Pennsylvania natural gas production rose 69% in 2012despite reduced drilling activity

 

Natural gas production in Pennsylvania averaged 6.1 billion cubic

feet per day (Bcf/d) in 2012, up from 3.6 Bcf/d in 2011, according

to Pennsylvania Department of Environmental Protection

(DEP) data released in February 2013. This 69% increase

came in spite of a significant drop in the number of new natural

gas wells started during the year.

Several factors contributed to the production increase, according

to the EIA. While accelerated drilling in recent years (primarily

in the Marcellus Shale formation) significantly boosted Pennsylvania's

natural gas production, increases were restricted by the

state's limited pipeline and processing infrastructure. This created

a large backlog of wells that were drilled but not brought

online. As infrastructure expanded, these wells were gradually

connected to pipelines, sustaining natural gas production increases

through 2012 despite the decline in new natural gas well

starts. Data from DEP show that a significant portion of wells

that began producing in 2012 were drilled earlier.

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Permalink Reply by Frank on March 28, 2013 at 15:07

I've followed this graph for a few years in the EIA weekly report.  Just wait until those pipelines in headline of this weeks report come on line.  Marcellus is cutting off the old Texas Eastern system from here.  It's no doubt why our production falls while theirs gains.  Low transport cost to a starving market.  We need to chill it down for export, or convert it into gasoline near here to get a drilling rig or two back.  Henry Hub might loose the benchmark trading spot in a few years.

 

Permalink Reply by adubu on March 28, 2013 at 15:56
Frank-- they may give heating oil some major competition
Permalink Reply by Bobi Carr ("parker") on March 28, 2013 at 16:06
Permalink Reply by Frank on March 28, 2013 at 16:54

That is evident in the chart above.  We curtail for price improvements to offset production development close to the flame.  We need an outlet for Haynsville Gas.  Traditional highways of transport are getting some new lanes merging into the road closer to the demand.  We need an outlet to produce more in the next five years or will sit on a undefined underground storage while unit wells wisp along, except for Exco produced units.

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