U.S. Natural Gas Output Remained Flat During 2024: EIA

U.S. marketed natural gas production was largely flat during 2024, increasing by around 0.4 billion cubic feet per day (Bcf/d) compared with the previous year to average 113 Bcf/d, according to an April 17 report published by the U.S. Energy Information Administration. Natural gas production increased in the Permian and Appalachia region and declined in the Haynesville region.The Appalachia, Permian, and Haynesville regions account for around two-thirds of total U.S. natural gas production.

Appalachian production increased by 0.1 percent or 0.5 million cubic feet per day during 2024. The Appalachia region accounted for 31 percent or 35.6 Bcf/d of total U.S. marketed natural gas production during 2024. Production growth in the region has been slowing over the last few years due to restricted pipeline takeaway capacity to transport natural gas to demand markets. Low Henry Hub spot natural gas prices have been a key factor impacting production growth in the Appalachia region.

Permian production increased by 12 percent or 2.7 Bcf/d to average 25.4 Bcf/d during 2024. The Permian region in New Mexico and Texas accounted for 22 percent of total U.S. marketed natural gas production during 2024. The majority of Permian production is associated natural gas from oil wells. As a result, producers react to changes in the price of crude oil rather than the natural gas price when scheduling their production and exploration activities. The West Texas Intermediate (WTI) crude oil price needs to financially incentivise producers to drill in the Permian region. The WTI prices averaged $77 per barrel (b) during 2024, and the mean average breakeven price was $64/b in the Permian Delaware Basin and $62/b in the Permian Midland Basin, the two main basins in the region.

Haynesville production declined by 11 percent to average 14.6 Bcf/d during 2024. The production decline in the region can be attributed to decreased drilling activity by producers due to low natural gas prices.