Natural gas plays vital role in meeting energy demands for manufacturing, security, says AGA

As energy demands continue rising, natural gas will have an increasingly vital role in fueling and maintaining the competitiveness of U.S. manufacturing and advanced manufacturing, according to a new report from the Center for Strategic and International Studies (CSIS) with support from the American Gas Foundation (AGA).

“To effectively and successfully compete on the global economic stage when facing countries like China — and others — the U.S. must deploy all its advantages, including our energy advantage,” said AGA President and CEO Karen Harbert. “As we look at natural gas, we want to onshore energy intensive industries, we want to create new strategic industries, and we want to accelerate advanced manufacturing.

“There is a growing consensus from across the spectrum… on the immediate and persistent need for more energy to fuel this imperative for more advanced manufacturing and the renaissance that will come with it,” Harbert said.

The report , conducted by CSIS and funded by the American Gas Foundation, researched what recent trends imply for the strategic use of natural gas resources to support manufacturing and maintain energy security along pathways to a low-carbon economy.

“Having infrastructure in place where and when needed is crucial if government support and business investments are to catalyze reindustrialization that strengthens U.S. leadership in strategic industries and manufacturing competitiveness in the global market,” the report says. “As the world moves toward net-zero emissions, how much CO2 emissions companies and industries produce will affect their competitiveness.”

For instance, utilities in states attracting manufacturing investment are re-elevating natural gas in resource planning, according to the report, and natural gas — including hydrogen-capable natural gas combustion turbines — will be a means to ensure reliability while expanding renewables and energy storage resources.

Additionally, the carbon advantage of U.S. manufacturing offers a compelling benefit as the world works to reduce emissions. For example, CSIS noted a study of steel industry emissions from the top-producing countries and found that U.S. production is one of the least carbon-intensive, while China ranked last, according to the report.

“Maintaining economic competitiveness over higher-carbon manufacturers such as China and narrowing the intensity gap with Europe will require emissions reduction efforts throughout supply chains,” the report says. “The United States needs policies that help unlock the strategic value of natural gas to re-establish its industrial competitiveness while furthering decarbonization.”

American natural gas will be a critical part of any successful effort to reinvigorate American manufacturing and to compete in the 21st century — and doing so is vital to national security, according to the report.

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