Texas natural gas production in January dropped to the lowest point since February 2021 as both well production and associated gas from oil wells in the Permian Basin counties shrank, according to preliminary data from the Railroad Commission of Texas (RRC).

Permian Prices

The state’s gas production during January was estimated at 845 Bcf, or 27 Bcf/d, regulators said in the most recent report. Gas production was 952 Bcf in January 2021.

January’s recorded gas volumes marked a four-month slide for Texas production, aligning with a similar drop in crude oil and condensate. Producers, particularly Permian-focused companies, have been signaling production cuts as gas prices plummet and oilfield costs continue to tick upward.

The state’s top three gas producing counties were in the...