U.S. Energy Information Administration said last week marketed natural gas production in the lower 48 states will grow by five percent (5 billion cubic feet per day) this year and by two percent (1.8 Bcfd) in 2024 driven primarily by growth in Permian Basin. EIA said, “Most of the forecast growth comes from the Permian region, where we expect improved well-level productivity and higher crude oil prices will spur drilling activity that will increase natural gas production.”
Permian Basin accounts for a quarter of marketed natural gas production in the lower 48. The EIA added Oct. 18, “We forecast Permian region natural gas production will increase by 11 percent (2.2 Bcfd) in 2023 and six percent (1.4 Bcfd) in 2024. Most of the natural gas production in Permian is associated natural gas production from oil wells… Producers in the Permian region typically respond to changes in the crude oil price when planning their exploration and production activities, including when deciding whether to deploy drilling rigs or take rigs out of operation. Advances in hydraulic fracturing and horizontal drilling techniques have improved U.S. oil and natural gas well productivity… So far in 2023 natural gas production has increased in Permian region even as the rig count has decreased.”