Source: The Texas Tribune
Record-breaking production helps stabilize electricity prices as Texans crank up the AC.
In March 2025, Texas achieved a new milestone in energy production, with natural gas output reaching a record high of 34.4 billion cubic feet per day (bcf/d), according to the Texas Oil & Gas Association (TXOGA). This surge in production reflects the state’s continued leadership in providing reliable, affordable energy, not just to Texans, but to consumers and trading partners across the globe.
This increase comes at a critical time. As summer temperatures rise, so does electricity demand in Texas, where air conditioning is essential for comfort and safety. Natural gas fuels over 70% of the state’s electricity, making this abundant and dispatchable resource the backbone of the Texas power grid. With more supply flowing from the field, the market is better equipped to meet peak summer demand without sharp price spikes, helping to stabilize electricity costs for families and businesses across the state.
Importantly, this production boom isn’t just about volume. It’s also about balance. Texas currently produces 27.7 bcf/d of dry natural gas, while consumers in the state use approximately 11.8 bcf/d. The rest is exported, including 8.6 bcf/d as liquefied natural gas (LNG) and another 3.9 bcf/d via pipeline to Mexico. While some have worried that LNG exports could tighten domestic supply and drive up prices, recent data suggest otherwise.
Increased production has more than kept pace with rising exports, contributing to moderate prices that continue to benefit consumers at home. In fact, U.S. natural gas prices have remained relatively low heading into the summer season, in part due to robust storage levels, approaching one trillion cubic feet in Texas alone, and expanded production capacity.
This ability to serve both domestic and international markets has been enhanced by recent federal policy changes. The restart of LNG export permitting by the federal government earlier this year has jumpstarted key projects like Cheniere Energy’s expansion in Corpus Christi and ExxonMobil’s development of the Golden Pass terminal near Sabine Pass. Once completed, these facilities will significantly boost U.S. export capacity, keeping Texas at the center of global energy supply chains.
At the same time, infrastructure investment within the state continues to rise. Through the newly established $5 billion Texas Energy Fund, the state is backing natural gas projects that will reinforce grid reliability and expand delivery networks. Projects like the Saddleback and Olney peaker plants, along with several slated for 2026, are designed to bring new dispatchable generation online where it’s needed most, especially in fast-growing regions like Houston, central Texas, and the Permian Basin.
Ultimately, Texas’s record-setting natural gas production is more than a data point. It’s a reflection of long-term strategic investment, responsible resource development, and a deep understanding of the critical role energy plays in people’s lives. Whether it’s keeping homes cool in the summer heat or supplying allies abroad with cleaner-burning fuel, Texas natural gas is delivering, and Texans are seeing the benefits firsthand in the form of stable power and competitive energy prices.
