Permian Basin Drives US Natural Gas Production to Record High

US natural gas production has reached an all-time high in July 2026, according to data from the US Energy Information Administration (EIA). The record was driven primarily by increased output from the prolific Permian Basin, which covers parts of western Texas and eastern New Mexico. Gross withdrawals, representing the total volume of natural gas extracted at the wellhead, reached a record 137 billion cubic feet per day in July.

The increase was largely due to new wells coming online in Texas and New Mexico, with gross withdrawals in those states rising by a combined 1.7 Bcf/d, or 3.2 percent, between June and July 2026. The Permian Basin has been experiencing increased gas-to-oil ratios, contributing to higher natural gas output.

The EIA noted that infrastructure developments are also supporting production growth in the Permian region. New natural gas pipeline infrastructure is easing long-standing gas transportation bottlenecks in Texas, allowing more gas to be transported out of the Permian Basin towards liquefied natural gas (LNG) export terminals along the Gulf Coast.