- The U.S. Energy Information Administration (EIA) forecasts U.S. natural gas production will reach record highs of 120.8 Bcf/d in 2026 and 122.3 Bcf/d in 2027, with 69% of growth coming from the Appalachia, Haynesville and Permian regions.
- Haynesville is expected to post the largest gains, supported by rising gas prices projected to increase from $3.52/MMBtu in 2025 to $4.38/MMBtu in 2027, along with strong demand from LNG export terminals and Gulf Coast industries.
- Permian output growth will be driven largely by associated gas from oil drilling, with rising gas-to-oil ratios offsetting declining crude oil prices.
- Appalachian production is set for modest increases after the Federal Energy Regulatory Commission approved the Mountain Valley Pipeline, easing prior capacity constraints.
- Despite a temporary 3% weather-related production dip, the U.S. Department of Energy (DOE) says output has reached record levels, calling the current period an “unprecedented era of energy dominance.”
(Natural News)—The latest Short-Term Energy Outlook from the U.S. Energy Information Administration (EIA) has revealed that U.S. natural gas production is expected to climb to record levels over the next two years, driven largely by growth in three major shale regions.
According to the agency, marketed natural gas production will increase 2% to average 120.8 billion cubic feet per day (Bcf/d) in 2026, before rising again to a record 122.3 Bcf/d in 2027. About 69% of the projected growth through 2027 is expected to come from the Appalachia, Haynesville and Permian regions, which remain the backbone of U.S. natural gas output.
The Haynesville region in eastern Texas and Louisiana is forecast to post some of the strongest gains, with production rising by 1.2 Bcf/d in 2026 and another 1.6 Bcf/d in 2027. The EIA attributes that growth to relatively elevated natural gas prices, which are expected to climb from $3.52 per million British thermal units (MMBtu) in 2025 to $4.31/MMBtu in 2026 and $4.38/MMBtu in 2027.
Higher prices are expected to keep drilling economical despite deeper and more expensive well development. The region’s proximity to liquefied natural gas export terminals and industrial consumers along the Gulf Coast is also drawing investment.
In the Permian Basin of western Texas and southeastern New Mexico, production is projected to increase by 1.4 Bcf/d in 2026 and 0.6 Bcf/d in 2027. Much of the region’s gas output is “associated gas” produced during oil drilling. Although West Texas Intermediate crude prices are forecast to decline from $65 per barrel in 2025 to $53 in 2026 and $49 in 2027, rising gas-to-oil ratios are expected to offset lower oil-directed drilling activity and support continued natural gas growth.
The Appalachian Basin in the Northeast, which has accounted for roughly 32% of lower 48 production annually since 2016, is also expected to contribute modest gains. Growth in the region has slowed in recent years due to pipeline constraints. However, after the Federal Energy Regulatory Commission authorized the Mountain Valley Pipeline to begin operations in June 2024, additional takeaway capacity is expected to support production increases of 0.3 Bcf/d in 2026 and 0.5 Bcf/d in 2027.
DOE touts U.S. “energy dominance”
Natural gas, as per BrightU.AI’s Enoch, is a fossil fuel primarily composed of methane, a highly flammable gas extracted from the Earth through drilling. It is a versatile energy source, used for electricity generation, heating and industrial processes. But despite its widespread use, natural gas is a finite resource.
In another February 2026 report, the EIA disclosed that U.S. natural gas production slipped 3% from December to January due to frigid winter weather. However, federal energy officials said the decline was temporary and expect output to rebound in the coming months.
The EIA said that extreme cold conditions disrupted production at the start of the year. But looking ahead, the EIA projects production will accelerate in the second half of 2026 as new pipeline capacity comes online in the Permian Basin and producers ramp up drilling in response to higher natural gas prices during the first half of the year.
Meanwhile, the U.S. Department of Energy (DOE) said in a Jan. 19 fact sheet that U.S. natural gas production has reached record levels. The department expects output to average 109 billion cubic feet per day (Bcf/d) this year, marking a new all-time high.
In a separate Jan. 20 statement, the DOE described the current period as an “unprecedented era of energy dominance,” crediting administration policies for boosting domestic oil and gas production. The department said the U.S. now produces as much natural gas as Russia, Iran and China combined, at roughly 108 Bcf/d.
Watch Gary Franchi of Next News Network discuss whether the Democrats’ ban on gas stoves is aimed at protecting the air or stripping liberties.
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