGSA reports that the increased temperatures are a result of last winter’s warmer-than-normal weather.

The increased demand, according to the report, may increase gas prices leading to a temporary increase in coal over natural gas for electricity generation. At the same time, the outlook forecasts an increase in commercial and residential demand by 14% between November and March.