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On September 5, the Independent Fiscal Office reported second quarter natural gas production in Pennsylvania dropped to its lowest level since the third quarter of 2020.
Second quarter production was 1,776 billion cubic feet, a drop from 1,940 billion cubic feet from the fourth quarter of 2023.
The number of new wells drilled in the second quarter-- 63-- dropped to the lowest number of wells drilled since the first quarter of 2008.
Separately, on September 6, Baker Hughes reported the number of shale gas drilling rigs in Pennsylvania dropped by two to 16, down from 21 just two weeks ago-- an almost 25% drop. Read more here.
"Drillers have likely cut back in response to very low average [natural gas] prices and high [gas] inventory levels," the report says.
"The average Pennsylvania spot hub price was $1.48, an increase of $0.03 (1.9%) from the prior year. Regional and national prices have been constrained in recent quarters due to unusually high storage levels."
Click Here for a copy of the report.
As a result of the drop in natural gas prices, the Independent Fiscal Office issued a report on the latest projections of revenue from the Act 13 Shale Gas Drilling Impact Fee in June showing another drop in calendar 2024 revenue to from $165 million to $170 million-- a nearly $114 million decrease from 2022.
The least revenue collected from this fee was $146.3 million for calendar 2020.
The IFO reported calendar 2023 revenue was $179.1 million, down over $100 million from the record revenue in 2022 of $278.9 million.
This drop of an estimated $213 million in revenue over the two years leaves a significant hole in state and local budgets from impact fee revenue. Read more here.
PA Oil & Gas Industry Public Notice Dashboards:
-- PA Oil & Gas Weekly Compliance Dashboard - Aug. 31 to Sept. 6 - Mystery Oil Leak Into Allegheny River; Holes In Shale Gas Casing; 65 Days Late In Plugging Conventional Well [PaEN]
-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - September 7 [PaEN]
-- DEP Posted 48 Pages Of Permit-Related Notices In September 7 PA Bulletin [PaEN]
-- DEP Permitting Efficiency: 20,595 Permits Since 11/2023; Decisions On 16,745; Zero Currently Eligible For PAyback Did Not Meet Decision Deadlines; No Application Fees Refunded [9.6.24]
Related Articles This Week:
-- Abandoned Well Citizen Expert Laurie Barr, University Of Pennsylvania Prof. Jennifer Wilcox Recognized On The Grist 50 List [PaEN]
-- Sen. Comitta: New PUC Pipeline Safety Regulations To Be Published As Final This Month For Public Utility Hazardous Liquid Pipelines [PaEN]
-- Environmental Health Project: CNX Resources Claims Shale Gas Drilling Poses No Public Health Risks Are ‘Misleading, Irresponsible, Dangerous’ [PaEN]
-- Cecil Township Proposes 2,500 Foot Setback Ordinance From Oil & Gas Infrastructure For Sept. 4 Hearing In Washington County [PaEN]
-- Center For Coalfield Justice Hosts Sept. 24 Program In Washington County On Increasing Setbacks From Oil & Gas Infrastructure [PaEN]
-- US Dept. Of Interior Approves $76.4 Million To Plug Abandoned Conventional Oil & Gas Wells In Pennsylvania; 1,234 Violations For Abandoning Conventional Wells In Last 20 Months [PaEN]
-- Environmental Defense Fund, Moms Clean Air Force To Hold Public Meetings In 3 Northwest PA Counties On A Project To Test New Methods Of Locating Abandoned Conventional Oil, Gas Wells [PaEN]
-- Source Of 19-Day-Old Oil Discharge Into Allegheny River In Venango County Still A Mystery; Recreators Asked To Avoid The Area [PaEN]
-- Baker Hughes: PA Natural Gas Drilling Rigs Dropped 2 More Last Week To 16; Nearly 25% Drop In 2 Weeks
-- DEP’s Oil & Gas Workload Report shows during the week ending August 30, DEP received Zero new permit applications for conventional wells and Three new permit applications for shale gas wells.
-- Independent Fiscal Office Reports 2nd Quarter PA Natural Gas Production Dropped To Lowest Level Since 2020; Number Of PA Drilling Rigs Drop By Nearly 25% In 2 Weeks As A Result Of Drillers Trying To Raise The Price Of Gas [PaEN]
-- Center for Coalfield Justice Blog: Update On Underground Longwall Coal Mining In Greene, Washington Counties; Next DEP Report On Longwall Impacts Due… Soon [PaEN]
-- PUC Invites Comments On Accelerated Removal, Replacement Of Older Plastic Pipe In Natural Gas Distribution Systems [PaEN]
NewsClips This Week:
-- Post-Gazette - Anya Litvak: PA To Receive $76 Million To Plug Hundreds Of Abandoned Conventional Oil, Gas Wells; DEP Holds Workshops On New Plugging Grants
-- Earthworks: Radically Misleading - Gov. Shapiro’s Dangerous Partnership With CNX Resources Nurts Communities, Ignores The Facts
-- Inquirer - Will Bunch: Everything You Know From TV About Pennsylvania And Fracking Is Wrong
-- Reuters: Anadarko, Other Natural Gas Companies Defeat Federal Lawsuit In PA Over Royalty Payments
-- Marcellus Drilling News: UGI Seeks To Temporarily Store LNG Gas In Trailers In Scranton Suburb During Winter [PDF of Article]
-- Scranton Times: UGI Claims Dickson City Boro Has No Jurisdiction Over Plan To Store LNG Gas In Trailers
-- Erie Times Guest Essay: Erie Manufacturer & Business Assn. Questions Biden’s Pause On Permits For New LNG Gas Export Facilities [Court Ended Pause July 1; PA Shale Gas Desperate To Sell Gas To Our Competitor China To Support Their Economy, Will That Help PA Manufacturing? ]
-- PennLive Guest Essay: Energy And Labor Are Both Needed To Power PA’s Future - By Marcellus Shale Gas Coalition & PA State Building Trades Union PA Shale Gas Desperate To Sell Gas To Our Competitor China To Support Their Economy, Will That Help PA Manufacturing?]
-- US EIA: North America’s LNG Gas Export Capacity On Track To More Than Double By 2028
-- Utility Dive: Ratepayer Advocates Urge PJM To Include Power Plants With ‘Reliability-Must-Run’ Contracts In Next Electricity Auction; Would Have Lowered Overall Cost Of Last Auction By $5 Billion
-- Utility Dive: Reregulation? How Utilities And States Are Responding To PJM’s Record Electricity Capacity Prices [Part 1 of 3]
-- Utility Dive: PJM Considers Fast-Track Review For Shovel-Ready Electric Generation Projects [Part 2 of 3]
-- Utility Dive: Increasing Capacity Of Existing Generation, Batteries, Demand Response May Offer Near-Term Responses To Record PJM Electricity Auction Prices [Part 3 of 3]
-- Bloomberg: High Natural Gas, Other Fossil Fuel Use Highlights US Challenge To Clean Energy Transition
-- Bloomberg: European Natural Gas Prices Approach Oversold Zone After 3-Day Sell-Off
-- Reuters: US LNG Gas Export Dominance Tested As Europe’s Demand Wilts
-- Reuters: US Regulators OK First Step To Start New Louisiana LNG Gas Export Facility
-- Bloomberg: DOE Approves New Fortress Energy LNG Gas Export Facility In Mexico
-- US EIA: North America’s LNG Gas Export Capacity On Track To More Than Double By 2028
-- The Guardian: How An LNG As Export Facility Project Along The Gulf Coast Is Upending Residents’ Lives
[Posted: September 5, 2024]
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