EIA: Natural Gas Loses Heating Fuel Market Share to Power

SECAUCUS, NJ (DTN) – Natural gas remained the most common heating fuel used by U.S. households in 2024, but is losing market share against electricity, reflecting shifts in housing populations, technology and policies, the Energy Information Administration said on Friday (10/10)

Last year, natural gas was used by only 47% of U.S. households, a drop from 49% in 2010. In contrast, electricity’s usage surged becoming the main space heating source for 42% of U.S. homes last year – up sharply from 35% in 2010.

The shift toward electricity has been fueled by a continuing population move toward warmer states in the South and West, where electric heating is more common.

While natural gas faces pressure, other conventional heating fuels appear to be holding steady or growing. The data reveals that the overall shift is not a simple trade of gas for electricity; it also shows stable consumption of propane with a 5% market share and declining heating oil use, which dropped to 4% from 6% in the reference period..

This nuanced picture reflects evolving regional fuel choices and technology adoption. Older homes in the Northeast and Midwest continue to rely on heating oil and propane, particularly in the coldest regions of the country, where they remain more common than electric options.