North Carolina was once again named the best state for business in America, according to CNBC’s recently released 2025 rankings. This is the Tarheel state’s sixth year in a row to rank among the top three states. To fuel North Carolina’s continued economic growth, the state needs an affordable and sustainable energy mix that includes natural gas.
Natural gas supports some of the state’s most integral industries, from agriculture to health care and transportation. It generates over 40% of the state’s electricity, and the demand is projected to rise with AI and manufacturing growth. Furthermore, the switch from coal to gas power generation has contributed to a 41% decline in CO2 emissions from the power sector since 2005. For the state to continue its economic momentum, an increased supply of natural gas is key.
Despite the economic growth it is fueling, there is still criticism. A recently released memo by three North Carolina State University professors paints an exceedingly negative and inaccurate picture of the role natural gas plays in the state.
The memo examines natural gas prices based on the highest possible projections from the North Carolina Utilities Commission’s Carbon Plan Docket and crafts a worst-case scenario to advocate against increased natural gas use. The authors base their conclusions around the removal of the interim carbon emissions reduction target that was enacted in 2021. SB 266, recently vetoed by Gov. Josh Stein and awaiting a potential veto override vote in the legislature, would remove this interim target.
Overall, the memo argues selective, erroneous, and inaccurate claims. The professors choose hypothetical points as to why natural gas prices could increase. They claim “limited pipeline capacity” constrains natural gas supply while failing to account for ongoing infrastructure projects in the state. There are currently two interstate projects and several intrastate projects ongoing that will increase supply.
They also erroneously claim that “rising U.S. liquified natural gas (LNG) exports” could impact supply and thus prices. Yet, despite record exports, Americans enjoy among the lowest residential natural gas prices in the world. Since the inception of the US LNG export industry, growth in natural gas production has outpaced LNG export growth nearly three-fold.
They also argue “supply disruption” from natural disasters such as hurricanes could negatively impact the market. In fact, the natural gas system was intentionally developed to help ensure reliability. During Hurricane Helene, most underground pipelines remained intact, helping deliver reliable service when it was needed most. Furthermore, natural disasters can impact any energy source, not just natural gas, as the memo falsely presents.
The memo’s driving critique is natural gas prices are volatile and may increase based on hypothetical, worst-case scenario projections. Yet this point wholly misses the mark and ignores the facts on the ground.
Regular fluctuations in energy demand and supply occur every day. Natural gas provides a reliable backbone to our state, helping families and businesses keep the lights on. Its ability to start up quickly to meet fluctuating demand also supports the state’s portfolio of renewable energy sources. North Carolina’s proximity to natural gas reserves in the Appalachian basins will ensure it continues to be an accessible and affordable resource.
Without question, North Carolina is leading the US in economic growth and development. The state continues to attract new businesses and residents. Lawmakers must focus on the facts of our growing economy and ensure access to natural gas, thus providing a reliable and sustainable energy mix to fuel North Carolina’s economic success for years to come.