Permian gas output is outpacing oil growth, signaling shifting dynamics in U.S. energy productionExecutive summary: Permian natural gas production increased 60% from 2021 to 2025, outpacing the 39% growth in crude oil production. The faster growth in gas production suggests increasing supply from associated gas, which could influence domestic pricing, infrastructure needs, and the competitive balance between gas and oil markets. The U.S. Energy Information Administration and Permian producers are the primary sources; market participants and regulators are affected. Analysts expect continued growth in Permian gas output, with potential adjustments in pipeline capacity and pricing differentials.The U.S. Energy Information Administration reported that Permian natural gas production rose from 17.2 Bcf/d in 2021 to 27.6 Bcf/d in 2025, a 60% increase, while crude oil production grew 39% over the same period. This disparity indicates that associated gas capture is improving faster than oil extraction, potentially affecting supply balances and pricing. The trend is based on EIA data released on June 18, 2026.Connected developmentsIEA forecasts massive oil surplus in 2027 after Hormuz recoveryBOE leaves rates unchanged, signals caution on Hormuz openingOpen the full case file on Beyond →
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