US NATGAS: Trump’s Aim to Boost US Natgas Output and Cut Prices a Tough Task

President Trump’s sweeping measures aimed at maximising US oil and gas output mark a U-turn in energy policy from his predecessor, but even with faster permitting for exploration and sales, the nation may struggle to boost output without help from local and international prices, Reuters said.

• The main factor repressing US natural gas production was weak gas prices for electricity generation, rather than government policies.
• If natgas prices trend steadily higher in 2025, Trump’s hope to boost output will materialise. However, higher natgas prices would run counter to Trump’s other ambition on cutting energy costs – a major factor behind his election.
• US gas output from shale and tight gas wells – around 75% of total US natgas output – fell in 2024 for the first time in over a decade as average natgas for electricity generation hit record lows.
• The power sector consumes around 43% of US total natgas use.
• Much of the easily recoverable reserves have already been drilled, meaning the cost of future extraction will be higher.
• Falling LNG export prices and higher costs are also a factor that could hamper further natgas production growth.