U.S. associated natural gas production increased 6% in 2024
Note: For consistency, the various state pressure bases used to measure natural gas volumes have been converted to the federal pressure base of 14.73 pounds per square inch absolute (psia) and 60°F.
U.S. production of associated dissolved natural gas, also known as associated natural gas, increased by 6% last year, mirroring the growth in crude oil production from the Permian region. Associated natural gas production averaged 18.5 billion cubic feet per day (Bcf/d) in 2024, according to data from Enverus DrillingInfo.
Associated natural gas, which is natural gas produced by wells that predominantly produce oil, comes mainly from five major oil producing regions in the United States—the Permian, Bakken, Eagle Ford, Anadarko, and Niobrara. In 2024, associated natural gas production in these regions averaged 18.2 Bcf/d, an increase of 1.0 Bcf/d from 2023. Associated natural gas production accounted for 37% of the total natural gas production from these regions in 2023 and 2024.
We define oil wells as those with a gas-to-oil ratio (GOR) of less than or equal to 6.0 thousand cubic feet of natural gas per barrel of oil produced (Mcf/b). We classify wells with a GOR of more than 6.0 Mcf/b as natural gas wells.
Associated natural gas production in the Permian region in oil-rich western Texas and southeastern New Mexico accounted for most of the growth in 2024, increasing 8% to 12.5 Bcf/d and accounting for 47% of total Permian natural gas production. Supported by an average West Texas Intermediate (WTI) crude oil price of $77 per barrel (b), oil-directed drilling in the Permian increased in 2024. Permian region crude oil production accounted for almost all U.S. growth in 2024, rising by 377,000 barrels per day (b/d) compared with 2023 to average 6.3 million b/d, which led to the increase in natural gas production.
In 2024, 67% of the Bakken’s natural gas production came from associated gas, the largest share in the five producing regions. The Bakken produced 2.3 Bcf/d of associated gas, and the Eagle Ford produced 1.8 Bcf/d of associated gas.
Note: Major regions include Permian, Eagle Ford, Bakken, Niobrara, and Anadarko.
Associated natural gas, often termed wet gas, contains valuable natural gas plant liquids (NGPLs) such as ethane, butane, and propane. These liquids must be separated and purified at gas plants before being sent to market. The generally persistent growth in associated natural gas production through 2024 has led to record ethane production, a crucial feedstock for the plastics, fibers, and petrochemical industries.
Principal contributor: Naser Ameen
Tags: production/supply, natural gas, Permian