BAKU, Azerbaijan, June 14. The US Energy Information Administration (EIA) forecasts a 1-percent decrease in US marketed natural gas production for 2024, driven by significant declines in the Haynesville and Appalachia regions, Trend reports.
The agency attributes this drop to reduced development and production activities prompted by low natural gas prices.
According to the EIA, US marketed natural gas production averaged 110 billion cubic feet per day (Bcf/d) in May, reflecting a 3-percent decline from 1Q24. In the Haynesville region, production plummeted by 15 percent in May compared to 1Q24, while the Appalachia region saw a 3-percent decrease. These reductions are primarily due to record-low natural gas prices in early 2024, which led producers in these regions to scale back production until market conditions improve.
Conversely, natural gas production in the Permian region, which is largely associated with oil wells, remained relatively stable in May compared to 1Q24. This stability is linked to the ongoing growth in crude oil production in the Permian, which continues to drive associated natural gas output.
Looking ahead to 2025, the EIA expects a 2-percent increase in US marketed natural gas production, with growth anticipated in most regions within the Lower 48 states.
This projected rise is attributed to a combination of higher natural gas prices, incentivizing more drilling in the gas-producing Appalachia and Haynesville regions, and increased associated natural gas production in the Permian region. Additionally, expansions in pipeline takeaway capacity in the Northeast and Permian regions are expected to support this production increase.