Friday, March 22, 2013

Pennsylvania's Gas Production Jumps 69% But Gas Wells Drilled Fall 33% In 2012

Last year was an extraordinary year for natural gas in the USA, and Pennsylvania was a main reason.  America set a new record for annual gas production and the gas price collapsed to about $2.73.  Neither would have happened without a stunning jump in Pennsylvania gas production.

Pennsylvania's gas production jumped 69% and averaged 6.1 billion cubic feet per day during 2012.  That was an increase of 2.5 Bcf/d over the 3.6 Bcf/d average during 2011 and helped to shape 2012.

As big as Pennsylvania's production was in 2012, its daily production today is even higher in Pennsylvania, probably more than 7 Bcf/d.  And production in the whole Marcellus region is now at 9 Bcf/d and on its way to 10 Bcf/d.

Though Pennsylvania's gas production soared in 2012, the number of gas wells drilled plunged by 33% when compared to 2011.  A gas price below $3 will do that.  But that 2012 low, low price is already gone, at least for now and likely the remainder of 2013.

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