What EIA Changed About The Permian Read
The old version of this page framed Permian associated gas mostly through pipeline bottlenecks and procurement timing. EIA's June 18 analysis gives the page a better factual center: the Permian's gas-oil ratio is rising, so the basin produced more natural gas per barrel of oil as it matured.
EIA says marketed natural gas production in the Permian rose from 17.2 Bcf/d in 2021 to 27.6 Bcf/d in 2025. Crude oil output also grew, from 4.7 million b/d to 6.6 million b/d, but the gas increase was faster. That is why Permian associated gas remains one of the main supply-side counterweights to LNG-driven demand growth.
| Signal | EIA Source Fact | Buyer Read |
|---|---|---|
| Gas production outpaced oil | EIA says Permian marketed natural gas rose from 17.2 Bcf/d in 2021 to 27.6 Bcf/d in 2025. | Associated gas remains a major supply-side input for Henry Hub and Gulf Coast risk models. |
| Oil still drives the basin | EIA says Permian crude oil production rose from 4.7 million b/d in 2021 to 6.6 million b/d in 2025. | Gas supply can keep growing even when the commercial buyer is watching natural gas, not crude. |
| The gas-oil ratio increased | EIA says the Permian gas-oil ratio averaged nearly 4,200 cubic feet per barrel in 2025, up 16% from 2021. | A maturing basin can produce more gas per barrel of oil, changing supply without requiring a separate gas-drilling boom. |
| Higher GOR added material gas | EIA estimates 2025 Permian output would have been 23.8 Bcf/d if the 2021 GOR had held, 14% less than actual output. | That 3.8 Bcf/d difference is large enough to matter in national supply-balance conversations. |
Why The Gas-Oil Ratio Matters
The gas-oil ratio measures cubic feet of natural gas produced per barrel of crude oil. EIA says the Permian ratio averaged nearly 4,200 cubic feet per barrel in 2025, 16% higher than in 2021. EIA also says that if the 2021 ratio had held, 2025 Permian gas production would have been 23.8 Bcf/d instead of 27.6 Bcf/d.
That estimated 3.8 Bcf/d difference is the practical buyer signal. It does not guarantee low natural gas prices, but it helps explain why U.S. gas supply can keep expanding even when buyers are focused on LNG export growth and power-sector gas demand.
Supply-Balance Input
Rising Permian GOR can add gas supply without requiring a separate dry-gas growth story.
Not A Delivered-Rate Quote
Regional basis, transportation, storage, LNG feedgas, weather, and retail contract terms still decide buyer cost.
Commercial Buyer Actions
- Use Permian gas as a supply-side scenario input: pair it with the June STEO, weekly storage, LNG feedgas, and weather rather than treating it as a standalone bearish call.
- Separate Henry Hub from basis: more Permian supply can help national balance, while regional hubs and delivered zones can still disconnect.
- Watch Gulf Coast demand: LNG exports and industrial load can absorb incremental gas even when upstream supply grows.
- Keep procurement claims modest: this page is source-backed market context, not a supplier offer or guaranteed savings estimate.
What Not To Infer
- Do not assume Permian associated gas guarantees lower Henry Hub prices.
- Do not assume Waha or Permian basis is available to a buyer in another region without transportation and contract analysis.
- Do not treat a production-growth fact as a delivered utility-bill forecast.
- Do not use this page as a substitute for account-specific natural-gas procurement review.
Sources: U.S. Energy Information Administration Today in Energy, June 18, 2026; EIA Short-Term Energy Outlook, June 2026. Retrieved June 24, 2026.