Eagle Ford natural gas production increases as crude oil production holds steady
In our April Short-Term Energy Outlook, we forecast U.S. annual natural gas production from the Eagle Ford region in southwest Texas will grow from 6.8 billion cubic feet per day (Bcf/d) in 2024 to 7.0 Bcf/d in 2026. The increase in natural gas production comes as natural gas prices rise and demand for liquefied natural gas exports grows. Oil production in the Eagle Ford, on the other hand, has hovered around 1.1 million barrels per day (b/d) since 2020, and we forecast it will remain about the same through 2026.
This increase in natural gas production with stable oil production in the Eagle Ford region is a result of increasing gas-oil ratios. As more oil and natural gas are produced, pressure within the reservoir declines, allowing more natural gas relative to oil to be produced.
The Eagle Ford region contains many plays, the largest of which are the Eagle Ford play and the Austin Chalk play. Development in the Austin Chalk play in Texas began nearly a century ago, and the play has been undergoing a resurgence in drilling activity since 2014. Since 2014, oil production from the Austin Chalk play has nearly quadrupled, and natural gas production has increased by nearly 675%.
The Eagle Ford play makes up 73% (5.5 Bcf/d) of the region’s natural gas production and 86% (1.0 million b/d) of the region’s oil production. Since 2020, natural gas production from the play has grown by 10% (0.5 Bcf/d) while oil production has declined by 4% (46,000 b/d).
The Austin Chalk play makes up 23% (1.8 Bcf/d) of the region’s natural gas production and 11% (125,000 b/d) of the region’s oil production. It is the fastest-growing play in the region, with natural gas production nearly tripling (1.1 Bcf/d) and oil production growing by 26% (26,000 b/d) since 2020.
Principal contributors: Trinity Manning-Pickett, Troy Cook