The status quo regulatory regime must go Image By Amy Andryszak This is a lightly edited excerpt of testimony recently provided to the U.S. House of Representatives’ Committee on Energy and Commerce’s Energy Subcommittee during the hearing “Assuring Abundant, Reliable American Energy to Power Innovation.” U.S. electricity demand is projected to continue growing due to electrification, re-shoring of manufacturing and an expansion of AI and data centers. Estimates vary for how many additional gigawatts (GW) of power generation capacity will be needed, but the U.S. Energy Information Administration’s (EIA) recent Annual Energy Outlook projected that by 2050 American electricity net generation will rise by more than 45 percent. To put this into perspective, since 2001 domestic electricity net generation increased by only 15 percent. This is a paradigm shift for the electric power sector, and to meet this surge in demand, we do not have the luxury of relying on only a select few technologies. All forms of energy will be needed. The role of natural gas In addition to heating, cooking and manufacturing usages, natural gas is the largest national electricity fuel source currently providing 43% of the electricity generated in this country. According to EIA, in 2024, U.S. natural gas consumption averaged a record 90.3 billion cubic feet per day (Bcf/d) and set new winter and summer monthly records in January and July. Overall, U.S. consumption in 2024 increased one percent (0.9 Bcf/d) from 2023. In January 2024, natural gas consumption was up 12 percent (12.5 Bcf/d) compared with January 2023 consumption, and in July 2024, consumption increased by three percent (2.5 Bcf/d) compared with July 2023. Demand will continue to grow. The EIA’s latest projections show natural gas consumption will be higher in 2025 and 2026 compared to the already record levels in 2024. Our need for new infrastructure To meet this growing demand, our country will need significant new energy infrastructure of all kinds, from pipelines to power lines. Rystad Energy calculated that utilities are planning a staggering 17.5 GW of new natural gas capacity in the coming years, the highest level since 2017. A Goldman Sachs analysis shows an additional 47 GW of electric generation capacity will be required to support data center power demand growth by 2030, and it estimates 60 percent will come from gas and 40 percent will be derived from renewables. That equates to an additional 3.3 Bcf/d of natural gas pipeline capacity to meet the demand growth from data centers by 2030. Calculations by S&P Global suggest additional gas demand could be as high as 6 Bcf/d by 2030. Reform outdated regulatory systems It is self-evident that we will not meet this scale of growing demand for natural gas without adding new pipeline and storage capacity, and the status quo regulatory regime that discourages investment in infrastructure will not get us there. Pipelines are the safest, cleanest and most reliable transportation option for delivering energy. To ensure necessary pipeline infrastructure to transport North America’s abundant natural gas safely, affordably and reliably can be built, Congress must enact comprehensive statutory reforms to create a durable system for permitting energy infrastructure. Statutory changes to the National Environmental Policy Act (NEPA), the Clean Water Act (CWA) and judicial review reforms are necessary. Such reforms, along with adequate staffing and expertise across federal agencies responsible for the permitting and oversight of energy infrastructure, will allow interstate natural gas pipelines and storage facilities, as well as other energy infrastructure, to be built to meet our nation’s demand. Read Andryszak’s full testimony here. Amy Andryszak is president and CEO of the Interstate Natural Gas Association of America (INGAA), a trade organization representing the majority of interstate natural gas transmission pipeline companies in the U.S. and Canada. *The opinions expressed in this column are those of the author and do not necessarily reflect the views of EnergyPlatform.News.
