As long ago as 1000 BC the Greeks are credited with the discovery of natural gas. According to legend, a goat herdsman was startled by what he called a "burning spring." In actuality, lightning had ignited natural gas that was seeping from the ground, resulting in an Olympic torch of sorts. Not recognizing the potential of this natural phenomenon, the Greeks proclaimed it divine and a temple was built on the spot to the Oracle of Delphi.
While the Greeks did not originally appreciate the energy potential from these burning springs, it was the Chinese who soon did. Not long after the temple was constructed at the Oracle of Delphi, the Chinese were building the first crude gas pipelines. These were constructed from bamboo poles and were used to transport natural gas for the evaporation of salt from sea water. It is believed by some that the wells that produced this gas were as deep as 2,000 feet!
In the late 1700s and early 1800s, the beginnings of the gas industry emerged in Europe. Lighting was the primary use for natural gas during this period, fueled by "manufactured gas" (produced by burning coal in a closed furnace). The heat from the burning coal drove the gas out of the furnace where it was then captured and transported via wooden pipes to these early end users. Unfortunately, this process was both expensive and hazardous to the environment.
Meanwhile, on the other side of the Atlantic, gas lighting was first introduced into the natural history museum of Philadelphia’s Independence Hall in the early 19th century. And in 1816, manufactured natural gas was piped through a gas distribution system in the city of Baltimore to fuel gas street lamps. Natural gas was not used for many purposes other than lighting at this time because of the difficulty involved in transporting it to the homes and businesses where it could be consumed.
A few years later, residents of Fredonia, New York noticed gas bubbles on the surface of a nearby creek. To tap into this reservoir, a gunsmith named William Hart drilled a 27-foot hole, covered it with a large barrel and piped the gas to nearby homes. This tiny, primitive contraption was America’s first natural gas well, and the beginnings of the robust industry we know today. Ultimately, the Fredonia Gas and Light Company was born of this discovery – the nation’s first natural gas company. Ironically, most of the natural gas discovered during this time was regarded as a nuisance because it interfered with the original intent of the well, which was to access water or brine. For the booming oil industry, natural gas was equally an unwelcome by-product of the drilling process. Gas wells discovered during the search for oil were routinely allowed to flow for months while oilmen waited for oil to appear. And gas that was produced as a by-product of petroleum drilling was often flared – a worthless hindrance because, unlike oil, it had to be piped to be of any use.
While natural gas was consumed for nearly the entire century, it wasn’t until 1891 that the nation saw its first significant natural gas pipeline. This pipeline was 120 miles long and carried gas from supply fields in central Indiana to the booming metropolis of Chicago, Illinois. Amazingly, this first pipeline used no artificial compression but relied completely on the natural underground pressure of 525 pounds per square inch (psi). As you might imagine, this and other primitive pipelines were not terribly efficient. And without adequate technology for seamlessly joining sections of pipe, or for maintaining the quality of the pipe itself, the industry did not develop extensively until the 1920s and later. During the Second World War years, advances in metallurgy and welding finally made delivery of natural gas to areas of consumption feasible. Thousands of miles of pipe were constructed and the nation saw the beginnings of an extensive and efficient natural gas delivery system.
The advancements in this technology were ultimately responsible for the natural gas industry as we know it today. As long-distance transmission of natural gas became possible, the cost of the commodity dropped, making it competitive for the first time with other fuels. Now a profitable industry, gas was used for space heating as well as lighting. After World War II, the nation’s reviving economy created a huge demand for natural gas and the transmission industry boomed. This was fueled by demand for natural gas for manufacturing, cooling and refrigeration – and even electric power generation.
Since the 1960s, there has been continued expansion of the interstate pipeline system including major projects to bring Canadian gas into the U.S. This, along with regulatory changes that eased restrictions on the transport of natural gas, has resulted in an integrated natural gas grid across Canada and the United States. There has also been huge advancements in the exploration and production industry resulting in more efficient and cost-effective drilling. Most recently, the industry has benefited from a large increase in construction of gas-fired electric generation, thanks to natural gas’ reputation as the cleanest burning fossil fuel. This has resulted in significant convergence between the natural gas and electricity industries as well as increased demand for natural gas as a fuel for electric generation.
Until recently it was assumed that natural gas demand would continue to grow while the resource base shrank, resulting in a growing imbalance between demand and domestic supplies. But by the late 2000s gas producers responded by exploiting non-traditional gas resources and increasing U.S. production to levels not seen since the 1970s. This growth in supply, coupled with a renewed emphasis on energy efficiency in the U.S., has led to suggestions that demand may be met by domestic and Canadian supplies well into the future. With the growth in supply, five liquefied natural gas (LNG) export terminals were placed into service between 2016 and 2020. During the same time frame, multiple export pipelines into Mexico were expanded and/or newly constructed. The result was that by 2019 net imports became negative, meaning the U.S. was a net exporter as U.S. gas production exceeded consumption. Suddenly rather than being an importer of natural gas, the U.S. became a supplier to Asia, Europe, and Mexico.