The collapse in gas prices led to a significant decline in gas drilling rigs in Pennsylvania, but gas production grows, as drilling new wells continues and more gas wells are connected to pipelines. The good folks at MarcellusGas.org (www.marcellusgas.org) report that there are now 11,494 Marcellus wells permitted and 6,675 shale wells that are drilled or producing.
Both the number of permitted gas wells and active (drilled and producing) wells in Pennsylvania have jumped in the last two years, despite an average gas price of $2.77 during 2012. Amazing.
With respect, there are nowhere near 6,675 producing shale well in PA. As of the last DEP published report in August there were only 2,877 wells reporting production. Also the number of permits is meaningless as a huge majority of them have expired and are double counts. The true number of valid permits likely to be drilled is a fraction of 11,000. Marcellusgas org passes on DEP data which is (to be generous) poor and out of date.
ReplyDeleteFYI: Marcellusgas.org is using PA PUC data, not PA DEP data, for its "active" shale well numbers
DeleteCorrection: You misread the report. The 6,675 was drilled or in process, not producing.
ReplyDelete