Awash In Natural Gas

But supply is more than keeping pace. Not only does production in the Appalachia Region continue to grow unabated, but the associated gas (co-produced with oil) in the Permian Basin has started to have a large impact on the natural gas market over the past year or so. Due to logistical constraints in the Permian Basin, this at times has led to significant flaring and even natural gas prices falling below zero at times in the area.

For perspective, current natural gas production in the Permian Basin is about 13 Bcf/d. That reflects a doubling of production there in just over two years, and is now second only to the Appalachia Region’s 31 Bcf/d.

I will close by pointing out that the Appalachia Region produced 13 Bcf/d – the current level of production in the Permian – in 2013. Permian Basin gas production isn’t growing quite as quickly as that in the Appalachia, but the resource potential suggests that both oil and gas production in the Permian will continue to grow for a number of years.

It seems inevitable that we are going to be awash in natural gas well into the next decade.

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Author: Robert Rapier

Robert Rapier is a seasoned chemical engineer with three decades of international experience in the energy sector. He holds undergraduate degrees in chemistry and mathematics, and a master’s in chemical engineering. Robert has worked extensively in oil refining, production, synthetic fuels, biomass energy, and alcohol production, earning several patents along the way. As Editor-in-Chief of Shale Magazine and a prolific author for Investing Daily, he shares his expertise through various newsletters and his latest book, American Energy: A History of Power, Progress, and Change. Robert's insights have been featured on 60 Minutes, The History Channel, CNBC, and PBS, among others. His articles have appeared in top publications like the Wall Street Journal, Washington Post, and The Economist. For nearly a decade, he has covered the energy sector for Forbes. View all posts by Robert Rapier