PA IFO Report – 3Q NatGas Production Up 6%, Avg Price Up 187%
Yesterday the Pennsylvania Independent Fiscal Office (IFO) released their latest quarterly Natural Gas Production Report for July through September 2021 (full copy below). We have some encouraging news to share, along with some not-so-encouraging news. In 3Q21 the number of wells spud (begun to be drilled) was 111 new shale wells, the same number as in 3Q20, down from 2Q21’s 120 spud wells. On the positive side, gas production increased by 6.8% in 3Q21 over 3Q20. In fact, 3Q21 saw the highest quarterly production in the state for all time!
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The environmental radicals on the left continue their push to defeat the construction of an $800 million liquefaction plant in Wyalusing (Bradford County), PA, meant to liquefy and ship LNG to a planned facility on the Delaware River, for exporting to other countries. The left’s latest ploy? Antis are proclaiming a special permit issued during the Trump administration that allows LNG from the Wyalusing plant to be shipped via special rail cars is about to expire at the end of this month and almost certainly won’t get renewed. In addition, antis have stirred up some of the liberal locals near the port facility where the LNG would get safely loaded onto ships. It is a continuing, coordinated two-pronged attack against the project.
The front-month futures contract for natural gas trading at the Henry Hub in southern Louisiana (called the NYMEX) has taken a pretty serious dip in recent days, falling by $0.28 yesterday to just $4.79. However, the physically traded spot price that natgas is fetching at trading hubs near Boston and New York City was through the roof yesterday. And although the spot price in places like northeastern PA (Tennessee Gas Zone 4 Marcellus) and the Tri-State corners area (Eastern Gas South) are down a bit from a month ago, those prices are relatively high too. What’s going on with the price of natgas?
Yes, we as a collective society have lost our collective heads. So-called Critical Race Theory (CRT) appears to have brainwashed large swaths of our great land into seeing racism in every interaction and under every rock, tree–and now, even under the ground. Pipelines are racist! That’s the cry of the hard left, which unfortunately now controls our federal government. Three weeks ago we told you the Biden EPA had launched a film flam “investigation” (i.e. witch hunt) into a small pipeline aimed at delivering natural gas to a facility in Brooklyn so the gas can be liquefied and carted around New York City to prevent gas outages (see 
According to the U.S. Energy Information Administration’s (EIA) latest Monthly Electric Generator Inventory, between 2022 and 2025 (the next three years) some 27.3 gigawatts (GW) of new natural gas-fired capacity is scheduled to come online in the United States. Illinois, Michigan, Ohio, and Pennsylvania–states with pipeline access to natural gas from the Marcellus and Utica shale plays–account for a combined 43% of the natural gas-fired capacity planned to come online. Yes, our molecules will feed almost half of all new gas-fired power plants!
NATIONAL: Top shale producers remain bullish on NGL prices as revenues climb again in Q3; Is the U.S. shale patch refusing to pump for political reasons?; Prepare for volatility in natural gas markets; AEA calls for FTC investigation of anti-consumer behavior by President Biden and his administration; INTERNATIONAL: Climategate: Never Forget (11th anniversary).