Three of the U.S.’s most oil-rich producing basins have also seen a notable rise in natural gas output over the past decade, according to the Energy Information Administration (EIA). The Bakken, Eagle Ford, and Permian basins, known primarily for their crude oil, have shifted significantly towards natural gas. In 2014, natural gas made up about 29% of total production from these basins, but by 2024, it had climbed to 40%.
In the Permian Basin, the ratio of natural gas to oil production has been fairly steady, but the gas-to-oil ratio (GOR) has gradually increased. Back in 2014, the GOR was 3.1 Mcf per barrel, representing 34% of total production. By 2024, that figure had risen to 4 Mcf per barrel or 40% of total production. Overall, natural gas production in the Permian has grown eightfold since 2014, while crude oil output has increased sixfold. The Permian remains the largest tight oil play in the United States, but this rise in natural gas is becoming increasingly important for operators trying to maximize returns.
The Eagle Ford play has consistently had the highest GOR of these three basins. The GOR in Eagle Ford went from 3.5 Mcf per barrel or 37% of total production in 2014 to 5.6 Mcf per barrel or 48% by 2024. This shift reflects a 14% increase in average natural gas production, coupled with a 28% decline in crude oil production over the same period. For operators, this shift is both a blessing and a challenge. Natural gas provides another revenue stream, but the lower crude output affects overall productivity, especially as Eagle Ford continues to mature.
The Bakken Basin, historically a lower gas producer relative to oil, has also seen its GOR increase substantially. In 2014, natural gas made up just 16% of production, with a GOR of 1.2 Mcf per barrel. By 2024, that ratio had more than doubled to 2.9 Mcf per barrel, or 33% of total production. During that same time, natural gas output from the Bakken surged 186%, while crude production only rose by 14%. This shift reflects the maturing nature of the Bakken, where increased GOR can signal the decline of well pressure and reservoir energy.
What’s happening across these basins is that natural gas, which comes as a byproduct of oil extraction (known as associated gas), is becoming a larger share of the production pie. In total, associated gas production from the Bakken, Eagle Ford, and Permian has more than tripled, with an increase of 22 billion cubic feet per day over the last decade. Meanwhile, crude oil output from these tight oil plays has only doubled, with an increase of 4 million barrels per day.
This rise in GOR has significant implications for operators and their returns. As these shale plays mature and become gassier, the economics of oil extraction change. Higher GOR often means declining oil production rates, which can reduce overall profitability for oil-focused operators. However, the increased gas output can also be an opportunity, especially with rising demand for natural gas in domestic and global markets. The challenge lies in managing infrastructure and takeaway capacity to handle the growing gas production effectively.
Takeaway capacity is becoming a critical factor in these basins. As natural gas production rises, the need for pipelines and infrastructure to move that gas to market is more pressing than ever. Limited takeaway capacity can lead to bottlenecks, which might force operators to flare the gas or even curtail production. In the Permian, for instance, takeaway constraints have been a recurring issue, with operators sometimes left with no choice but to burn off the excess gas due to insufficient pipeline access. Addressing these infrastructure needs will be crucial for the continued profitability and sustainability of operations in these major oil and gas plays.
