Independent Fiscal Office Reports First Quarter PA Natural Gas Production Increased 2.9% Over 1st Quarter 2024; Price Of Natural Gas Increased 218% Over 1st Quarter 2024

On June 4, the Independent Fiscal Office reported first quarter natural gas production increased 2.9% over the first quarter of 2024 and 3.8% over the fourth quarter of 2024.

The price of natural gas in the first quarter ($3.69) increased 218% over the first quarter of 2024 ($1.69) and 83.5% from the fourth quarter 2024 ($2.01) to the first quarter of 2025 ($3.69).

"Prices in the first quarter were boosted by tight inventory, as nationwide underground storage levels ended March at a three-year low. 

"According to storage data from the U.S. Energy Information Administration, national inventory fell by nearly 50% from the end of 2024 Q4 to the end of 2025 Q1, as colder-than-normal temperatures resulted in increased consumption of natural gas."

“Preliminary data for 2025 Q2 suggest that the Pennsylvania average hub price will be $2.52,” still 49% higher than the first quarter of 2024.

The number of new shale gas wells drilled decreased 7% over first quarter 2024, the 9th consecutive quarter with a year-over-year decline.

However, "preliminary data for April and May show that new wells increased by 71% from the same period in CY 2024. The increase in drilling is likely related to very strong spot prices through April."

The production reported by the IFO includes only horizontal gas wells, not conventional gas wells, because horizontal gas wells produce 99% of the total production in Pennsylvania.

Click Here for a copy of the 1st Quarter report.

NewsClips:

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-- Utility Dive: US DOE Orders Constellation To Delay Retiring 760 MW Eddystone Peaking Natural Gas Power Plant In PA To Ease PJM ‘Emergency’ [PJM Had Earlier Approved The Plant Shutdown Saying There Was No Grid Reliability Risk] 

-- AP: US DOE Keeps Aging PA Power Plant Online Through Summer

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[Posted: June 4, 2025]  PA Environment Digest