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Natural Gas Production Heads for New US Record as Permian Output Grows

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Aug 13, 2026
  • U.S. marketed natural gas production is projected at 122.5 Bcf per day.
  • Permian natural gas output is expected to rise 6%.
  • Haynesville production is also expanding.
  • Associated gas is adding supply alongside oil drilling.
  • Pipeline capacity remains central to delivered natural gas availability.

U.S. natural gas production is moving toward a new record as output expands across two of the country's main producing regions. Marketed production is projected to average 122.5 billion cubic feet per day, exceeding the previous record of 118.5 billion cubic feet per day. Production during the first half averaged 121.3 billion cubic feet per day, about 4% above the comparable prior-year period.

The Permian region is providing a large share of the additional supply. Natural gas output from the basin is projected to average 29.2 billion cubic feet per day, representing a 6% increase. Much of this gas is produced alongside crude oil, which means drilling aimed at oil production can continue adding gas volumes even when producers are not primarily targeting natural gas.

Gas-to-oil ratios in producing wells are also rising as reservoir pressure declines. Natural gas becomes easier to produce relative to oil as wells mature, adding further volumes from existing development. For procurement teams, this production pattern can provide additional supply without requiring an equivalent increase in dedicated gas drilling.

Haynesville production is expanding as well. Output during the first half increased by 1.1 billion cubic feet per day, or 7%, and annual production is expected to rise by 1.3 billion cubic feet per day. Its proximity to Gulf Coast industrial consumers and LNG infrastructure makes the region an important source for growing demand.

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Physical availability still depends on pipeline infrastructure. Producing more gas at the wellhead does not guarantee that every consuming market receives more supply. Permian takeaway constraints have limited the movement of gas from producing areas, making pipeline additions and utilisation central to regional purchasing conditions.

Industrial buyers can use the higher production outlook when reviewing contracted volumes and supplier exposure. Chemical plants, fertilizer producers, power generators and other large users may benefit from a broader production base, but delivered supply will still depend on pipeline access, regional demand and transportation commitments.

Companies sourcing large volumes should compare suppliers based on delivery capability rather than production growth alone. Firm transportation rights, storage access and connections to more than one producing region can provide better protection when local infrastructure becomes constrained.

The expanding production base gives buyers more physical supply to work with, but infrastructure will determine how effectively those volumes reach consuming markets.

About the Author

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Ayushi Raj Prabhakar

Business Insights Analyst

Helping procurement and sourcing teams make sense of commodity markets across flavours and fragrances, food and beverages, and agriculture - with a focus on price trends, supply dynamics, and the real factors that move these markets.

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