Follow the money. That's what America's drilling rigs are doing.
Even with recent declines in the oil price and a rise in the gas price, the oil to gas price ratio remains above a stunningly high 35 to 1, making oil financially attractive and dry gas not so. It is no surprise then that the latest Baker Hughes count of drilling rigs show the total rig count near record highs, a continued increase in rigs drilling for oil, and a decrease in those drilling for gas.
Though Pennsylvania has seen a decline in gas drilling rigs working here with the collapse of the gas price, Baker Hughes reports that 95 drilling rigs continue to operate in the Commonwealth. In America, a total of 598 were drilling for gas, down considerably from more than 800 a year ago.
Currently, Pennsylvania has approximately 1 out of 6 of America's gas drilling rigs, an impressive number. It is also indicates both that the Marcellus Shale has some of the nation's lowest production costs and that Pennsylvania is a keystone to America's natural gas production.
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