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On February 25, the Independent Fiscal Office reported 2024 natural gas production decreased by 1.8% over 2023 and the Pennsylvania spot hub price of natural gas increased 19.1% over the last year.
The IFO said, "Prior to the fourth quarter, average prices were historically low for nearly two years as supply outpaced demand.”
“The fourth quarter price was bolstered by December ($2.70), as prices increased in response to winter weather demand.”
"Preliminary data show that average prices have increased dramatically in 2025 so far.
“The average Pennsylvania spot price for January was $3.81, an increase of 36.6% from 2024 and the highest monthly price since December 2022."
The IFO also reported a 26.4% drop in the number of new wells drilled by the natural gas industry in 2024.
The IFO said, "There were 310 wells drilled in 2024, less than any year since 2008."
The IFO pointed out, "If the average monthly Henry Hub price had exceeded $2.25 for the year, then that would increase estimated Impact Fee collections by roughly $30 million" [for Calendar Year 2025].
The Public Utility Commission already set the Act 13 Impact Fee for 2024 which will result in a dramatic decline in revenue again this year.
The Independent Fiscal Office estimates Act 13 fee revenue from 2024 fees are estimated to be $163.8 million, down from $179.6 million in 2023 and down from the record $278.9 million in 2022. Read more here.
That’s a drop of $214.4 million in shale gas industry support since 2022.
Click Here for a copy of the IFO Natural Gas Quarterly Update report.
NewsClip:
-- Marcellus Drilling News: Natural Gas Price Up 150% From 1 Year Ago, Not Coming Down Soon [PDF of Article]
PA Oil & Gas Industry Public Notice Dashboards:
-- PA Oil & Gas Weekly Compliance Dashboard - Feb. 22 to 28 - 11 More Abandoned Shale Gas Wells; 12,600 Gallon Wastewater Spill; Failure To Comply With Shale Well Plugging Order [PaEN]
-- What The Shale Gas Industry Is Leaving Behind: Coterra Energy Spills 12,600 Gallons Of Wastewater From Shale Gas Well Pad In Bridgewater Twp., Susquehanna County [PaEN]
-- What The Shale Gas Industry Is Leaving Behind: DEP Issues Violations For Abandoning 11 More Shale Gas Wells; Shale Gas Well Owner Fails To Comply With Plugging Order [PaEN]
-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - March 1 [PaEN]
-- DEP Issues Air Quality Permit For Nova Energy LLC Cryptocurrency Data Center In Venango County [PaEN]
-- DEP Posted 66 Pages Of Permit-Related Notices In March 1 PA Bulletin [PaEN]
Related Articles This Week:
-- Delaware Currents: Federal Judge Dismisses Wayne County Land & Mineral Group Lawsuit Against Delaware River Basin Commission Over Fracking Ban [PaEN]
-- Marcellus Drilling News: Federal Judge Tosses Landowner Lawsuit Against Delaware River Basin Commission For Fracking Ban [PDF of Article]
-- Protect PT Hosts In-Person March 9 Living Near Shale Gas Workshop In Westmoreland County [PaEN]
-- Penn State, Project InnerSpace Report: Leverage Oil & Gas Workers To Generate Enough Geothermal Energy To Meet 100% Of Pennsylvania's Electricity, Heating, Medium Industrial Process Needs [PaEN]
-- Independent Fiscal Office Reports 2024 PA Natural Gas Production Down 1.8%, PA Natural Gas Price Up 19.1% In Last Year [PaEN]
-- Guest Essay: Significant Electricity Load Growth Can Be Accommodated Without A Stampede To New Natural Gas Generation Just By Increasing Efficiency At Existing Power Plants - By John Quigley, Senior Fellow, Kleinman Center For Energy Policy [PaEN]
-- Beaver County Marcellus Awareness Community Launches Eyes On Air Webpage To Provide Real-Time Air Quality For Beaver County [PaEN]
-- PA Master Well Owner Network, Penn State Extension Updates Online Drinking Water Results Interpretation Tool [PaEN]
-- Senate DEP Budget Hearing Focuses On Permit Reviews; Governor’s Lightning Energy Plan; Bringing On More Baseload Power Generation; Firing ‘Intractable’ DEP Employees [PaEN]
-- DEP Budget Testimony: DEP Moving At The Speed Of Business; Lightning Energy Plan; Most Inspections; Commitment To Environmental Justice [PaEN]
NewsClips:
-- Inquirer - Frank Kummer: Bucks County Residents Fear Energy Transfer/Sunoco Pipeline Leak Could Be More Widespread Than Company Acknowledges; Class Action Lawsuit Expected To Be Filed
-- Courier Times: Energy Transfer/Sunoco Disputes Findings, Recommended Fixes Of Federal Pipeline Regulator In Jet Fuel Pipeline Leak Investigation In Bucks County
-- WHYY: Bucks County Residents Call For Shutdown Of Energy Transfer/Sunoco Pipeline [After 16 Month Leak Contaminated Wells]: ‘Our Lives Have Been Upended’
-- Post-Gazette - Anya Litvak: A Geothermal Push In Pennsylvania Enlists Oil & Gas Industry: ‘Hot Everywhere Underground’
-- Marcellus Drilling News: PA Study Promotes Geothermal With Aim To Kill Off Shale Energy [PDF of Article]
-- Washington & Jefferson College Contributes To Penn State, Project Innerspace Geothermal In PA Report
-- Marcellus Drilling News: Natural Gas Price Up 150% From 1 Year Ago, Not Coming Down Soon [PDF of Article]
-- PUC Holds March 18, March 19 Hearings On Proposed Pike County Light & Power Company Rate Hikes-- Natural Gas (44.4%), Electric (11.6%)
-- UGI Natural Gas Costs Will Increase 7% On March 1
-- MCall: UGI Gas Customers To See 7% Increase In Natural Gas Costs Starting March 1
-- ABC27: Sen. Muth Looks To Keep Radium, Other Oil & Gas Waste Out Of Drinking Water
-- WHYY: Ruptured Gas Line Prompts Evacuations Near Philly’s Central High School
-- MCall Guest Essay: PA Will Benefit From Tighter Methane Emissions Standards For Oil & Gas Industry - By John Walliser, PA Environmental Council
-- AP: President’s Tariffs On Mexico, Canada To Start March 4 [Will Impact United Refining In Warren That Uses Canadian Oil ]
-- Forbes: How LNG Gas Exports Will Define US Energy Policy Under New President; US Gas Market May Become More Vulnerable To Price Volatility In Global Gas Market Straining States That Rely On Natural Gas For Power Generation
-- Bloomberg: Federal Pipeline Safety Agency’s Senior Leaders Exit Amid Presidential Push [PHMSA]
-- Reuters: Congress Kills Biden Era Methane Fee On Oil, Gas Producers
-- Bloomberg: President Wants Canada’s Keystone XL Oil Pipeline Built ‘Now;’ Pipeline Developer Says It Has ‘Moved On’
[Posted: February 25, 2025]
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