Natural gas production in Pennsylvania has jumped back at pre-pandemic levels and continues to climb, along with prices, Natural Gas Intelligence reported this week.
During the second quarter of the year, unconventional production reached 1,851 Tcf; which is up 7,8% when compared to the same period from 2020. In fact, it was the strongest year on year growth for a single quarter in nearly two years; according to data from the Independent Fiscal Office.
The IFO remarked. “The second quarter growth was largely driven by June production; which grew by 10% from June 2020. Year/year growth in quarterly production has now accelerated notably through the first half of 2021.”
On the other hand, unconventional production was up 5,4% also on a year-on-year basis, during the first quarter of 2021; to a total of 1,863 Tcf. According to IFO, the growth during the first half of the year was similar to pre-pandemic levels.
Similarly, between January and May, all Pennsylvania natural gas production was at about 3.150 Tcf; or the closest it’s been to natural gas production in Texas during the unconventional era, according to Energy Information Administration data cited by IFO.
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As natural gas production boosts, also drilling activity
During the same period of time, Texas natural gas production reached 4,118 Tcf; where associated gas volumes have declined because of oil price volatility. Consequently, Texas and Pennsylvania where the undisputed leaders in natural gas production.
As we have reported previously, natural gas prices are rising fast this year, which also elevates production curtailments operators were forced to make during the initial waves of the coronavirus and the demand destruction it caused.
Citing IFO’s data, the average Henry Hub price increased 74,7% year on year, during the 2Q, to a total of $2.88/MMBtu. In that same way, average prices in Pennsylvania were up by 52.2% over the same time to $2.07.
Finally, IFO remarks that in both states the drilling activity increased; the Office remarks that 120 wells were spud during the period; or seven more than the same time last year. Horizontal wells accounted for most part of IFO’s report; while vertical wells drilled to unconventional formations mad up a marginal share.
