Texas to Lead U.S. Natural Gas Production Growth

SEATTLE (Oil Monster):  The latest Short Term Energy Outlook (STEO) published by the U.S. Energy Information Administration (EIA) forecasts 5% growth in natural gas production in the Lower 48 states in 2023, followed by a 2% growth in 2024. The anticipated production growth will be mainly led by Texas region, EIA report said.

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According to EIA, most of Texas’s production comes from the Haynesville and Eagle Ford formations and multiple shale formations in the Permian Basin. The Permian region accounts for almost 25% of all marketed natural gas production in the Lower 48 states. The production from the region is predicted to surge higher by 6% in 2024, after rising by 11% in 2023.

The natural gas production in the Permian region has recorded significant increase in 2023, despite dip in rig count. As per data provided by Baker Hughes, there were 322 active rigs operating in the Permian region in September 2023, down by 31 when compared with the beginning of the year.

Until October 2023, a total of 10 gas fired power plants with electricity generating capacity of 6.8 GW had come online in the U.S. Before the end of the year, another six gas-fired power plants totalling 1.8 GW of capacity would have come online, thus bringing the total capacity addition to 8.6 GW.