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Permalink Reply by tc on February 17, 2015 at 6:58

This article also shows why for NG prices to rise it needs the Marcellus to cool down.  It talks about Washington county having the 3rd highest NG production in the state, but it also produced around 2 million barrels of condensate in 6 months, which made those NG wells much more profitable.  Big NG producing wells will get drilled at almost only NG price, but the lower tiered wells need NGLs and higher priced NGLs to really be profitable.

DEP: Shale producers hit 4 trillion cubic feet of gas in 2014

In yet another record-setting six months, Pennsylvania’s unconventional gas producers pulled more than 2 trillion cubic feet of gas out of the ground during the second half of 2014, according to new data released by the state Department of Environmental Protection today. That brings last year’s total to 4 tcf.

About 30 percent of the state’s gas production came from southwestern Pennsylvania during the most recent reporting period. Washington County was the third most prolific in the state, following Susquehanna and Bradford in the northeast.

In terms of oil and natural gas liquids production, however, this region continued to reign supreme.

As it has in all previous reporting periods, Range Resources led the state in the production of oil and natural gas liquids during the second half of 2015. The operator produced nearly 2 million barrels of condensate during the reporting period, nearly all of it from Washington County. Hilcorp Energy Co., which is responsible for the considerable increase in liquids in Mercer County, was a distant second, followed by Noble Energy Inc., Rex Energy, and Chevron.

The top five producers in the state — Chesapeake Energy, Cabot Oil & Gas, Range Resources, Southwestern Energy, and EQT Corp, in that order — did not change from the first six months of 2014.

Of the top 10 best producing wells during the reporting period, as measured by daily flow rates, Cabot Oil & Gas had eight, all in Susquehanna County. Chesapeake and Warren E&P each had one in Wyoming County.

http://powersource.post-gazette.com/powersource/companies-powersour...

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Permalink Reply by Skip Peel - Mineral Consultant on February 17, 2015 at 8:48

As the economics for oil and liquids become less favorable, they improve for natural gas. The downward pressure on the cost of services and supplies make dry gas wells cheaper to drill and complete.

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