Pennsylvania’s unconventional natural gas producers continued to curtail volumes in the second quarter as the state reported only the second sequential production decline in more than three years. 

Unconventional natural gas production was 1.717 Tcf in 2Q2020, down from 1.766 Tcf in 1Q2020, when the state also reported a quarter/quarter production decline, according to data released by the Pennsylvania Independent Fiscal Office (IFO). Second quarter volumes grew by only 2.8% year/year, the lowest growth rate in more than three years. 

Producers have made price-related curtailments since the beginning of the year as they’ve grappled with low natural gas demand in the United States and across the world. 


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The IFO said from 1Q2019 to 2Q2020, the average price of natural gas in Pennsylvania declined by 49.7%. Average prices in the state were $1.36/MMbtu in the second quarter, down 36.6% from the year-ago period. 

There were 113 new horizontal wells spud in 2Q2020, a decline of 51 wells from the same time last year and the fifth consecutive quarter in which there was a year/year decline in new wells spud. 

There were also 9,584 horizontal producing wells in the second quarter, which account for over 99% of unconventional production. That’s up 7.7% from 2Q2019. It was the smallest year-over-year increase in quarterly horizontal producing wells on record, the IFO said.