Natural gas production up 10 percent in 2018

Natural gas production in the United States is up 10 percent so far in 2018 compared to the previous year, according to the U.S. Energy Information Administration (EIA).

The growth has been primarily driven by higher production in the Appalachian Basin in the Northeast, the Permian Basin in western Texas and New Mexico, and the Haynesville Shale in Texas and Louisiana. In 2007, these three regions accounted for less than 15 percent of total U.S. natural gas production, but now they account for nearly 50 percent of total production. New drilling and completion techniques, including longer well laterals, have increased well productivity in these regions.

In stark contrast, the Gulf of Mexico’s share of natural gas production was 12 percent in 2007, but now it is down to just 3 percent. Additionally, the share of production in the rest of the United States has declined from 60 percent in 20017 to 28 percent today.

The Marcellus and Utica shale areas in the Appalachian basin accounted for about 29 percent of total production in July 2018.

In the Permian Basin, several new natural gas pipelines are planned or under construction that will help move more natural gas out of the region. EIA projects that production in the Permian Basin will account for about 11 percent of total U.S. gross production in July 2018.

Increasing production in the Haynesville region has been fueled by improving initial production rates and increasing rig counts. Combined, the Haynesville and the Permian regions accounted for nearly 20 percent of total U.S. natural gas production in 2017.