EIA: Associated Gas up 6% in 2024, Led by Permian Output

SECAUCUS, NJ (DTN) – Associated natural gas, a by-product of oil drilling that produces liquids such as ethane, butane and propane, saw a 6% increase in volume last year from surging crude production in five key U.S. shale basins, the Energy Information Administration said Friday (11/21).

Associated gas production from the Permian, Bakken, Eagle Ford, Anadarko and Niobrara basins averaged 18.2 Bcfd last year, up 1 Bcfd from 2023, the EIA said, citing data from Enverus DrillingInfo. This product, also known as wet gas, accounted for 37% of total gas produced by the five basins over the past two years.

Of the five, the Permian, stretching from West Texas to southeastern New Mexico, contributed to most of last year’s growth, followed by the North Dakota-based Bakken and the south-to-central Texas spanning Eagle Ford.

Supported by an average WTI crude price of $77 bbl, oil-directed drilling in the Permian averaged 6.3 million bpd last year, growing 377,000 bpd from the year prior to account for almost all of U.S. oil production growth in 2024.

As a result, output of Permian associated gas grew 8% last year to 12.5 Bcfd, making up 47% of its total gas production.

The Bakken, which saw 67% of its total gas volume coming from associated gas in 2024,

produced 2.3 Bcfd last year while Eagle Ford produced 1.8 Bcfd.

Last year’s growth in associated gas also led to record output in ethane – a crucial feedstock for the plastics, fibers and petrochemical industries. the EIA stated.