Pa. gas drilling slowed in spring 2024, prices expected to rise this winter

• Rachel McDevitt/StateImpact Pennsylvania
  BioRecent Stories

  

  I report on energy and the environment for StateImpact Pennsylvania at WITF.
  
  My work focuses on responses and solutions to climate change in the state legislature and communities around the state. I trace my interest in these issues back to my time as a Girl Scout and this episode of Rocko’s Modern Life.
  
  I look forward to winter just for the chance to ski a few times each season. I try to keep myself from doom-scrolling on my phone by keeping my hands busy knitting and learning to play the piano.
  
  I grew up in Cambria County, Pa. and graduated from Temple University. I started at WITF just after Christmas in 2014.

 Lindsay Lazarski / WHYY

Natural gas wells in Springville Township, Pa.

Pennsylvania gas drillers cut back on new wells earlier this year.

A new analysis from the state’s Independent Fiscal Office says Pennsylvania companies drilled 63 new wells between April and June–the lowest quarterly number since 2008. The number of new wells has been falling since the third quarter of 2023.

Drillers produced 1,776 billion cubic feet of gas in 2024’s second quarter. That’s a 4.8% decline in growth compared to the same quarter in 2023.

The IFO said the slowdown is likely in response to very low average prices and high inventory levels.

The average Pennsylvania price of $1.48 cents per metric million British thermal units in the second quarter is nearly 2% more than the same time last year, but down from a price of $1.69 per MMBtu between September and April.

Gas futures markets show prices are likely to rise this winter.

The federal Energy Information Administration said it expects higher prices as production slows and exports at new liquefied natural gas terminals increase.

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