Thursday, August 18, 2022

Independent Fiscal Office Reports Decline In PA Natural Gas Production For 2nd Quarter In A Row For First Time; But An Increase In New Wells Drilled

On August 18, the
Independent Fiscal Office issued its quarterly natural gas production report which shows natural gas production decreased for the second quarter in a row-- a 0.9% decrease in the second quarter and a 0.6% decrease in the first quarter of 2022, compared to last year.

IFO said this is the first time year-over-year production declined for consecutive quarters since the data became available in 2015.

While production has decreased, the first two quarters saw an increase in the number of new shale gas wells drilled or “spud”-- 10.8% increase in second quarter and 10.5% increase in first quarter, compared to last year.

The number of producing wells increased by 4.4 percent.

The IFO said the recent uptick in drilling is likely in response to “elevated natural gas prices.”

[Note: The PA Public Utility Commission reported major natural gas utilities have increased the price for natural gas they provide their customers by as much as 154 percent over the last year.  Read more here.

[Natural gas prices are controlled by international markets that are now heavily affected by the Russian war in Ukraine.  Natural gas prices have spiked to their highest levels in the last 15 years  [Read more here] and have increased 525 percent since June 2020 [Read more here].]

Click Here for a copy of the report.

(Photo: FracTracker Alliance.)


-- Bloomberg: Natural Gas Shortage Fears Has Prices Flirting With Levels Not Seen In U.S. In 15 Years

-- CNN: U.S. Natural Gas Prices Spike To 14-Year High, Prices Up 525% Since June 2020

-- Bloomberg: Asia Natural Gas Prices At Highest Since Russian War Began On Fuel Crunch

-- Bloomberg: European Natural Gas Prices Advance As Energy Crisis Pounds Region

-- TribLive Guest Essay: Time For Pennsylvania’s Real Energy Freedom - Sharon Pillar, PA Solar Center

-- Wilkes-Barre Times Guest Essay: Key To Lower Energy Prices Is Renewable Energy & Storage - Sharon Pillar, PA Solar Center

-- Baker Hughes PA Natural Gas Drill Rig Count Down 2 From Last Week - 23 [8.12.22]

Related Articles:

-- PA PUC: Cost Of Natural Gas Provided By Major Utilities In PA Increased As Much As 154% Over Last Year  [PaEN]

-- PUC: 4 Major Electric Utilities Have Double Digit Electric Price Increases Coming Sept. 1 Caused By Spike In Natural Gas, Energy Costs, Hot Weather  [PaEN]

[Posted: August 18, 2022]  PA Environment Digest

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