U.S. natural gas production from shale and tight formations, which accounts for 79 percent of dry natural gas production, decreased slightly in the first nine months of 2024 compared with the same period in 2023. If this trend holds for the remainder of 2024, U.S. Energy Information Administration said it would mark the first annual decrease in U.S. shale gas production since it started collecting these data in 2000.
U.S. total shale gas production from January through September 2024 declined by about 1 percent to 81.2 billion cubic feet per day compared with the same period in 2023 while other U.S. dry natural gas production increased by about 6 percent to 22.1 Bcfd. Total U.S. dry natural gas production from January through September 2024 averaged 103.3 Bcfd – essentially flat compared with the same period in 2023.
This decline in shale gas production has been driven primarily by declines in production in Haynesville and Utica. From January through September 2024 shale gas production decreased by 12 percent (1.8 Bcfd) in Haynesville and by 10 percent (0.6 Bcfd) in Utica compared with the same period in 2023. At the same time, shale gas production in Permian Basin grew by 10 percent (1.6 Bcfd).
Natural gas produced in Permian Basin is primarily associated gas from oil wells where drilling and development is driven by the price of oil. Natural gas production in the Permian has increased this year along with increasing oil production.