U.S. Natural Gas Output Hits Record as Permian, Appalachia Lead Growth
U.S. natural gas production reached a record average of 118.5 billion cubic feet per day in 2025, driven largely by growth in the Permian, Appalachia and Haynesville regions, according to the U.S. Energy Information Administration.
(P&GJ) — U.S. marketed natural gas production reached a record level in 2025, averaging 118.5 billion cubic feet per day, according to the U.S. Energy Information Administration’s latest Natural Gas Monthly report.
Production rose by 5.3 billion cubic feet per day compared with 2024 levels. Three regions — Appalachia, the Permian Basin and the Haynesville shale — accounted for roughly 67% of total U.S. marketed gas output and 81% of the growth recorded during the year.
According to the EIA’s Short-Term Energy Outlook, production increases were supported by stronger gas prices and continued drilling activity across several major basins.
Henry Hub spot prices increased about 60% in 2025 to an average of $3.52 per million British thermal units (MMBtu), contributing to production growth across all regions.
The Appalachia region remained the largest source of natural gas production in the United States, accounting for 31% of total output, or 36.6 billion cubic feet per day.
Production growth in the region has slowed in recent years because of limited pipeline takeaway capacity to transport gas to demand markets. However, the June 2024 startup of the Mountain Valley Pipeline and higher gas prices supported additional growth.
Output in Appalachia increased by 1.1 billion cubic feet per day in 2025, compared with a rise of just 46 million cubic feet per day in 2024.
The Permian Basin in Texas and New Mexico accounted for 23% of total U.S. marketed gas production in 2025 and about half of the growth recorded during the year.
Permian gas production rose by 11%, or 2.7 billion cubic feet per day, reaching an average of 27.7 billion cubic feet per day. Much of the increase came from associated gas produced during oil drilling.
Although West Texas Intermediate crude prices fell from $77 per barrel in 2024 to $65 per barrel in 2025, prices remained strong enough to support oil-directed drilling across the basin.
The region’s rising gas-to-oil ratio has also contributed to the increase in associated gas production.
Meanwhile, output from the Haynesville shale in Louisiana and Texas averaged 14.9 billion cubic feet per day in 2025, up 4% from the previous year.
Higher Henry Hub prices helped sustain drilling activity in the region despite relatively deeper and more expensive well development costs compared with other basins.
The Haynesville formation typically ranges from 10,500 to 13,500 feet deep, compared with wells averaging 4,000 to 8,500 feet in Appalachia.
Operators remain attracted to the basin because of its proximity to U.S. Gulf Coast liquefied natural gas export terminals and large industrial gas consumers.