Permian natural gas production increased faster than crude oil

Natural gas production in the Permian Basin, a major oil and gas region spanning West Texas and southeast New Mexico, has grown faster than crude oil production over the past several years. Between 2021 and 2025, natural gas output there rose 60%, from 17.2 billion cubic feet per day to 27.6 billion. Crude oil production grew too, but by a smaller 39%, from 4.7 million barrels a day to 6.6 million.

The reason has to do with how oil and gas fields change as they age. As wells are pumped over time, pressure underground drops, and natural gas becomes relatively easier to produce than oil. This shifts the mix of what comes out of the ground toward more gas per barrel of oil, a ratio that has climbed 16% since 2021. If that ratio had stayed flat instead of rising, the Permian would have produced 14% less natural gas in 2025 than it actually did.

This is a supply-side energy market story, not something tied to a specific home upgrade or rebate. But natural gas supply trends like this can factor into the price and availability of gas used for home heating and cooking. If you use natural gas in your house, broader shifts in how much is being produced nationally are part of the backdrop for utility prices, even though this particular report does not say what it means for your bill.