Thursday, May 21, 2020

IFO: Natural Gas Production Increased 6.8% In First Quarter Over Last Year

On May 21, the Independent Fiscal Office reported natural gas production in Pennsylvania increased 6.8 percent during the first quarter over the same period in 2019, the lowest growth rate in over two years.
First quarter production represents a slight decline from the fourth quarter of 2019,  the first quarter-to-quarter decline in over three years. 
The slowdown in production likely resulted from the combination of several factors:  a persistently low-price environment for natural gas and early impacts of the COVID-19 pandemic.
The top natural gas producing counties are Susquehanna, Washington, Greene, Bradford and Lycoming.
There were 153 new horizontal wells spud in the first quarter of 2020. This figure represents a decrease of 45 wells (-22.7 percent) from the same period in the prior year. 
Despite being an increase from the fourth quarter of 2019, it was the fourth consecutive quarter in which there was a year-over-year decline in new wells spud. 
Over the last six quarters, cumulative growth in new wells spud is -28.2 percent (-4.6 percent per quarter on average).
There were 9,941 total producing wells in the first quarter of 2020, which represents an annual increase of 7.5 percent. Horizontal producing wells, which account for over 99 percent of production, recorded an annual increase of 8.0 percent. 
This is the smallest year-over-year increase in quarterly horizontal producing wells on record. 
Decelerating growth in producing wells is the result of less drilling activity and older wells being shut in or plugged.
[Posted: May 21, 2020]  PA Environment Digest

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