Which Countries Produce the Most Natural Gas?
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Which Countries Produce the Most Natural Gas?

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The Largest Producers of Natural Gas

Which Countries Produce the Most Natural Gas?

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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.

Region2021 Demand in Billion Cubic Meters (bcm)2022P (bcm)2025P (bcm)
Africa169172188
Asia Pacific895907990
Central and South America153147153
Eurasia634619632
Europe 604549536
Middle East564582627
North America1,0841,1081,116
World 4,1034,0834,243

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.

RankCountry2021 Production (bcm)Share %
#1🇺🇸 United States934.223.1%
#2🇷🇺 Russia701.717.4%
#3🇮🇷 Iran 256.76.4%
#4🇨🇳 China209.25.2%
#5🇶🇦 Qatar 177.04.4%
#6🇨🇦 Canada172.34.3%
#7🇦🇺 Australia 147.23.6%
#8🇸🇦 Saudi Arabia 117.32.9%
#9🇳🇴 Norway114.32.8%
#10🇩🇿 Algeria100.82.5%
#12🇹🇲 Turkmenistan79.32.0%
#13🇲🇾 Malaysia 74.21.8%
#14🇪🇬 Egypt 67.81.7%
#15🇮🇩 Indonesia 59.31.5%
#16🇦🇪 United Arab Emirates57.01.4%
#17🇺🇿 Uzbekistan50.91.3%
#18🇳🇬 Nigeria 45.91.1%
🌐 Rest of the World671.816.6%
🌐 Global Total4,036.9100.0%

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.

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Energy

Charted: 40 Years of Global Energy Production, by Country

Here’s a snapshot of global energy production, and which countries have produced the most fossil fuels, nuclear, and renewable energy since 1980.

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The Biggest Energy Producers since 1980

Energy was already a hot topic before 2022, but soaring household energy bills and a cost of living crisis has brought it even more to the forefront.

Which countries are the biggest energy producers, and what types of energy are they churning out? This graphic by 911 Metallurgist gives a breakdown of global energy production, showing which countries have used the most fossil fuels, nuclear, and renewable energy since 1980.

All figures refer to the British thermal unit (BTU), equivalent to the heat required to heat one pound of water by one degree Fahrenheit.

Editor’s note: Click on any graphic to see a full-width version that is higher resolution

1. Fossil Fuels

Biggest Producers of Fossil Fuel since 1980

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While the U.S. is a dominant player in both oil and natural gas production, China holds the top spot as the world’s largest fossil fuel producer, largely because of its significant production and consumption of coal.

Over the last decade, China has used more coal than the rest of the world, combined.

However, it’s worth noting that the country’s fossil fuel consumption and production have dipped in recent years, ever since the government launched a five-year plan back in 2014 to help reduce carbon emissions.

2. Nuclear Power

Biggest Producers of Nuclear Energy since 1980

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The U.S. is the world’s largest producer of nuclear power by far, generating about double the amount of nuclear energy as France, the second-largest producer.

While nuclear power provides a carbon-free alternative to fossil fuels, the nuclear disaster in Fukushima caused many countries to move away from the energy source, which is why global use has dipped in recent years.

Despite the fact that many countries have recently pivoted away from nuclear energy, it still powers about 10% of the world’s electricity. It’s also possible that nuclear energy will play an expanded role in the energy mix going forward, since decarbonization has emerged as a top priority for nations around the world.

3. Renewable Energy

Biggest Producers of Renewable Energy

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Renewable energy sources (including wind, hydro, and solar) account for about 23% of electricity production worldwide. China leads the front on renewable production, while the U.S. comes in second place.

While renewable energy production has ramped up in recent years, more countries will need to ramp up their renewable energy production in order to reach net-zero targets by 2050.

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What is the Cost of Europe’s Energy Crisis?

As European gas prices soar, countries are introducing policies to try and curb the energy crisis.

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What is the Cost of Europe’s Energy Crisis?

This was originally posted on Elements. Sign up to the free mailing list to get beautiful visualizations on natural resource megatrends in your email every week.

Europe is scrambling to cut its reliance on Russian fossil fuels.

As European gas prices soar eight times their 10-year average, countries are introducing policies to curb the impact of rising prices on households and businesses. These include everything from the cost of living subsidies to wholesale price regulation. Overall, funding for such initiatives has reached $276 billion as of August.

With the continent thrown into uncertainty, the above chart shows allocated funding by country in response to the energy crisis.

The Energy Crisis, In Numbers

Using data from Bruegel, the below table reflects spending on national policies, regulation, and subsidies in response to the energy crisis for select European countries between September 2021 and July 2022. All figures in U.S. dollars.

CountryAllocated Funding Percentage of GDPHousehold Energy Spending,
Average Percentage
🇩🇪 Germany$60.2B1.7%9.9%
🇮🇹 Italy$49.5B2.8%10.3%
🇫🇷 France$44.7B1.8%8.5%
🇬🇧 U.K.$37.9B1.4%11.3%
🇪🇸 Spain$27.3B2.3%8.9%
🇦🇹 Austria$9.1B2.3%8.9%
🇵🇱 Poland$7.6B1.3%12.9%
🇬🇷 Greece$6.8B3.7%9.9%
🇳🇱 Netherlands$6.2B0.7%8.6%
🇨🇿 Czech Republic$5.9B2.5%16.1%
🇧🇪 Belgium$4.1B0.8%8.2%
🇷🇴 Romania$3.8B1.6%12.5%
🇱🇹 Lithuania$2.0B3.6%10.0%
🇸🇪 Sweden$1.9B0.4%9.2%
🇫🇮 Finland$1.2B0.5%6.1%
🇸🇰 Slovakia$1.0B1.0%14.0%
🇮🇪 Ireland$1.0B0.2%9.2%
🇧🇬 Bulgaria$0.8B1.2%11.2%
🇱🇺 Luxembourg$0.8B1.1%n/a
🇭🇷 Croatia$0.6B1.1%14.3%
🇱🇻 Lativia$0.5B1.4%11.6%
🇩🇰 Denmark$0.5B0.1%8.2%
🇸🇮 Slovenia$0.3B0.5%10.4%
🇲🇹 Malta$0.2B1.4%n/a
🇪🇪 Estonia$0.2B0.8%10.9%
🇨🇾 Cyprus$0.1B0.7%n/a

Source: Bruegel, IMF. Euro and pound sterling exchange rates to U.S. dollar as of August 25, 2022.

Germany is spending over $60 billion to combat rising energy prices. Key measures include a $300 one-off energy allowance for workers, in addition to $147 million in funding for low-income families. Still, energy costs are forecasted to increase by an additional $500 this year for households.

In Italy, workers and pensioners will receive a $200 cost of living bonus. Additional measures, such as tax credits for industries with high energy usage were introduced, including a $800 million fund for the automotive sector.

With energy bills predicted to increase three-fold over the winter, households in the U.K. will receive a $477 subsidy in the winter to help cover electricity costs.

Meanwhile, many Eastern European countries—whose households spend a higher percentage of their income on energy costs— are spending more on the energy crisis as a percentage of GDP. Greece is spending the highest, at 3.7% of GDP.

Utility Bailouts

Energy crisis spending is also extending to massive utility bailouts.

Uniper, a German utility firm, received $15 billion in support, with the government acquiring a 30% stake in the company. It is one of the largest bailouts in the country’s history. Since the initial bailout, Uniper has requested an additional $4 billion in funding.

Not only that, Wien Energie, Austria’s largest energy company, received a €2 billion line of credit as electricity prices have skyrocketed.

Deepening Crisis

Is this the tip of the iceberg? To offset the impact of high gas prices, European ministers are discussing even more tools throughout September in response to a threatening energy crisis.

To reign in the impact of high gas prices on the price of power, European leaders are considering a price ceiling on Russian gas imports and temporary price caps on gas used for generating electricity, among others.

Price caps on renewables and nuclear were also suggested.

Given the depth of the situation, the chief executive of Shell said that the energy crisis in Europe would extend beyond this winter, if not for several years.

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