Pennsylvania plays key role in growth of US natural gas industry

Pennsylvania is the nation’s second-largest natural gas provider, according to an Independent Fiscal Office (IFO) report.

The state’s production volume grew 10.8 percent this year, 2 percentage points behind Texas.

For at least the past 13 consecutive quarters, Pennsylvania has experienced quarter-over-quarter increases in shale production.

The state’s top-producing counties from the third quarter of 2018 to the third quarter of 2019 were Susquehanna, Washington, Greene, and Bradford. Collectively these counties comprised more than two-thirds of the state’s production.

Nine of the top 10 natural gas producing counties registered production gains.

Growth in natural gas production, consumption, and exports was concentrated in 2018 in the Appalachian, Permian, and Haynesville regions, according to Energy Information Administration data.

The United States set records for natural gas production growth with Pennsylvania experiencing the largest year-over-year increase from 2018. Production increased by 2 billion cubic feet daily.

IFO’s report includes information on the increase in drilling and production activity since 2012. The number of producing wells grew 16.1 percent per annum from 2012 to 2018, while production volume increased at an average rate of 17.1 percent per annum.

In 2018, the average production per well spiked at a growth rate of 30.7 percent. This growth is forecasted to have slowed to a 12.5 percent increase this year.

Last year’s increase is attributable to higher natural gas prices and new pipeline capacity. Both prices and pipeline capacity have since decreased.

Production volume is forecasted to grow 11.2 percent, and the number of producing wells will grow 6.4 percent this year.

IFO forecasts that, in 2019, production volume will reach 6,800 billion cubic feet, producing wells will reach 9,300, and average production per well will reach 1,874 million cubic feet. The inventory of well is forecasted to decrease to 1,376.

The Pennsylvania Department of Environmental Protection provided data to IFO for its report.