# Natural Gas

**Source:** Buckhead Energy Oil & Gas Encyclopedia (https://www.buckheadenergy.com/learn) — canonical: https://www.buckheadenergy.com/natural-gas

Natural gas is a naturally occurring mixture of hydrocarbon gases — primarily methane — produced from underground reservoirs, used as fuel for heating and power generation and as a feedstock for industry.

## What natural gas is and where it comes from
Natural gas is mostly methane, often with heavier gases (ethane, propane, butane — the "natural gas liquids") and impurities that are removed in processing. It forms alongside petroleum and is produced either as associated gas (dissolved in or capping an oil reservoir) or from dry-gas reservoirs that produce gas with little or no oil. Dry-gas shale plays like the Marcellus, Haynesville, and Fayetteville are almost entirely gas.
Gas is measured and sold by volume (Mcf — thousand cubic feet) or energy content (MMBtu), which is why a gas royalty check is quoted differently than an oil check.

## What it means for mineral owners
If your minerals are in a gas-weighted area, your royalty tracks the natural gas price and, importantly, is more exposed to post-production costs — gathering, compression, processing, and transportation — than a typical oil royalty, because raw gas takes more work to make marketable. That is a common reason a gas royalty check declines. Buckhead Energy buys gas-weighted mineral and royalty interests and prices them on the wells, current gas production, and the deductions your lease allows.

## Frequently asked questions

**What is natural gas?**
A naturally occurring mixture of hydrocarbon gases, primarily methane, produced from underground reservoirs and used for heating, power generation, and as an industrial feedstock. It often contains heavier natural gas liquids that are separated in processing.

**What is the difference between associated and dry gas?**
Associated gas is produced along with oil, dissolved in or capping an oil reservoir. Dry gas comes from reservoirs that produce gas with little or no oil — like the Marcellus, Haynesville, and Fayetteville shale plays.

**Why is my gas royalty lower than I expected?**
Gas royalties track the gas price and are more exposed to post-production costs — gathering, compression, processing, and transportation — because raw gas takes more work to make marketable. Those deductions, plus decline and price, explain most gas-royalty shortfalls.

## Related terms
- [What is petroleum?](https://www.buckheadenergy.com/what-is-petroleum)
- [Post-production costs](https://www.buckheadenergy.com/post-production-costs)
- [Oil & gas royalties](https://www.buckheadenergy.com/oil-and-gas-royalties)

_Educational information only, not legal or tax advice. Buckhead Energy is a direct buyer of oil & gas mineral and royalty interests._