Natural gas production in the United States is on track to set a new record for the second consecutive year. Producers are responding to signs of demand both domestically and abroad. The rising demand for energy to power data centers in the U.S. and increased exports of liquefied natural gas (LNG), along with expanded liquefaction capacity, will push U.S. natural gas production to new heights this year.
Production Records and Future Forecasts
U.S. natural gas production is expected to exceed the 2025 record in 2026. This increase is driven by higher production of associated gas in the Permian Basin and also increased gas production in the Haynesville field, which is close to LNG export terminals and major industrial gas users. According to the U.S. Energy Information Administration (EIA), U.S. dry natural gas production is projected to rise to 112.2 billion cubic feet per day (bcfd) this year, a significant increase from last year's 107.64 bcfd. U.S. natural gas production is expected to reach 116.13 bcfd by 2027.
Read more: Aramco Supplies More Oil Shipments to Europe
Impact of Increased Demand and Market Developments
In the first half of this year, U.S. LNG exports averaged 17.4 billion cubic feet per day (Bcf/d), a 23% increase compared to the same period in 2025. This increase is due to expanded export capacity and a surge in shipments at the fastest rate since exports began a decade ago. In the domestic market, data centers have turned to additional energy production from gas to support the booming artificial intelligence market.
American gas producers are ramping up production and entering strategic deals to expand their operations. Recently, EQT Corporation and Range Resources announced a definitive merger agreement under which EQT will acquire Range in an all-stock transaction, resulting in the creation of the largest natural gas company in the United States with a total corporate value of over $50 billion.
Lydia Walker, senior research analyst at Wood Mackenzie’s upstream team, stated: "North America's gas markets have shifted from producer pressure to demand pressure, and this EQT deal places it at the center of this transformation." She also added: "Range strengthens EQT's position as a preferred supplier for energy production in Appalachia and the growth of data centers, providing the scale, inventory, and liquid diversity necessary to meet this demand for decades to come."
Read more: Baker Hughes Earns More Profit Due to Chart Acquisition and Price Increases · Decrease in Gas Deliveries to Freeport LNG Following Drop in U.S. Demand
