The U.S. Energy Information Administration (EIA) released its August Short-Term Energy Outlook. Marketed natural gas production is projected to reach a record 122.5 billion cubic feet per day (Bcf/d) in 2026. This forecast represents a 3.4% increase over the record levels expected in 2025.
The Permian region in Texas and New Mexico and the Haynesville region in Louisiana and Texas are the primary growth drivers. Higher crude oil prices are incentivizing associated gas production in the Permian. Drilling in the Haynesville remains economical despite softer natural gas prices.
Abundant supply may moderate input costs for electric utilities, potentially benefiting companies in the XLU and VPU ETFs. The outlook also influences infrastructure planning for midstream firms tracked by the IFRA fund.