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Updated Aug 13, 2026 · 15:35
Business World News Updated Aug 13, 2026

US Natural Gas Production to Hit Record 122.5 Bcf/d in 2026, EIA Says

The US Energy Information Administration projects record marketed natural gas production of 122.5 billion cubic feet per day in 2026, a 3.4% increase over the 2025 record. Growth is concentrated in the Permian region, where high crude oil prices above $84 per barrel boost associated gas output, and the Haynesville region, which benefits from proximity to LNG export terminals. First-half 2026 production averaged 121.3 Bcf/d, already 4% above the same period last year. Henry Hub spot prices are forecast to average $3.44 per million British thermal units in 2026, keeping Haynesville drilling economical.

US natural gas production set for record 122.5 Bcf/d in 2026, up 3.4%: EIA

Washington DC, August 13

US marketed natural gas production is projected to rise to a record 122.5 billion cubic feet per day in 2026, about 3.4 per cent higher than the previous record set last year, driven largely by higher output from the Permian and Haynesville regions, according to the US Energy Information Administration.

The latest projection, contained in the EIA's August 2026 Short-Term Energy Outlook, compares with marketed natural gas production of 118.5 Bcf/d in 2025.

"We forecast U.S. marketed natural gas production will average 122.5 billion cubic feet per day (Bcf/d) in 2026, surpassing the previous record of 118.5 Bcf/d set in 2025," the EIA said. The increase amounts to 4 Bcf/d, or about 3.4 per cent, over the 2025 level.

Production has already recorded strong growth in the first half of the year. Marketed natural gas output averaged 121.3 Bcf/d during January-June 2026, up 4 per cent, or 4.6 Bcf/d, from the corresponding period last year.

"Most of this expansion is concentrated in the Permian region in Texas and New Mexico and the Haynesville region in Louisiana and Texas," the EIA said.

The agency expects Permian gas production to average 29.2 Bcf/d in 2026, an increase of 6 per cent from 2025. Natural gas production in the region is largely associated gas, which is produced alongside crude oil.

EIA said higher crude oil prices have supported drilling activity in the Permian. West Texas Intermediate crude oil prices averaged USD 84 per barrel through July 2026, up from an average of USD 65 per barrel in 2025.

"The relatively high prices support oil-directed drilling in the Permian region and the resulting rise in both crude oil and natural gas production," the agency said.

Haynesville is also expected to make a significant contribution to the increase. Natural gas production in the region rose by 1.1 Bcf/d, or 7 per cent, in the first half of 2026 compared with the same period last year. For the full year, EIA forecasts Haynesville production to increase by 9 per cent, or 1.3 Bcf/d.

Unlike the Permian, where drilling is primarily targeted at crude oil, operators in Haynesville largely drill for natural gas, making production more dependent on gas prices.

EIA forecasts the Henry Hub spot natural gas price to average USD 3.44 per million British thermal units in 2026, down 2 per cent from its previous level.

"At this forecast price, drilling in the Haynesville remains economical despite the relatively deeper wells and more expensive development costs," EIA said.

The agency added that Haynesville's proximity to liquefied natural gas export terminals and major industrial gas consumers along the US Gulf Coast is also encouraging drilling activity in the region.

— ANI

Reader Comments

Priya S

The Permian and Haynesville regions seem to be doing great. But the article mentions higher crude oil prices around $84/barrel. That's concerning for India since we import most of our crude. Gas price may drop, but oil is still a burden on our economy.

Sarah B

Great news for American energy independence, but I wonder how this will affect global emissions targets. As an environmentalist, I hope they're also focusing on renewables and not just ramping up fossil fuel production.

Vikram M

India should look at this as an opportunity to diversify our LNG imports. With US production at record highs, we can negotiate better long-term contracts. Smart diplomacy and energy policy needed now more than ever.

James A

The Haynesville region is really stepping up, thanks to LNG demand. But with Henry Hub forecasted at $3.44, is it really sustainable long-term? The shale industry needs higher prices to keep drilling. Just my two cents.

Rohit P

Every time US gas production rises, we hope for cheaper LNG. But shipping costs and infrastructure bottlenecks in India often eat into the benefits. Still, good to see global supply expanding. Lower prices can help our fertilizer and power sectors.

Michael C

It's remarkable how the Perm

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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