Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Natural gas was the fastest-growing energy source in the world last year — when global energy consumption rose at its fastest pace in nearly a decade, according to a new International Energy Agency report.
Driving the news: Natural gas accounted for 45% of all energy consumption growth in 2018. Most regions and many industries, including the shipping sector, as shown in the above chart, are turning to the fuel as a cleaner-burning, cheap alternative to coal and oil.
The big picture: Development of new gas resources, led by America, has ushered in what the IEA predicated in 2011 would be a “golden age of gas.” This is reshaping geopolitics and complicating efforts to address climate change. While the cleanest-burning fossil fuel, natural gas still emits greenhouse gas emissions compared to sources like renewables or nuclear power.
The intrigue: One stark example of how environmental concerns overlap with natural gas is the shipping industry’s anticipated shift to liquefied natural gas (LNG) over fuel oil.
- The IEA projects a tenfold increase in LNG as shipping fuel by 2024, with container and cruise ships accounting for most of that.
- This shift is being chiefly driven by tougher environmental rules on the maritime industry that a U.N. agency will begin implementing in January 2020.
One level deeper: Much of the debate around natural gas focuses on electricity, such as its role in displacing coal and competing with (and sometimes complementing) variable renewable energy. But it's industrial uses for natural gas, such as chemicals and fertilizers, that are the biggest drivers of growth in most areas of the world, per the IEA report. These uses can’t be as easily replaced with renewables like electricity can.
What’s next: IEA sees more demand growth ahead, but not as fast as last year’s. It projects worldwide demand will rise more than 10% over the next 5 years, with China alone expected to account for 40% of the increase.
Go deeper: Energy pioneer tries to surf the natural gas wave