Natural Gas Closes in on Oil’s Top Energy Perch

Natural gas is poised to surpass petroleum as the top U.S. energy source by 2030, with the gap between the two narrowing significantly in the past decade. In 2025, natural gas accounted for 36% of U.S. energy consumption, just shy of petroleum’s 37%. The shale revolution has supercharged natural gas output, while electrification and rising power demand have contributed to the shift. The Energy Information Administration expects petroleum demand to rise 0.6% from 2025 to 2027, while gas demand increases 3.4%, further narrowing the gap. The transition from oil to gas is driven by the economics of cheap gas, which has reordered parts of the energy sector and pushed out competing fuel sources. Electric vehicle use and data center development have also boosted electricity demand from gas-fired power plants, with the grid generating more than 40% of its power by burning natural gas. The rise of electrification and renewables has led to a decline in coal usage, with gas largely displacing coal as the nation’s largest power plant fuel. The U.S. is already the world’s largest exporter of liquefied natural gas, and shipments are set to roughly double by the end of the decade. While renewable energy has outpaced the growth of gas, natural gas is expected to play a significant role in the age of electrification, according to industry experts.