EIA examines decrease in natural gas production between 2019-2020
The Energy Information Administration (EIA) determined domestic natural gas production declined in 2020 from 2019 due to decreased drilling activity related to low natural gas and oil prices.
Per the EIA analysis, production measured by gross withdrawals averaged 111.2 billion cubic feet per day (Bcf/d) in 2020, down 0.9 billion Bcf/d from 2019. The 2019 record-high increase in natural gas production led to higher volumes of natural gas in storage and lower natural gas prices.
The EIA attributes warmer-than-average weather along with the effects of the responses to COVID-19 beginning in March 2020 as factors driving down natural gas demand and further price reductions.
According to the EIA, the Appalachian region serves as the nation’s largest natural gas-producing region while natural gas production from the Marcellus and Utica / Point Pleasant shales of Ohio, West Virginia, and Pennsylvania continued to experience growth despite low regional natural gas spot prices.
Natural gas production from Ohio, West Virginia, and Pennsylvania increased from 32.1 Bcf/d in 2019 to 33.6 Bcf/d in 2020. Texas serves as the largest natural-gas producing state while acknowledging natural gas production in the state decreased from 28.4 Bcf/d in 2019 to 28.1 Bcf/d in 2020.
