How does natural gas affect the economy?

Rich in fossil fuel resources, regions such as the Middle East, Russia, Australia, and Canada, rely heavily on the sale of oil and gas for a sizeable portion of their economic output. Depending on the nation, these governments also depend heavily on resource royalties, which they receive from the production of natural gas and oil in order to fund public services such as hospitals, schools, and other government facilities. Major employers in these regions are the companies that produce natural gas and oil, and they also pay corporate taxes and royalties to the governments of the respective countries.

Natural gas imports obviously have an impact on the economies of the countries that import it, but they also typically contribute to economic growth. For instance, in North America and Europe, natural gas is largely used to power electric power plants, heat homes in the winter, and produce cement.

Natural gas affects the economy by contributing to energy production, influencing prices in various sectors, and impacting employment within the energy industry.