In the past we’ve been pretty critical of the Pennsylvania Independent Fiscal Office (IFO). It claims to provide revenue projections for use in the state budget process along with “impartial and timely analysis of fiscal, economic and budgetary issues to assist Commonwealth residents and the General Assembly in their evaluation of policy decisions.” It’s been our observation the IFO is populated with partisan Democrats. However, we have to acknowledge lately their analysis work, at least with regard to the Marcellus industry, has been pretty accurate (see PA Independent Fiscal Office Predicts Impact Fee Revenue for 2016). The IFO has just released another report–this one analyzing the first six months of monthly Marcellus gas production data issued by the state Dept. of Environmental Protection (DEP), comparing it with previous months and years (full copy of the IFO report embedded below). What’s obvious from the numbers is this: PA’s shale drillers are in the process of completing previously drilled but uncompleted wells (called DUCs), drawing down the number of DUCs available. The conclusion is inescapable: More drilling of new wells is on the way in PA in 2016…
In the past we’ve been pretty critical of the Pennsylvania Independent Fiscal Office (IFO). It claims to provide revenue projections for use in the state budget process along with “impartial and timely analysis of fiscal, economic and budgetary issues to assist Commonwealth residents and the General Assembly in their evaluation of policy decisions.” It’s been our observation the IFO is populated with partisan Democrats. However, we have to acknowledge lately their analysis work, at least with regard to the Marcellus industry, has been pretty accurate (see 