Pennsylvania Sets Natural Gas Record, Posts Lowest Electricity Prices in Region

Pennsylvania energy producers recovered a record amount of natural gas last year, resulting in Keystone State consumers paying the lowest electricity prices in the northeastern United States.

According to the U.S. Energy Information Administration (EIA), Pennsylvania produced an average of 15 billion cubic feet of natural gas per day in 2017, which was 3% higher than record 2016 production. The state’s rig count also rose from 20 rigs in 2016 to 33 in 2017.

Image courtesy of the U.S. Energy Information Administration.

Image courtesy of the U.S. Energy Information Administration.

“Pennsylvania has experienced an increase in permitting and drilling activity with the expansion of regional pipeline capacity capable of moving natural gas to market centers outside of production areas,” EIA reported.

Importantly, an expansion in regional pipelines has allowed producers to deliver their product to market.

“In the past, natural gas production in Pennsylvania outpaced the ability of regional infrastructure to process and transport it out of the region,” EIA noted. “Several pipeline projects in recent years have alleviated these constraints.”

“EIA forecasts natural gas production to continue to increase in the Appalachian basin, which would indicate a need for additional pipeline capacity,” EIA added.

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