U.S. Gas Drillers Boost 2025 Output for Export Demand
U.S. natural gas producers are set to increase output in 2025, reversing the production cuts experienced in 2024. This anticipated rise is driven by expectations of higher prices and increased demand from liquefied natural gas (LNG) export facilities.
In 2024, the U.S. Energy Information Administration (EIA) reported a decline in dry gas production to 103.3 billion cubic feet per day (bcfd) from a record 103.8 bcfd in 2023. This reduction was primarily due to decreased drilling activity amid lower spot gas prices. However, the EIA projects that production will rebound to 104.5 bcfd in 2025, aligning with an expected increase in total gas demand to 113.0 bcfd, largely driven by a 14% rise in LNG exports.
Major gas producers have indicated plans to ramp up production as prices improve. Analysts forecast a significant price increase to $3.27 per million British thermal units in 2025, suggesting a tighter supply-demand balance for natural gas in the coming years.
This strategic shift underscores the industry's response to evolving market dynamics and the growing global demand for natural gas. The anticipated production increase is expected to enhance the U.S.'s position in the global energy market, particularly in LNG exports.
