The EIA sees U.S. natural gas production increasing by 5% in 2023 and by 2% the following year, with the Permian Basin driving a majority of that growth.
U.S. natural gas production will increase by 5% or 5 billion cubic feet per day in 2023, and by 2% next year, with growth primarily in the Permian basin region and driven by high oil prices and improved well-level productivity, the Energy Information Administration EIA forecast on Wednesday. The EIA estimates that Permian region natural gas production alone will increase by 11% in 2023 and 6% in 2024.
The agency also noted that despite the fact that the number of rigs deployed in the Permian region had decreased this year, natural gas production has increased. There are approximately 30 fewer rigs operating in the Permian now, compared to the beginning of this year, yet production is increasing. The EIA is expecting Permian region natural gas to see further production increases this year and next, as prices of West Texas Intermediate WTI remain high, incentivizing producers.