Pennsylvania, Ohio, West Virginia, Oklahoma and North Dakota account for 35% of total natural gas production – EIA expects NatGas production growth in 2017 for industrial use and LNG exports

Natural gas production in the United States grew 5% last year. The growth brought total production to a record high of 79 Bcf/d for 2015, even as the rig count plummeted and natural gas prices remained depressed. Pennsylvania, Ohio, West Virginia, Oklahoma and North Dakota made up the increased production, offsetting lower levels of natural gas production in the rest of the United States.

EIA US Natural Gas Production 2015

Production from Pennsylvania, Ohio, West Virginia, Oklahoma and North Dakota accounted for 35% of total U.S. natural gas production in 2015, according to the EIA. In most cases, production in those five states production growth slowed in 2015 from 2014 despite high levels of overall natural gas production. Pennsylvania, for example, saw natural gas production growth of 1.5 Bcf/d in 2015, compared to 2.6 Bcf/d in 2014.

Production in Ohio was an exception, however, with production growth increasing 41% year-over-year. Ohio produced 1.4 Bcf/d in 2015, mostly from the relatively less-developed Utica Shale play. Production from the Utica is expected to continue growing, making Ohio an increasingly important part of total U.S. natural gas production.

Natural gas production in the Gulf of Mexico grew slightly as well in 2015, reaching 3.6 Bcf/d, 6% more than in 2014. The increase broke a five-year streak of declining natural gas production in the GOM. The EIA suspects that the trend of decreasing natural gas production from projects in the Gulf is likely due to the comparative costliness of offshore production versus onshore.

Production in Louisiana fell 2% year-over-year to 5.3 Bcf/d. Between 2012 and 2015, natural gas production from the Haynesville Shale play decreased 45%, contributing to the drop in the state’s total natural gas production.

EIA projects natural gas production to continue growing, albeit at a slower pace in 2016. Low natural gas prices and fewer active rigs are expected to pull natural gas production growth back to 0.9% this year.

The EIA expects natural gas production to jump in 2017, however, with production growing 2.2% as projected natural gas prices increase with demand for natural gas for industrial use and LNG exports.


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