Wednesday, September 3, 2025

Independent Fiscal Office Reports 2nd Quarter Increase In Natural Gas Production, New Wells And 60.8% Increase In Price Of Gas Over Last Year

On September 3, the Independent Fiscal Office
reported in the 2nd Quarter PA Natural Gas production was up 9%, number of new wells increased 66.7% and the price of natural gas increased 60.8% over the second quarter of 2024.

Production

Production volume totaled 1,954 billion cubic feet, an increase of 9.0% from the prior year. This is the strongest annual growth rate for a quarter since 2019 Q3. Production for the year (through June) is up 5.9% compared to the prior year.

New Wells

There were 105 new horizontal wells spud [drilled], an increase of 42 new wells (66.7%) from the prior year. This was the first annual increase in new wells for a quarter since 2022 Q3 and the most wells drilled in a quarter since 2023 Q4. 

Preliminary data for July and August show that new wells increased by 52% from the same period in CY 2024. 

The increase in drilling is likely related to very strong year-to-date spot prices.

Price Of Gas

The average Pennsylvania spot hub price was $2.38, an increase of $0.90 (60.8%) from the prior year despite a sharp decline from the first quarter. 

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

According to data from the U.S. Energy Information Administration, national inventory increased steadily during 2025 Q2, as storage levels at the end of June were 67% higher than the end of March. 

Higher storage levels generally apply downward pressure on average prices.

Click Here for a copy of the report.

Resource Links:

-- Independent Fiscal Office: Residential Electricity Bills ‘Begin Surge:’ Natural Gas Prices Up 71%, PJM Prices Up Due To A.I. Data Center Demand  [PaEN]

-- Utility Dive: Rising Natural Gas Prices Expected To Drive Up Electricity Costs

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - Aug. 30 to Sept. 5 - 2nd Township Declares Disaster Emergency; New Shale Gas Well Casing/Cement Failure; 100 Conventional Well Owners Get Violations For Abandoning Wells  [PaEN]  

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - Sept. 6 [PaEN] 

-- DEP Posted 55 Pages Of Permit-Related Notices In Sept. 6 PA Bulletin  [PaEN]  

Related Articles This Week:

-- Springhill Township Becomes 2nd Township To Declare Disaster Emergency After Residents Were Impacted By A Gas Related Water Contamination Event In Greene County  [PaEN]

-- Petition To Extend Setbacks From Shale Gas Wells May Be Back On The Table At Environmental Quality Board Sept. 9 If Motion Succeeds  [PaEN]

-- PA Senate Republicans Introduce Bill To Eliminate Need For Any State Permits, Any Public Review Of Permits Before Construction Of A.I. Data Centers, Related Power Plants  [PaEN] 

-- DEP Oil & Gas Advisory Board Meets Sept. 11 On New Civil Penalty Procedure; Rulemaking Petition To Process/Store Oil & Gas Wastewater From Anywhere On Every Shale Gas Well Site  [PaEN]

-- DEP Issues New Order To Eureka Resources To Remove Oil & Gas Wastewater From Its Bradford County Facility In 90 Days; Imposes Penalty $6,100 For Not Complying With January Order; Updates On Other Facilities  [PaEN]

-- EPA Invites Comments On Draft Permit Renewal For A Columbia Gas of PA Oil & Gas Wastewater Injection Well In Beaver County; Virtual Hearing Oct. 6 [If Requested]  [PaEN] 

-- Susquehanna River Basin Commission Meets Sept. 24 To Consider Annual Budget, Water Withdrawal Requests, Including 11 For Shale Gas Development, 2 Power Plants  [PaEN]

-- DEP, Nonprofits File Consent Decree In Federal Court Requiring Beaver County Plastic Pellet Maker To Pay $2.6 Million In Penalties, Restoration Funds For Repeated Water Pollution Violations  [PaEN] 

-- Independent Fiscal Office Reports 2nd Quarter Increase In Natural Gas Production, New Wells And 60.8% Increase In Price Of Gas Over Last Year  [PaEN]

-- PUC Chairman: Model Tariff For Connecting A.I. Data Centers To Local Electric Grid To Be Published For Comment By End Of September  [PaEN]

-- In Case You Missed It -- A.I./Data Center Articles & NewClips From Last Week -  September 8  [PaEN] 

NewsClips:

-- Post-Gazette - Anya Litvak: Greene County Townships Declare Disaster Emergency Three Years After EQT Frack Job [PDF of Article

-- PennLive - John Beauge: 8,000 Gallons Of Oil & Gas Wastewater Recovered From Eureka Resources Spill In Williamsport: DEP

-- Williamsport Sun: DEP Files Order Against Eureka Resources Bradford County Oil & Gas Wastewater Treatment Facility To Remove Waste  [PDF of Article]

-- Middle Susquehanna RiverKeeper: Five Observations About The Eureka Resources Oil & Gas Wastewater Spill In Williamsport As We Continue To Monitor Things 10 Days After The First Report 

-- TribLive: Upper Burrell Twp Sets Land Use Regulations For Oil & Gas Wastewater Injection Wells In Westmoreland  

-- TribLive: Eastern Gas Transmission & Storage Eyes New Natural Gas Pipeline In Murrysville, Westmoreland County 

-- Delco.Today: Hazard vs. Economy: Delaware River LNG Gas Export Terminal Back In Play  [PDF]

-- Tribune-Democrat: Cambria County Transit To Complete Switch To Compressed Natural Gas In Urban Fleet In 2027  

-- PennEnvironment, Three Rivers WaterKeeper Settle Plastic Pollution Lawsuit Against Styropek USA In Beaver County

-- Pittsburgh Business Times: State Announces $2.6 Million Proposed Consent Agreement Over Plastic Pollution At Closed Plant

-- Western PA Conservancy: Restoring Little Arnot Run From Severe Impacts Of Oil, Timber Industries In Warren County 

-- Utility Dive: Rising Natural Gas Prices Expected To Drive Up Electricity Costs 

-- Altoona Mirror: Legislative Study Identifies 382 Potential Mine Water Geothermal Sites In PA  [PDF of Article]

-- WITF: PA Lawmakers Look Underground For Geothermal Alternative To Cool A.I. Data Centers

-- Marcellus Shale Coalition: Shale Insight Industry Conference To Be Held Sept. 16-18 In Erie

[Posted: September 3, 2025]  PA Environment Digest


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