Permian Basin Fuels Record US Natural Gas Production
US natural gas production reached an all-time high in July 2026, driven primarily by increased output from the prolific Permian Basin. According to the US Energy Information Administration (EIA), gross withdrawals, which represent the total volume of natural gas extracted at the wellhead, reached a record 137 billion cubic feet per day (Bcf/d) in July.
The EIA said that new wells coming online in Texas and New Mexico were the main drivers of the increase. The Permian region, covering parts of western Texas and eastern New Mexico, is among the world's most prolific oil and gas producing areas. Gross withdrawals in Texas and New Mexico rose by a combined 1.7 Bcf/d, or 3.2 percent, between June and July 2026.
The EIA attributed the growth to higher natural gas prices, continued improvements in new-well productivity, and increased operational efficiency. Infrastructure developments are also supporting production growth in the Permian region, with new natural gas pipeline infrastructure easing long-standing gas transportation bottlenecks in Texas. Increased pipeline capacity is allowing more gas to be transported out of the Permian Basin towards liquefied natural gas (LNG) export terminals along the Gulf Coast.