According to basic data provided by the Energy Information Administration, the total world output is 95 trillion cubic feet of natural gas. The major producers are the US and the Gulf countries. The US accounts for one-fifth of the production.

Natural gas is produced in gas and oil fields, which are conventional sources, and coalfields, which are non-conventional. Conventional sources have higher gas recovery rates than non-conventional sources. According to the National Assessment of Oil and Gas fact sheet, 94 percent of natural gas is produced from conventional sources. Gas wells account for two-thirds of the production, and the remaining comes from oil wells.

Natural gas is produced from wells, both in land and offshore locations such as the Gulf of Mexico. Natural gas production is concentrated in the lower 48 states. Texas is the largest producer of gas, and San Juan Basin is the top-producing field in the US. The number of wells in the US is approximately 393,000, out of which 68,000 wells are found in Texas and negligible number of wells in Missouri, Arizona, Nevada, and Maryland.

The production of gas has been enhanced by new drilling technologies, and the extraction losses are estimated at 3 percent of production. Production is hampered by weather conditions such as hurricanes, which stop the production in offshore fields and also result in the possible destruction of transmission pipelines. Hurricane Katrina is one such instance which disrupted the supply. The price decontrol measures by Federal Energy Regulation Commission have also stimulated the supply of gas.

The total proven reserves in the US are approximately 200 trillion cubic feet, which in its current demand pattern, may last for ten years. Furthermore, there are unexplored fields such as the Alaskan fields.