Monday, February 25, 2013

It's No Ponzi Scheme: PA Reaches 2 Trillion Cubic Feet Of Gas Production

A major reason why 2012 was another record year for US natural gas supply is roaring production in Pennsylvania.  Pennsylvania produced a startling 2 trillion cubic feet or 6.2 billion cubic feet per day during 2012.  The Commonwealth's production accounted for 9% of the nation's gas, up from 1% in 2007.

Amazingly, those already remarkable numbers would be about 20% higher, had all the gas wells drilled in Pennsylvania had been connected to pipelines in 2012.

The record amounts of natural gas have crashed the price of natural gas and saved the 51% of families heating with natural gas about $500 and still more in lower electricity bills.  Low natural gas prices have also caused a substantial shift from coal-fired generation to natural gas power plants, with the result that carbon emissions and toxic air pollution have plunged.  These savings have been welcome relief to median income families and vital to poor households.

Shale production in Pennsylvania began in 2007, and 6 full years of production has now taken place.  This year, 2013, will be the seventh for the shale boom in Pennsylvania and the tenth, eleventh, or more in Texas, Louisiana, Arkansas and other places.

The sustained, enormous production numbers, despite low gas prices, show that the shale boom is no Ponzi Scheme.


  1. But what will it cost to store the waste? What about inspecting the current wells and the spent wells? What about replacing the well casings that only last between 25 -100 years?
    Who is going to pay for the replacement water and decontaminating from any accidents or spills? What will it cost to rebuild all of the roads and restore the welpads after the well is spent especially in state parks and stae forests? What about the damage and impact from all of the green house gases both CO2 and methane that escapes combustion and shipment? What about the adverse health effects to rig workers, animals and residents of the gas play areas? What do all these costs add up to and who is going to pay for them? No one is investigating and tabulating these costs.

  2. In private, Mr. Eads acknowledged that his pitches involved a bit of bluster.

    “Typically, we represent sellers, so I want to persuade buyers that gas prices are going to be as high as possible,” Mr. Eads said. “The buyers are big boys — they are giant companies with thousands of gas economists who know way more than I know. Caveat emptor.”

    After the Boom in Natural Gas,