On May 24, the Independent Fiscal Office reported natural gas production in Pennsylvania continued to increase in the first quarter of 2021-- January to March-- increasing 5.4 percent from the first quarter of 2020.

There were 133 new horizontal wells spud in the first quarter of 2021. This figure represents a decrease of 20 wells (-13.1 percent) from the same period in the prior year.

Wells spud in the first quarter represent the first quarter-to-quarter increase in drilling since the first quarter of 2020, as drilling slowed notably in the spring of last year due to record-low prices and the COVID-19 pandemic.

In CY 2020, Pennsylvania recorded the strongest year over-year growth of top-producing states. Pennsylvania’s share of nationwide production was 17.9 percent, an increase of one percentage point from CY 2019 and its largest share on record.

Natural gas prices at the Henry Hub and two major Pennsylvania hubs record significant annual growth in the first quarter of 2021.

The Henry Hub price recorded an increase of 83.4 percent over the prior year, while the Pennsylvania average price increased by 64.4 percent.

This growth was largely driven by prices in the month of February, due to nationwide freezing temperatures, most notably in Texas.

The average Henry Hub price in February was $5.14, while the average price for Pennsylvania was $3.29.

Click Here for a copy of the report.

[Posted: May 24, 2021]

5/30/2021