Natural gas is a major domestic energy source, providing a significant portion of the energy needed for electricity, heating, and industry across the United States. Its role as a cleaner-burning alternative to coal and petroleum has increased its importance, leading to record levels of domestic extraction. This massive production is highly concentrated, with a small number of states possessing the geological formations necessary for high-volume recovery.
How Natural Gas Production is Measured
Natural gas production is typically measured in volumetric units, most commonly cubic feet, which is scaled up to Billions of Cubic Feet per day (Bcf/d) or Trillions of Cubic Feet (Tcf) annually. The U.S. Energy Information Administration (EIA) tracks this data, providing a standardized look at the country’s output.
A key distinction is between gross withdrawals and marketed production. Gross withdrawals represent the total volume extracted, including all impurities and gases. Marketed production, the figure generally used when ranking states, is the volume remaining after removing nonhydrocarbon gases and subtracting gas that is vented, flared, or reinjected.
The Nation’s Leading Producer
Texas holds the title as the nation’s largest natural gas producer, consistently generating a far greater volume than any other state. In 2023, Texas accounted for approximately 28% of the total U.S. marketed natural gas production. This immense output is directly tied to the state’s expansive and highly productive geological formations.
The primary reason for this dominance is the Permian Basin, a vast sedimentary area stretching across West Texas and into southeastern New Mexico. Formations like the Wolfcamp and Bone Spring shales contribute substantial volumes of hydrocarbons. Much of the gas produced here is “associated gas,” meaning it is extracted as a byproduct of oil-focused drilling.
The state’s output is also bolstered by the Haynesville/Bossier Shale, which spans East Texas and parts of Louisiana. Texas maintains its leadership position due to the combination of these massive shale plays and the continuous application of advanced drilling and hydraulic fracturing technologies.
Key States Supporting US Production
While Texas leads, a handful of other states are major contributors, collectively supplying the bulk of the remaining national output. Pennsylvania is the second-largest producer, drawing almost all of its volume from the massive Marcellus Shale in the Appalachian Basin. West Virginia also taps into the same Marcellus and Utica shales, securing its spot among the top five producing states.
Louisiana’s production is significant, primarily driven by the deep, gassy nature of the Haynesville formation. New Mexico, ranking close behind, sees most of its natural gas production associated with its portion of the Permian Basin, particularly the Delaware Basin. The collective output of these states underpins the national energy infrastructure.
Why This Production Matters
The high volume of domestic natural gas production is important because of its diverse applications across the U.S. economy. Electricity generation represents the largest end-use, consuming about 40% of the supply to power homes and businesses. The industrial sector is the second-largest consumer, utilizing the fuel for manufacturing processes, including fertilizers, chemicals, and plastics.
High domestic supply also has significant economic and geopolitical implications, contributing substantially to energy independence. Increased production has helped the U.S. become the world’s largest exporter of Liquefied Natural Gas (LNG), influencing global energy markets. The residential and commercial sectors also rely on this supply for heating and cooking.