The U.S. natural gas industry served up $111 billion in total revenues for 2010--and some leading analytical firms says that’s peanuts compared to what natural gas providers will be making in the coming years. What’s driving industry growth, and what players are benefiting most?

Fresh data on natural gas comes at a precipitous time. Last week, ExxonMobil (Stock Quote: XOM) chief executive Rex W. Tillerson testified in front of a key Congressional budget panel, adamantly defending $21 billion in U.S. tax breaks for the oil and gas industry that Democrats are seeking to recapture to reduce the federal deficit.

Some politicians, especially U.S. Senate Democrats, want to raise oil and gas taxes by $2 billion annually. Oil and gas executives are standing in line in Washington to warn Congress that any hike in oil and gas taxes will trigger higher costs for energy companies. Tillerson, for example, told the Congressional panel that tax hikes would be "counterproductive."

Loosely translated, that means the costs oil companies incur from any tax hikes will be passed along to already anxious consumers.

Congress probably doesn’t have the votes to stand up to big oil companies. And to be fair, nobody on Capitol Hill is talking about taking tax breaks away from consumer goods manufacturers, auto companies, or, God forbid, banks and insurance companies.

That said, $2 billion is a drop in the bucket when you take a good look at what energy companies are looking in potential profits, particularly on the natural gas front.

Weighing in first on that front is the Dublin, Ireland-based business analytical firm Research and Markets. The firm lays out the numbers on natural gas revenues, particularly concerning market size data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.

Per Research and Markets, here are some of the more interesting conclusions drawn from the study: 1) The U.S. natural gas production industry had total revenues of $111.3 billion in 2010, representing a compound annual rate of change (CARC) of -7.3% for the period spanning 2006-2010. 2) Industry production volumes increased with a compound annual growth rate (CAGR) of 3.2% between 2006 and 2010, to reach a total of 755.6 million cubic meters in 2010. 3) The performance of the industry is forecast to accelerate, with an anticipated CAGR of 2.6% for the five-year period from 2010-2015, which is expected to drive the industry to a value of $126.3 billion by the end of 2015.

Then there’s a new report from the American Gas Association that reinforces the notion that natural gas supplies are healthy and can accommodate increased demand.

According to the Washington, D.C.-based group, new data shows that the United States possesses an undiscovered natural gas resource potential of 1,898 trillion cubic feet (Tcf).

The AGA calls it the highest resource evaluation in 46 years. "This report confirms once again our great optimism regarding natural gas supply in America," notes Dave McCurdy, president and chief executive of AGA. "Abundant, diverse supply has helped to stabilize natural gas prices and to ensure reliability for natural gas customers even if sudden shifts in demand occur--weather induced or otherwise. This is welcome news for consumers across the nation."

It's also good news for energy companies. Demand for natural gas supply has rarely been higher or stronger. Residential natural gas demand is at its highest point since 2003, and commercial demand is at a 14-year high, as well.

The Des Plaines, Il.-based Gas Technology Institute reinforces that point with a fresh study (released on April 28, 2011) that shows 2010 was a year with "record demand" for natural gas-- and that the next decade should be a period of "robust growth."

"The economic and clean energy benefits of natural gas are helping to drive market demand," says David Carroll, president and chief executive of GTI. "The outlook for natural gas demand remains robust, thanks to the remarkable expansion of natural gas supplies in recent years and very attractive end user prices. We believe that gas demand will likely reach 24 to 26 trillion cubic feet by 2020, while also helping to reduce U.S. carbon emissions."

Carroll says that future growth in demand will be led by the power generation sector, "where natural gas is poised to help offset an expected wave of older coal-fired power plant retirements across the country." He adds that power generation demand in 2010 was at an all-time high, 40% higher than demand in 2000, and that industrial demand also bounced back sharply from pre-recession levels.

Pricing levels for natural gas are favorable to business and industries, and are a huge driver of growth, the GTI report adds.

"New power generation gas demand will be complemented by a continuing industrial rebound," says William Liss, managing director of GTI's End Use Solutions. "Low natural gas prices are helping to expand domestic manufacturing--particularly in the chemical, petrochemical, and food production and processing segments."

According to the New York Mercantile Exchange, natural gas price contracts have fallen 9% during the past week, falling from $4.577 per MMbtu to $4.181. With prices low, and demand high, it’s no wonder the outlook for natural gas is a positive one.

Goodness knows, oil and gas industry executives have a lot on their plates these days. But on the natural gas side, it’s smooth sailing, for the short- and for the long-term.

Contact the author, Brian O’Connell, at boconnell@hartenergy.com.