US natural gas production set a new record in 2021

US natural gas production hit an annual record in 2021up 3.5% from 2020, according to natural gas annual report Recently Posted by US Energy Information Administration (EIA).

In 2020, production decreased due to reduced economic activity during the COVID-19 pandemic. In 2021, dry natural gas production exceeded the previous record set in 2019, and the Energy Information Administration’s short-term energy forecast predicts that production will continue to grow through 2023.

Driven by rising natural gas prices, US production in the largest resource pools has been growing. Texas and Pennsylvania have paid for this increase. Production grew by nearly 1.5 billion cubic feet per day (Bcf/d) in both states between 2020 and 2021.

Texas is intertwined with the Permian Basin and Heinsville Basin, which were major sources of production growth in 2021. Likewise, Pennsylvania is intertwined with the Appalachian Basin, which now accounts for nearly a third of all dry natural gas production in the United States.

Historically, the Gulf of Mexico has been an important region for natural gas production, accounting for 9% of dry natural gas production in 2010. However, natural gas production in the Gulf of Mexico has tended to decline in recent years due to:

• Old wells with low productivity
• Focus on Petroleum Development
• The high cost and complexity of subsea production
• Hurricane exposure

The Gulf of Mexico contributed only 2% of dry natural gas production in the United States in 2021. We expect the decline in production in the region to continue in the coming years, offset in part by new projects.

Net natural gas imports accounted for 11% of total supply as recently as 2010, but none of total supply in 2021. Natural gas imports declined between 2007 and around 2017, and have remained at similarly low levels since then.

The United States is a net exporter (exports exceed imports) of natural gas. Natural gas exports have been increasing every year since 2016, driven by LNG exports, which hit a record high in 2021.