By contrast, large scale use of natural gas for home heating began in the Midwest when pipelines were constructed from fields in Texas and Oklahoma. Eventually, large distribution lines fanned out to western and southern states. Logistical issues also have been a deterrent to residential gas use in the region. Long-distance transmission pipelines and underground municipal distribution systems are expensive to build and can be disruptive during construction in densely populated areas. Despite these obstacles, new pipelines are being built, and demand for natural gas is increasing in the Northeast, particularly for clean-burning electric power generation plants.
Natural gas is used mostly in industry, where it powers factories and fuels machines.
The electric power generation industry is now required, under new environmental regulations, to use more natural gas in environmentally sensitive regions of the country because of its clean-burning characteristics. However, the residential market represents the fastest growing segment of the natural gas market. Some 70 percent of all new homes are equipped with natural gas furnaces. In general, the cost of the gas is about a third to a half of the total bill. This helps explain why consumer bills do not double if gas prices double.