U.S. marketed pure gasoline manufacturing remained comparatively flat in 2024, rising by lower than 0.4 billion cubic ft per day (Bcf/d) in contrast with 2023 to common 113 Bcf/d, in line with our newest Pure Fuel Month-to-month. Manufacturing progress within the Permian was offset by declining manufacturing within the Haynesville and comparatively flat manufacturing in Appalachia.
EIA’s Quick-Time period Power Outlook breaks out U.S. Decrease 48 (L48) marketed pure gasoline manufacturing knowledge for the Appalachia, Bakken, Eagle Ford, Haynesville, and Permian areas and in addition contains Alaska and Gulf of America/Gulf of Mexico manufacturing knowledge. The Appalachia, Permian, and Haynesville areas produce essentially the most, accounting for round two-thirds of whole U.S. pure gasoline manufacturing mixed.
In 2024, extra pure gasoline was produced within the Appalachia area of the Northeast than in every other U.S. area, accounting for 31%, or 35.6 Bcf/d, of marketed pure gasoline manufacturing. Manufacturing progress within the Appalachia area has been slowing in recent times due to restricted pipeline takeaway capability to move pure gasoline to demand markets. In 2024, Appalachian manufacturing rose barely by 0.1% (0.50 million cubic ft per day) and in 2023 Appalachian manufacturing grew by 0.9 Bcf/d. Traditionally low Henry Hub costs contributed to the muted progress in Appalachia in 2024. The Henry Hub spot value averaged $2.21 per million British thermal models (MMBtu) in 2024, the bottom common annual Henry Hub value ever reported and 16% decrease than the 2023 annual common.
The Permian area in Texas and New Mexico accounted for 22% of the marketed pure gasoline manufacturing in america in 2024 and accounted for nearly all the expansion in U.S. manufacturing. In 2024, marketed pure gasoline manufacturing within the Permian rose by 12%, or 2.7 Bcf/d, to common 25.4 Bcf/d.
Within the Permian area, progress in pure gasoline manufacturing is primarily the results of related gasoline produced throughout oil manufacturing. West Texas Intermediate (WTI) crude oil costs averaged $77/b in 2024, excessive sufficient to help oil-directed drilling within the Permian area. The typical breakeven value for brand spanking new wells ranged between $62 per barrel (b) and $64/b within the Permian Midland Basin and the Permian Delaware Basin, two of the most important basins within the Permian, in line with knowledge from a Dallas Fed Power survey.
In 2024, manufacturing within the Haynesville area, which spans Louisiana and Texas, averaged 14.6 Bcf/d, 11% lower than the 2023 annual common. Pure gasoline manufacturing within the Haynesville declined final 12 months as producers decreased drilling exercise due to traditionally low pure gasoline costs. Producers averaged 37 energetic rigs monthly within the Haynesville in 2024, in contrast with 57 energetic rigs in 2023. The upper relative value to provide pure gasoline within the Haynesville area performed a job in lowering rig exercise and within the decline in common annual manufacturing in 2024 in contrast with 2023.
Pure gasoline manufacturing prices depend upon many elements, together with the price of drilling wells. The Haynesville formation is between 10,500 ft to 13,500 ft deep, which is far deeper than different formations. By comparability, wells within the Marcellus within the Appalachia area are on common 4,000 ft to eight,500 ft deep. As a result of drilling deeper wells within the Haynesville is costlier than drilling wells within the Marcellus and different shale performs, pure gasoline costs must be comparatively increased to make drilling economical.