Permian Natural Gas Output Surged 60% Since 2021, Outpacing Oil Growth
According to Permian Basin Oil and Gas Magazine, the U.S. Energy Information Administration reported that marketed natural gas production in the Permian Basin climbed 60% between 2021 and 2025, reaching 27.6 billion cubic feet per day. Crude oil production grew 39% over the same period, from 4.7 million barrels per day to 6.6 million b/d. The EIA attributes the faster gas growth to a rising gas-oil ratio, which averaged nearly 4,200 cubic feet of gas per barrel in 2025, up 16% from 2021. The agency expects that trend to continue as the basin matures.
What It Means for Subcontractors
- Sustained gas output growth signals continued demand for midstream infrastructure work, including gathering lines, compression stations, and processing facilities across the Permian.
- Rising GOR means more gas handling at the wellsite, creating opportunities for subcontractors in separation equipment, flare management, and gas measurement services.
- With the EIA projecting gas growth to keep outpacing oil, companies positioned in gas-side field services are likely to see a longer runway of work in the basin.
