EIA Forecasts Record U.S. Natural Gas Demand and Output for 2026-2027

The U.S. Energy Information Administration (EIA) forecasts that industrial natural gas consumption will reach record highs through 2027, according to the agency’s May 2026 Short-Term Energy Outlook (STEO).

Industrial consumption in the United States averaged a record 23.6 billion cubic feet per day (Bcf/d) in 2025, representing a 1% increase over the previous record of 23.4 Bcf/d established in 2023. The EIA expects this upward trajectory to persist through 2026 and 2027, driven by a projected slight rise in the natural gas-weighted manufacturing index.

While industrial demand continues to climb, total U.S. Natural gas output is also projected to hit a record high in 2026. This growth in production is being driven primarily by activity in the Permian and Haynesville regions.

However, the broader demand landscape shows more volatility. Reuters reports that the EIA forecasts total natural gas demand to dip in 2026 before rebounding in 2027.

This shift in demand and output expectations has influenced pricing projections. According to reporting from Marcellus Drilling News, the May STEO has lowered the projected gas spot prices for both 2026 and 2027.

The energy sector is also adjusting to evolving power requirements in the technology space. TipRanks indicates that the outlook for power demand driven by data centers has increased the focus on both oil and natural gas.

Beyond natural gas, the EIA’s forecasts include broader trends for the U.S. Power grid. Windtech International reports that the agency expects continued growth in electricity demand and the expansion of renewables, though this growth is accompanied by forecasts of higher electricity prices.

The confluence of record industrial consumption and record output in 2026 suggests a period of high volume in the U.S. Gas market, even as the agency anticipates a temporary dip in overall demand before the projected 2027 rebound.