EIA: US natgas production to reach record highs in 2026 while demand declines

The U.S. Energy Information Administration's Short-Term Energy Outlook released on Tuesday predicted that U.S. natural?gas production will reach a new record in 2026 while demand will decrease.

EIA predicted dry gas production would rise from a record of 107.7 billion cubic feet per day (bcfd), in 2025, to 110.6 bcfd by 2026?and 115.0 in 2027.

The agency also predicted that domestic gas consumption would fall from an all-time high of?91.9 billion cubic feet per day in 2025, to 91.2 billion cubic feet per day in 2026 and then rise to 94.4 billion cubic feet per day in 2027.

The EIA forecasts for April were 109.6 Bcfd in production and 90.6% for demand.

The EIA stated that "we expect production to continue rising through 2027 with natural gas production increasing as a result of higher crude oil prices."

EIA reported that the growth in gas production this year was primarily driven by 6% increases in both the Permian & Haynesville region. This includes a rise in the ratio of oil to gas from many wells located in the Permian area.

The Permian is the largest oil-producing shale formation in the United States. It is found in West Texas, eastern New Mexico, and in northwest Louisiana.

The agency predicted that average U.S. LNG exports will rise from 15.1 billion cubic feet per day (bcfd) in 2025, to 17.0 in 2026, and 18.2 in 2027.

The EIA predicted that U.S. coal output would fall from its two-year high of 528.4 millions short tons in 2020 to 518.6 in 2026, and to 487.1 in 2027. This is the lowest level since 1963.

EIA predicted that carbon dioxide emissions would "decline" from a high of 4.905 billion tons in 2025 to 4.797 in 2026, as oil, coal, and gas consumption decreases, before increasing slightly to 4.820 in 2027, as gas usage increases. (Reporting and editing by Daniel Wallis, Nick Zieminski and Scott DiSavino)

(source: Reuters)