📈 U.S. Associated Natural Gas Production Climbs 6% in 2024

Tony Zelinski
2 minutes ago
2 min read

The U.S. Energy Information Administration (EIA) reports that associated natural gas production rose by 6% in 2024, reflecting the continued strength of oil-directed drilling across major shale regions.

Key Highlights

Production Growth: Associated natural gas averaged 18.5 billion cubic feet per day (Bcf/d) in 2024, up from 17.5 Bcf/d in 2023.
Regional Drivers:
- Permian Basin led the surge, increasing 8% to 12.5 Bcf/d, accounting for nearly half of the region’s total gas output.
- Bakken saw 67% of its gas production come from associated gas, producing 2.3 Bcf/d.
- Eagle Ford contributed 1.8 Bcf/d.
Crude Oil Link: U.S. crude oil production in the Permian rose by 377,000 barrels per day, averaging 6.3 million b/d, which directly fueled the associated gas increase.
Market Impact: Associated gas now represents 37% of total natural gas production in these five regions (Permian, Bakken, Eagle Ford, Anadarko, Niobrara).

Why It Matters

Associated natural gas—produced alongside oil—contains valuable natural gas plant liquids (NGPLs) such as ethane, butane, and propane. The steady growth in 2024 has already led to record ethane production, a critical feedstock for plastics, fibers, and petrochemicals.

This trend underscores the dual impact of oil drilling: not only boosting crude supply but also expanding natural gas availability. For industries reliant on NGPLs, this represents both opportunity and challenge—balancing abundant feedstock with infrastructure and environmental considerations.

Looking Ahead

With West Texas Intermediate (WTI) crude averaging $77 per barrel in 2024, oil-directed drilling remains economically viable.

If this momentum continues, associated gas will play an even larger role in shaping U.S. energy markets, influencing everything from petrochemical supply chains to climate policy debates.