•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    EIA: PA natural gas production rose 69% in 2012 despite reduced drilling activity

    US Energy Information Administration

    Source: Pennsylvania Department of Environmental Protection.

    Note: New wells, or well starts, reflect the number of spudded wells, or wells that began drilling during the year. The figure above does not reflect the number of wells drilled, completed, or permitted.

    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. 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.

    Improved drilling and well completion techniques can reduce drilling time and lead to higher production per well. The increased use of horizontal drilling (see graph) and hydraulic fracturing, particularly in the more geologically favorable portions of the Marcellus, allows for more production per well. As operators continue to improve well completion techniques, they are achieving higher initial per-well production rates and boosting overall production.

    Pennsylvania typically releases major production data twice a year for unconventional (horizontal) oil and natural gas wells and once a year for conventional oil and natural gas wells. With rapidly increasing natural gas production in Pennsylvania, EIA has proposed to add Pennsylvania (and at least 11 other states) to its monthly EIA-914 natural gas production survey, which would provide more timely reporting of Pennsylvania's rising production.

    Related Articles

    Energy XXI completes EPL acquisition

    06/05/2014 Energy XXI (Nasdaq:EXXI) (AIM:EXXI) has completed the previously announced acquisition of EPL Oil & Gas (NYSE:EPL) for approximately $2.3 billion, making Energy XXI the largest publicly traded ...

    Zenergy and Apollo Global Management form partnership

    06/03/2014 Zenergy Inc. and funds managed by affiliates of Apollo Global Management LLC have formed a partnership to invest in the acquisition and development of upstream and midstream oil and gas properties.

    ASX-listed Sun buys into Eagle Ford, Austin Chalk

    05/28/2014 Sun Resources has entered into a transaction with Ursa New Ventures LLC to purchase a 50% non-operated working interest in a package of oil and gas leases within the Eagle Ford Shale and Austin Cha...

    Moving Marcellus and Utica natural gas south and west

    05/28/2014 Natural gas production in the Marcellus/Utica region continues to increase sharply. Gas pipeline takeaway capacity out of Marcellus/Utica has been added in fits and starts to date, but the need for...

    UPSTREAM NEWS

    05/07/2014

    More Oil & Gas Financial Articles

    Energy XXI completes EPL acquisition

    Thu, Jun 5, 2014

    Energy XXI (Nasdaq:EXXI) (AIM:EXXI) has completed the previously announced acquisition of EPL Oil & Gas (NYSE:EPL) for approximately $2.3 billion, making Energy XXI the largest publicly traded independent operator on the Gulf of Mexico shelf.

    Zenergy and Apollo Global Management form partnership

    Tue, Jun 3, 2014

    Zenergy Inc. and funds managed by affiliates of Apollo Global Management LLC have formed a partnership to invest in the acquisition and development of upstream and midstream oil and gas properties.

    ASX-listed Sun buys into Eagle Ford, Austin Chalk

    Wed, May 28, 2014

    Sun Resources has entered into a transaction with Ursa New Ventures LLC to purchase a 50% non-operated working interest in a package of oil and gas leases within the Eagle Ford Shale and Austin Chalk formations.

    Moving Marcellus and Utica natural gas south and west

    Wed, May 28, 2014

    Natural gas production in the Marcellus/Utica region continues to increase sharply. Gas pipeline takeaway capacity out of Marcellus/Utica has been added in fits and starts to date, but the need for new southern and western outlets for gas from the region is now evident, and midstream companies are planning long line, bi-directional projects with a combined capacity of more than 9 Bcf/d. In this new series, we consider this next round of pipeline projects out of the Marcellus/Utica.

    UPSTREAM NEWS

    Wed, May 7, 2014

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ