The number of natural gas customers will continue to rise, even as US decarbonizes
Officials from AGA said on Tuesday that the rumors of the gas industry's demise have been exaggerated. They released a study during a press briefing to prove it.
Richard Meyer, AGA Vice President of Energy Markets, Analysis and Standards said, "The number of natural gas customers grows in all of the scenarios." He continued, "We don't have to make a choice between adding new customers and helping them achieve ambitious environmental goals. However, to achieve those goals will require significant actions."
The report looks at the different options available to reduce emissions from gas utilities and their customers. These include different ways to combine those options. The report does not look at liquefied natural gas exports or the power generation sector.
The AGA has found that the United States can significantly reduce emissions by using current technologies, including high-efficiency applications, renewable gases, and methane reduction technologies and enhanced energy efficiency.
"Large amounts of renewable and low-carbon electricity and gases, and negative emissions technologies, will be required to meet an economy-wide 2050 net-zero target," the AGA said. However, the specific mix of solutions will vary across the country, the group said.
The best way to use resources will vary depending on the area. The climate, the prices of energy, the type of houses and businesses in the area all play a role in what is the best way to use resources.
The gas industry reports that greenhouse gas emissions from gas utilities made up about 13% of all U.S. emissions in 2019. The majority of these emissions come from customer emissions, which are those emitted from on-site consumption of gas, including residential, industrial, commercial and vehicle fuel applications.
The affordability of natural gas is a key feature, said AGA. Homeowners save more than $1,000 annually, relative to other energy sources, by using gas. The industry adds about one new customer every minute and 21,000 new business customers annually.
The U.S gas industry increased the number of residential customers by 900,000 between 2019 and 2020. This is the largest increase since 2006, according to the American Gas Association. There are now more than 76 million residential gas customers in America.
Some local governments have been banning new gas hookups in an effort to reduce the amount of carbon dioxide released into the air. Berkeley, California, became the first U.S. city to do this in 2019. New York City enacted a similar ban last December.
This effort goes against the idea of giving everyone a fair chance in the energy transition. Karen Harbert, president and CEO of AGA, said that any kind of mandate or regulation that would force people who can't afford it to buy more expensive appliances is not fair.
Benjamin Longstreth, senior attorney for the Natural Resources Defense Council’s Climate and Clean Energy Program, said that equity and affordability are important issues. But he also said that older systems are not the solution to climate change. "Not solving the problem of climate change, obviously, imposes extraordinary costs as well," he said.
"We're glad to see that AGA is working to come to terms with the need to reduce greenhouse gas emissions," Longstreth added in an email. "It's clear that the sector will have to change significantly to do so. We look forward to learning more about their report."