Pennsylvania posted a 10 percent increase in natural gas production from shale gas plays in 2016 in a year that was marked by a slow recovery in pricing and well drilling.
There were 5.05 trillion cubic feet of natural gas produced in shale plays in the commonwealth during the year, according to data released Tuesday by the Pennsylvania Department of Environmental Protection. That’s up from 4.6 trillion cubic feet recorded in 2015.
The data showed that the double-digit growth in natural gas production seen in Pennsylvania over the course of past decade of the Marcellus Shale boom has slowed for another year. It was up 13 percent in 2015 compared to the year before, although it’s no surprise: Marcellus and Utica shale production has been heavily impacted by the severe decline in price that started in 2014.
The high-water mark for production in 2016 was in December, when there was 446.5 million cubic feet of natural gas produced. The lowest was in September, with 404.3 million cubic feet produced. The highest increase was in February, with a 17.6 percent jump in production compared to February 2016. The lowest pace of growth was in August, with a 4.5 percent increase.
The downturn forced a number of natural gas producers to cut back on drilling and completion of wells, which in turn had an impact on growth. Last May, a Rice Energy (NYSE: RICE) executive said a study showed that between 50 and 55 rigs were required in the Appalachian basin for it to maintain production levels. At the time, there were only about 35 rigs running in Ohio, West Virginia and Pennsylvania.
According to a Baker Hughes estimate released last Friday, there were 53 rigs in the tristate region, including 32 in Pennsylvania.
