EIAs latest Short-Term Energy Outlook projects that U.S. domestic dry natural gas production in 2005 will decline by about 4 percent, due in large part to the major disruptions to infrastructure in the Gulf of Mexico from both Hurricanes Katrina and Rita. Dry gas production is projected to increase by 4.7 percent in 2006. EIA expects net imports of natural gas (pipeline and liquefied natural gas - LNG) to increase only slightly in 2005 (0.1 percent over 2004) but to increase by over 12 percent in 2006. Imports of LNG appear to have exhibited little change through the first half of 2005 compared to year-ago levels. High natural gas prices in other world markets during the first three quarters of 2005 have served to attract available supplies of LNG that might otherwise have been directed to the United States, although fourth quarter imports are estimated to increase in response to high U.S. prices. Currently, total LNG imports for 2005 are projected to be approximately 650 Bcf in 2005 and just over 1,000 Bcf in 2006, compared to 650 Bcf in 2004.
In the near- to medium-term, EIA expects increases in natural gas production to come mainly from lower 48 sources. Increased use of cost-saving technologies is expected to result in continuing large natural gas finds, including in the deep waters of the Gulf of Mexico but also in onshore fields. In the longer term, Alaskas North Slope fields represent a large potential natural gas source, with an estimated 30-35 Tcf of natural gas resources. Getting the gas to market is the main challenge. One possibility is a $20 billion natural gas pipeline running 3,500 miles from the North Slope along the Alaska Highway into Alberta and on to markets in the U.S. Midwest. In October 2004, Congress promised to cover 80 percent of the projects cost if it were to go bankrupt. Still, the project is considered risky by major energy companies, and it remains uncertain whether or not the project will move ahead.

EIA estimates that working gas in storage as of November 4, 2005 was 3,229 Bcf, which is 123 Bcf (4 percent) above the 5-year average inventory level. Although natural gas storage remains above the 5-year average, the double blows of Hurricanes Katrina and Rita reduced the peak storage achievable over the remainder of the injection season from what was expected previously. Expected working gas in storage at the end of the fourth quarter is expected to be about 2.5 Tcf, 200 Bcf below year-ago levels and about 50 Bcf above the 5-year average.
As of 2003, top natural-gas-producing states (in descending order) included Texas, New Mexico, Oklahoma, Wyoming, Louisiana, Colorado, Alaska, Kansas, Alabama and California.

From 1990 through 2004, according to EIA, natural gas consumption in the United States increased by about 16 percent. EIAs latest Short-Term Energy Oulook projects that total natural gas demand will fall by 0.8 percent in 2005, due mainly to higher prices and Hurricanes Katrina and Rita, In 2006, natural gas consumption is expected to recover by 2.8 percent due to an assumed return to normal weather. In addition, a rebound in industrial activity is expected to increase natural gas demand in that sector by about 6 percent over 2005 levels. Natural gas is consumed in the United States mainly in the industrial (38 percent), electric power (24 percent), residential (22 percent), and commercial (13 percent) sectors.
U.S. natural gas consumption and imports are expected to expand substantially in coming decades, with the fastest volumetric growth resulting from additional natural-gas-fired electric power plants. Increased U.S. natural gas consumption will require significant investments in new pipelines and other natural gas infrastructure. New LNG terminals are projected to start coming into operation in 2006, and net LNG imports are expected to increase to 6.4 trillion cubic feet in 2025. Net imports of natural gas from Canada are projected to decline from 3.0 trillion cubic feet in 2005 to 2.5 trillion cubic feet in 2009, rise again to 3.0 trillion cubic feet in 2015, and then decline to 2.5 trillion cubic feet in 2025.