Released November 24, 2025 | SUGAR LAND
Written by Paul Wiseman and Maria Sanchez for Industrial Info Resources (Sugar Land, Texas)
Summary
The Permian Basin led the U.S. in the growth of associated natural gas in 2024. The Bakken and the Eagle Ford are two and three on that list.
Associated Natural Gas Production Rises in 2024
The U.S. Energy Information Administration (EIA) reports that natural gas associated with oil production increased by nearly 6% in 2024 over the previous year. That increase mirrored the oil production growth in the Permian Basin of western Texas and southeast New Mexico.
Associated gas averaged 18.5 billion cubic feet per day (Bcf/d) in 2024, according to the EIA, which cited data from Enverus Drillinginfo. That was up 1.0 Bcf/d from 2023.
What Is Associated Natural Gas?
Defined as natural gas coming from wells whose primary production is oil, associated natural gas comes mostly from five U.S. basins: the Permian, Bakken, Eagle Ford, Anadarko and Niobrara.
"We define oil wells as those with a gas-to-oil ratio 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," the EIA said in a press release last week.
Natural gas production is generally considered in three categories: dry gas (or gas only), wet gas (which is mostly gas but also includes natural gas liquids, or NGLs) and associated natural gas, which is dissolved in oil production.
Breaking the Increase Out by Basin
Most associated gas growth came from the Permian, increasing by 8%, from 12.5 Bcf/d. It accounted for 47% of that region's natural gas production that year. Its oil production also increased over that period.
The Permian also accounted for almost all U.S. oil production growth, increasing by 377,000 barrels per day (BBL/d), and was a key factor in natural gas production growth. Oil production averaged 6.3 million BBL/d in 2024.
Among other oil basins, the Bakken had the largest share of natural gas production from associated gas, at 67%. The region produced 2.3 Bcf/d, while the Eagle Ford (South Texas) produced 1.8 Bcf/d.
Take Me Away
The Permian produces more natural gas than all but one region in the U.S., and produces more than most other nations. It also produces more oil than any other single basin worldwide, with oil production also rising since the beginning of the shale revolution in the early 2000s. For more information, see November 13, 2025, article - EIA: Three U.S. Regions Outproduce Most Nations in Natural Gas.
As the Permian's best producing acreage matures, it has become "gassier," with gas-to-oil ratios rising. All of this has strained the takeaway capacity of existing pipelines.
While natural gas is a profit center in gas-primary regions such as Haynesville and Appalachia, it is sometimes sold at a loss in the Permian. That is largely due to an ongoing lag in natural gas pipeline construction, as it is unable to keep up with supply. This oversupply drives prices at the Permian's Waha hub into negative territory--producers must actually pay to have it carried off.
The only alternative to paying would be to shut in oil wells. In most cases, producers would lose more from reduced oil revenue than it costs them to pay for sending out the natural gas.
The good news is that by this time next year, the takeaway situation may have eased, or even reversed.
U.S. Natural Gas Production Accelerates in 2025
EIA monthly data show a clear upward shift in overall U.S. natural gas production entering 2025, based on data available through August. Overall production held above 104 Bcf/d in January and February before climbing sharply in March to 107.3 Bcf/d. Growth continued through the summer, with volumes reaching 108.5 Bcf/d in July and 109.1 Bcf/d in August--a record high.
Looking beyond the published EIA data, natural-gas pipeline nominations indicate that growth persisted after August, with production estimated to have reached 110 Bcf/d in November. This represents an increase of nearly 6 Bcf/d compared to 2024, led by gains in Louisiana (Haynesville) and the Appalachian region, particularly Pennsylvania and West Virginia.
The Future
Whether associated natural gas continues to increase remains to be seen. Many producers and experts believe production in the Permian and elsewhere is peaking due to lower-than-ideal prices and the fact that the best producing prospects have been drilled.
By the Numbers
- 6%: Amount of increase in associated natural gas in 2024 over 2023
- 8%: Amount of increase in the Permian, which led all basins in 2024
- 8: Number of new Permian-located natural gas pipelines being tracked by IIR
Key Takeaways
- The rise in associated natural gas in 2024 is mostly in basins where oil production is also rising, such as the Permian.
- There the key issue is takeaway capacity for the growing natural gas output--a situation that may be remedied with new pipelines scheduled to come online in 2026.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
