PA Shale Production & Drilling Tumble in Latest IFO Qtly Report
Yesterday the Pennsylvania Independent Fiscal Office (IFO) released its latest quarterly Natural Gas Production Report for October through December 2022 (full copy below). There were 136 new horizontal wells spud (drilled) in 4Q22, a decrease of 18 wells (-12%) compared to 4Q21. Natural gas production volume was 1,856 billion cubic feet (Bcf) in 4Q22, down a big 100 Bcf (-5.1%) from 4Q21. It is the fourth quarterly decrease in production in a row (comparing the same quarters year-over-year). Sadly, 4Q22 production was also down from 3Q22–by 1.2%.
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Spanish-owed Repsol owns 214,000 net acres of leases in the Marcellus Shale, primarily located in northeastern Pennsylvania in Bradford, Susquehanna, and Tioga counties. Early last year (in January 2022), Repsol closed on a deal to buy Rockdale Marcellus out of bankruptcy for $222 million, adding Rockdale’s acreage and wells to Resol’s portfolio (see 
In 2020, EOG Resources, one of the largest oil and gas drillers in the U.S. (with international operations in Trinidad and China), sold *all* of its Marcellus assets, which were located in Bradford County, PA, to Tilden Resources for $130 million (see 
West Virginia Senate Bill (SB) 188, the Grid Stabilization and Security Act, is aimed at making WV more competitive with its neighbors–Pennsylvania and Ohio–with respect to siting more gas-fired power plants in the state. While there was a lot of early momentum to pass the bill, it came to a screeching halt early last week in the House of Delegates (see 
New shale permits issued for Feb. 20-26 in the Marcellus/Utica slide lower last week. There were 29 new permits issued in total last week (down from 35 the week before), including 24 new permits for Pennsylvania, no new permits for Ohio, and five new permits issued in West Virginia. Last week the top receiver of new permits by far was the largest natural gas driller in the country, EQT Corporation, with 20 new permits split between Greene and Washington counties in southwestern PA.
MARCELLUS/UTICA REGION: Severance tax proposed on natural gas drilling in Pennsylvania; NATIONAL: US gas storage withdrawal slightly outpaces consensus, NYMEX stumbles; New analysis debunks reports blaming gas stoves for respiratory illness; Drilling and completion set the stage for hydrocarbon production; INTERNATIONAL: Fifth of oil, gas workers feel like outsiders at work; How U.S. shale changed the face of global politics.