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Rising Gas-Oil Ratios Drive Faster Natural Gas Growth in Permian Basin, EIA Says

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The Permian Basin lifted natural gas production by 60% between 2021 and 2025, outpacing the 39% increase in crude oil output, the US Energy Information Administration said Thursday.

Marketed natural gas production climbed to 27.6 billion cubic feet per day in 2025 from 17.2 Bcf/d in 2021, while crude oil production increased to 6.6 million barrels per day from 4.7 million b/d, according to the agency.

The Energy Information Administration attributed the stronger gas growth to rising gas-oil ratios, which increase as reservoir pressure declines and natural gas flows more easily than crude oil.

The Permian's average gas-oil ratio reached nearly 4,200 cubic feet per barrel in 2025, up 16% from 3,628 cf/b in 2021. The agency expects the ratio to continue increasing as the basin matures.

Using 2021 production levels as a benchmark, the basin generated 17.3 Bcf/d of natural gas alongside 4.7 million b/d of crude oil, the Energy Information Administration said.

Had the gas-oil ratio remained unchanged from 2021 levels, natural gas production would have reached only 23.8 Bcf/d in 2025. The higher ratio added roughly 3.8 Bcf/d of incremental gas supply, according to the agency.

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