KEEPING WARM IN CALIFORNI
Some California residents saw their natural gas bill increase 146% in recent months. Today, we look at the state’s reliance on natural gas and if there’s relief in sight during a cold winter.
Californians issues with gas prices aren't just at the pump. Californians use natural gas to heat their homes, cook food, charge electric vehicles at night and make electricity. The cold spells this winter brought up demand for natural gas heating, which 70% of California homes require. Capacity limitations in a pipeline flowing from Texas to the west put additional constraints on supply because the state imports about 90%-95% of its natural gas.
The map to the right shows the interstate pipelines for natural gas. Southern California's supply comes from as far away as Texas and Louisiana. Gas can flow through the pipeline at about 20-30 mph.
How much gas do we use?
California invests in renewable energy. The state produces the third-most (in 2022) megawatt hours of renewable energy behind Texas and Washington. But it is a glutton for the gas line as well. In 2021, U.S. total consumption of natural gas was about 30.66 trillion cubic feet. The five states that consumed the most natural gas in 2021 by amount and percentage share of total U.S. natural gas consumption were:
1. Texas: 4.67 tcf — 15.2%
2. California: 2.09 tcf — 6.8%
3. Pennsylvania: 1.81 tcf — 5.9%
4. Louisiana: 1.75 tcf — 5.7%
5. Florida: 1.54 tcf — 5.0%
California natural gas total consumption
The state's consumption has been consistent from 1997 to 2021.
In million cubic feet 3
Production decline
California produced about 500,000 cubic feet of natural gas in the 1980s. It has steadily been declining in production. It dropped to less than 200,000 cubic feet in 2018 and was 133,136 cubic feet in 2021, which was about 7% of the state's consumption needs.
The state's Geologic Energy Management Division, known as CalGEM, rejected 109 fracking permits in 2021 after Gov. Gavin Newsom's 2024 climate change deadline to end fracking in the state. Most of the permits were from Bakersfield-based Aera Energy. 0
Sept. 2020
Storage capacity issues
During the first half of 2022, natural gas pipeline deliveries from the Pacific Northwest into Northern California decreased by 5% compared with the first half of 2021, resulting in increased withdrawals from storage to meet demand. Natural gas deliveries from the Southwest into Southern California declined by 3%, according to data from PointLogic.
The Aliso Canyon storage facility in northwest San Fernando Valley is the largest of the state's 14 storage facilities, with a capacity of 86 billion cubic feet. After the disaster at the facility in 2015, its storage level was limited to 34 billion cubic feet. In November 2021, the CPUC decided to allow its working gas capacity, which supplies most of Los Angeles, to increase to 41 bcf.
Issues with the supply lines from out of state have had a greater impact on the state's demand for natural gas.
Relief in sight?
Californians stung by high energy bills can expect to receive some relief after the CPUC voted Thursday to fast-track credits from utilities using state climate funds. Depending on their utility, customers will see $90-$120 deducted from an upcoming energy bill.