Which Countries Produce the Most Natural Gas?
Natural gas prices have risen since Russia’s invasion of Ukraine, exacerbating an already tight supply situation.
Making matters worse, Moscow has since cut gas exports to Europe to multi-year lows, sending Europe’s gas price to almost 10 times its pre-war average.
Using data from BP’s Statistical Review of World Energy, the above infographic provides further context on the gas market by visualizing the world’s largest gas producers in 2021.
Natural Gas Consumption at All-Time High in 2021
Natural gas is part of nearly every aspect of our daily lives. It is used for heating, cooking, electricity generation, as fuel for motor vehicles, in fertilizers, and in the manufacture of plastics.
The fuel is a naturally occurring hydrocarbon gas and non-renewable fossil fuel that forms below the Earth’s surface. Although the Earth has enormous quantities of natural gas, much of it is in areas far from where the fuel is needed. To facilitate transport and reduce volume, natural gas is frequently converted into liquefied natural gas (LNG), in a process called liquefaction.
Despite global efforts to reduce reliance on fossil fuels, natural gas consumption reached a new all-time high in 2021, surpassing the previous record set in 2019 by 3.3%.
Demand is expected to decline slightly in 2022 and remain subdued up to 2025, according to the International Energy Agency.
|Region||2021 Demand in Billion Cubic Meters (bcm)||2022P (bcm)||2025P (bcm)|
|Central and South America||153||147||153|
The Asia Pacific region and the industrial sector are expected to be the main drivers of global gas consumption in the coming years
Natural Gas Production, by Country
The world’s top 10 producers of natural gas account for about 73% of total production.
|Rank||Country||2021 Production (bcm)||Share %|
|#1||🇺🇸 United States||934.2||23.1%|
|#8||🇸🇦 Saudi Arabia||117.3||2.9%|
|#16||🇦🇪 United Arab Emirates||57.0||1.4%|
|🌐 Rest of the World||671.8||16.6%|
|🌐 Global Total||4,036.9||100.0%|
Natural gas accounts for 32% of primary energy consumption in the United States, the world’s largest producer. Russia is the second biggest producer, and also has at least 37 trillion cubic meters of natural gas reserves, the most in the world.
China’s natural gas production grew by 7.8% in 2021, and it has nearly doubled since 2011. This sustained growth in production is partly down to government policies incentivizing coal-to-gas switching.
Europe’s Natural Gas Crisis
Russia has significantly reduced flows of natural gas to Europe since Western nations imposed sanctions on the Kremlin following the invasion of Ukraine. Before the war, the European Union (EU) imported about 40% of its natural gas from Russia.
The gas is transported by the Nord Stream system, a pair of offshore natural gas pipeline networks in Europe that run under the Baltic Sea from Russia to Germany.
Russian energy giant Gazprom recently halved the amount of natural gas flowing through the Nord Stream 1 pipeline to 20% of capacity, blaming Western sanctions for a delay in the delivery in a necessary turbine. EU officials say Russia is “weaponizing” its gas supply.
Amid tensions, the EU bloc outlined a plan to phase out dependence on Russian fossil fuels. Lithuania ceased Russian gas imports at the beginning of April. Estonia’s and Latvia’s imports also dropped to zero at the start of that month. Bulgaria, the Netherlands, and Poland all announced that they do not intend to renew long-term contracts with Gazprom.
Despite these efforts, Europe remains dependent on Russia for its supply of natural gas, at least in the short and medium term.
What Electricity Sources Power the World?
Coal still leads the charge when it comes to electricity, representing 35% of global power generation.
What Powered the World in 2022?
In 2022, 29,165.2 terawatt hours (TWh) of electricity was generated around the world, an increase of 2.3% from the previous year.
In this visualization, we look at data from the latest Statistical Review of World Energy, and ask what powered the world in 2022.
Coal is Still King
Coal still leads the charge when it comes to electricity, representing 35.4% of global power generation in 2022, followed by natural gas at 22.7%, and hydroelectric at 14.9%.
Over three-quarters of the world’s total coal-generated electricity is consumed in just three countries. China is the top user of coal, making up 53.3% of global coal demand, followed by India at 13.6%, and the U.S. at 8.9%.
Burning coal—for electricity, as well as metallurgy and cement production—is the world’s single largest source of CO2 emissions. Nevertheless, its use in electricity generation has actually grown 91.2% since 1997, the year when the first global climate agreement was signed in Kyoto, Japan.
Renewables on the Rise
However, even as non-renewables enjoy their time in the sun, their days could be numbered.
In 2022, renewables, such as wind, solar, and geothermal, represented 14.4% of total electricity generation with an extraordinary annual growth rate of 14.7%, driven by big gains in solar and wind. Non-renewables, by contrast, only managed an anemic 0.4%.
The authors of the Statistical Review do not include hydroelectric in their renewable calculations, even though many others, including the International Energy Agency, consider it a “well-established renewable power technology.”
With hydroelectric moved into the renewable column, together they accounted for over 29.3% of all electricity generated in 2022, with an annual growth rate of 7.4%.
France’s Nuclear Horrible Year
Another big mover in this year’s report was nuclear energy.
In addition to disruptions at the Zaporizhzhia nuclear power plant in Ukraine, shutdowns in France’s nuclear fleet to address corrosion found in the safety injection systems of four reactors led to a 4% drop in global use, year-over-year.
The amount of electricity generated by nuclear energy in that country dropped 22% to 294.7 TWh in 2022. As a result, France went from being the world’s biggest exporter of electricity, to a net importer.
Powering the Future
Turning mechanical energy into electrical energy is a relatively straightforward process. Modern power plants are engineering marvels, to be sure, but they still work on the same principle as the very first generator invented by Michael Faraday in 1831.
But how you get the mechanical energy is where things get complicated: coal powered the first industrial revolution, but heated the planet in the process; wind is free and clean, but is unreliable; and nuclear fission reliably generates emission-free electricity, but also creates radioactive waste.
With temperature records being set around the world in the summer, resolving these tensions isn’t just academic and next year’s report could be a crucial test of the world’s commitment to a clean energy future.
How Mine Permitting Delays Impact the Transition to a Green Economy
Currently, the U.S. has a backlog of more than 280 mining projects awaiting permits.
Mine Permitting Delays and the Transition to a Green Economy
Minerals are essential components in many of our daily-use products, such as cell phones, laptops, and cars.
In fact, every American uses nearly 40,000 pounds of newly mined materials each year.
In the United States, however, the current permitting process makes it difficult for businesses to invest in the extraction and processing of minerals, such as copper.
This graphic by Northern Dynasty explores the untapped potential of mineral resources in America.
Copper, a Critical Material
In 2023 the U.S. Department of Energy officially added copper to its critical materials list, following the examples of the European Union, Japan, India, Canada, and China.
Copper is a highly efficient conductor of electricity and is considered vital for clean energy technologies such as solar, wind energy, and electric vehicles.
Green energy-related copper demand is expected to increase by nearly 600% by 2030. In this scenario, the copper market could see an annual deficit of up to about 1.5 million tonnes by 2035.
Despite having more than 53 million tons of copper reserves, the U.S. imports 45% of its copper from other countries.
This is the highest level of import reliance in over 30 years. One of the biggest reasons for this is the country’s mine permitting process.
A Rigorous Mine Permitting Process
Mines are large-scale projects that demand extensive research and policies. As a result, mining projects can take 16 years, or more, to start production.
Currently, the U.S. Bureau of Land Management—which regulates land use in the country—has a permitting backlog of more than 280 mining projects.
In addition, environmental activists have adopted a “not in my backyard” stance towards domestic mining. As a result, companies have often had to resort to litigation to make any progress in the permitting process.
“Activists have weaponized the government bodies that are essential to the safe and responsible development of domestic mines,” says Michael Westerlund, VP Investor Relations at Northern Dynasty Minerals.
The company owns the largest undeveloped copper deposit in the world, named Pebble, in Alaska. Pebble and other five major copper projects totaling over 11 billion tonnes in copper resources have been delayed because of the Federal permitting process.
The Largest Undeveloped Copper Deposit in the World
The Pebble Project has been through a roller coaster of regulatory activity for the past 15 years.
Recently, the U.S. Environmental Protection Agency banned the depositing of mining waste near the mining project in Alaska, citing potential harm to the local sockeye salmon industry.
However, the veto directly contradicts findings from the Federal government that concluded that mining and fishing could coexist in the region.
“Alaska does resource development better than any other place on the planet, and our opportunities to show the world a better way to extract our resources should not be unfairly preempted by the Federal Government”
–Alaska Governor Mike Dunleavy
Projects like Pebble can provide significant economic benefits and support the U.S. transition to a greener future. With the current regulatory uncertainty for U.S. developers, where the much-needed supply of copper will come from is unknown.
Click here to learn more about Pebble.
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