Associated natural gas production declines in 2020 following three years of growth
The Energy Information Administration reports that lowered demand amidst COVID caused a decline in associated gas production.
2020 saw a decrease in associated natural gas production amongst the five major US onshore oil producing regions (Permian, Bakken, Eagle Ford, Niobrara, and Anadarko). The EIA reports that the total share of associated gas produced in these regions declined by 1.5% year over year and averaged 37.7% of natural gas production. The drop in production has been attributed to decreased demand in response to the COVID-19 pandemic. A 9.2% drop in oil production in 2020 led to about 4.1% less associated gas being produced per day – around 14.2 billion cubic feet.
The decline in associated gas production comes after three years of continuous growth, particularly in the Permian region. Spanning parts of Texas and New Mexico, the Permian region accounted for 50% of associated gas production 2020. It is notably the only region that did not see a decline in production.
