December 27, 2013

18% of Nation’s Natural Gas Production to Come from Marcellus Region

According to a recent report by the U.S. Energy Information Administration (EIA), the Marcellus region in Pennsylvania and West Virginia is expected to produce roughly 18% of the total natural gas produced in the U.S. in December.  Only three years ago, the region was producing less than 2 billion cubic feet per day (Bcf/d), but this month it is expected to produce over 13 Bcf/d.  The report notes that although the number of drilling rigs in the area has remained relatively stable in recent months, the increased production has been driven by (1) the efficiency of new wells, (2) increased output from previously shut-in wells or wells that had been operating at reduced volumes, and (3) recent infrastructure upgrades.