Business/economics

US Sets Record for Energy Production in 2025

US Energy Information Administration data sees the country’s energy production jump 3.4% over 2024 levels. Additionally, the EIA predicts industrial natural gas consumption to hit records in 2026 and 2027.

Oil pumps at the horizon.
Source: Torsten Asmus/Getty Images.

Total energy production in the US increased to a record 107 quadrillion British thermal units (quads) in 2025, a 3.4% increase from the previous high in 2024, according to data from the US Energy Information Administration (EIA). Total production was driven by record-high production in natural gas, crude oil, natural gas plant liquids (NGPLs), and renewables. This was the fourth consecutive year in which the US set a record for total energy production.

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Fig. 1—US energy production by source, 1950–2025.
Source: US Energy Information Administration.

Dry natural gas production grew more than 4% from 2024 to a record-high 39 Tcf in 2025, with most of the growth occurring in the Appalachia, Permian, and Haynesville regions. Natural gas has been the largest source of US domestic energy production since 2011, and the US has been the largest natural gas producer in the world since 2011.

Crude oil production also set a record of 13.6 million B/D in 2025 and grew by 3%, or 350,000 B/D, over 2024’s high. Most of that growth occurred in the Permian region of western Texas and southeastern New Mexico. Crude oil accounted for 26% of domestic energy production, and the US remained the largest crude oil producer in the world.

Production of NGPLs, which are hydrocarbons separated as liquids during natural gas processing, grew 7% to a record 4 Tcf in 2025 compared with the previous record set in 2024. In 2025, NGPLs accounted for 9% of domestic energy production. NGPL production has grown every year since 2005 as natural gas production and processing have increased.

Renewable energy production grew by 3% from 2024 to a record high. This is the fifth consecutive year of growth for renewables. Solar and wind both set records for energy production as new generators came online. Geothermal, hydroelectric, and wood and waste energy production remained steady from 2024 to 2025. Biofuels production, which had grown in 4 consecutive years, declined slightly.

Coal accounted for 10% of domestic energy production in 2025. It increased by 4% from 2024 levels to 533 million short tons in 2025 after 2 years of declining production.

The EIA converts sources of energy to British thermal units as a common unit to compare different types of energy that are usually measured in units that are not directly comparable, such as barrels of crude oil and cubic feet of natural gas.

Industrial Gas Consumption

On the other side of the energy coin, the EIA has predicted US industrial natural gas consumption will hit records in 2026 and 2027.

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Fig. 2—Industrial natural gas consumption monthly average, January 1997–December 2027.
Source: US Energy Information Administration.

Industrial consumption averaged a record 23.6 Bcf/D in 2025, 1% more than the record 23.4 Bcf/D reached in 2023. In the latest forecast, consumption gradually increases further in 2026 and in 2027 as the natural gas-weighted manufacturing index is expected also to rise slightly over this period.

The EIA’s Short-Term Energy Outlook released in May forecast average annual industrial natural gas consumption to increase by 1.2% (0.3 Bcf/D) in 2026 and 1.7% (0.4 Bcf/D) in 2027. Despite these incremental gains in annual consumption, growth remains gradual because increases in industrial activity are partially offset by efficiency gains. Continued efficiency improvements reduce the amount of natural gas needed per unit of output.

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Fig. 3—Industrial sector average annual consumption change, 2016–2027.
Source: US Energy Information Administration.

Much of the industrial natural gas demand comes from the chemicals subsector and other manufacturing industries. The chemicals subsector is the largest industrial natural gas consumer, using natural gas to create heat, generate electricity, and serve as a feedstock in methanol, fertilizer, and hydrogen production.

Industrial demand shows a seasonal pattern. Consumption is typically highest in winter, when colder weather can increase heating needs at industrial facilities. Industrial natural gas consumption averaged 26.1 Bcf/D in January 2026, and the EIA forecasts it will average 26.7 Bcf/D in January 2027. By comparison, consumption reaches seasonal lows during the summer months, with forecast volumes lowest for the month of June in 2026 and 2027, averaging approximately 22.6 Bcf/D.

Industrial natural gas consumption has been relatively flat since 2018, with the main exception of the 2020 pandemic-related decline and recovery in 2021 and 2022. Relatively low US natural gas prices encouraged expansion in some energy-intensive industries through the mid-2010s, including petrochemicals and ammonia production and refining, particularly in the Gulf Coast region. As a result, the industrial sector now consumes natural gas at a higher baseline rate, but the pace of new capacity additions has slowed.

Improvements in industrial efficiency also have slowed growth in industrial fuel use. Many facilities have adopted more efficient process heaters, as well as heat-recovery technologies, that reduce the amount of natural gas required per unit of output. In the EIA’s latest forecast, however, rising industrial activity more than offsets these efficiency gains. The EIA said it expects the natural-gas-weighted manufacturing index to increase by 1.5% in 2026 and 0.7% in 2027, contributing to slightly higher industrial natural gas consumption over the next 2 years.