EIA: Texas is Largest Producer of Shale Natural Gas

Shale Gas Production Increased from 3 bcf/d - 11 bc/d from 2007 - 2013 in Texas
Gross Withdrawls from Shale Gas Wells

Gross Withdrawls from Shale Gas Wells|Click to Enlarge

Texas is the largest producer of shale natural gas, according to a report from the Energy Information Administration (EIA). From 2007 to 2013, shale gas production in Texas increased from 3 bcf/d to 11 bcf/d, with the majority of the shale gas produced coming from the Barnett, Eagle Ford, and Haynesville Shale formations.

In 2013, total natural gas gross withdrawals* in the U.S. hit 82 bcf/d, with shale gas wells becoming the largest source of natural gas production. According to the Natural Gas Annual, gross withdrawals from shale gas wells surpassed production from non-shale gas wells after volumes increased from 5 Bcf/d in 2007 to 33 Bcf/d in 2013, representing 40% of total natural gas production.

Natural gas prices have averaged ~$2.00 – ~$4.00 per mmbtu since 2011, which is a far cry from peak prices of nearly $13.00 per mmbtu during the Summer of 2008. New technology is enabling producers to shift focus to resources that are easier to reach and at lower costs, which is reflective of the lower commodity prices.

In 2007, shale well gas comprised only 8% of total U.S. production levels. The distribution across the nation since then, however, has changed significantly in areas such as Texas, Pennsylvania, Louisiana, and Arkansas. These states accounted for 79% of shale gas production in the U.S., or about 26 bcf/d.

Natural gas gross withdrawals – a measure of full well stream production including all natural gas liquids and non-hydrocarbon gases after oil, light liquid hydrocarbons, and water have been removed from the product.

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