Friday, July 20, 2012
According to Energy Digital, a global energy portal, the oversupply of natural gas has caused prices to drop. The drop in price is resulting in the slowing of production, which includes shutting down some Marcellus rigs, temporarily.
The article claims that the number of rigs operating in Pennsylvania is down 29 percent from its peak last year.
“The slowdown is no surprise seeing as many exploration companies have been planning on shifting drilling equipment to areas where the oil and natural gas is more profitable. The warm winter, further depressing demand and prices, had an influence as well.”
Over half of the wells drilled in Pennsylvania are not producing yet. Right now the state has more than 5,000 wells drilled.
Farm and Dairy, a weekly newspaper located in Salem, Ohio, has been reporting on topics that interest farmers and landowners since 1914.
Through the Shale Gas Reporter, we are dedicated to giving our readers unbiased and reliable information on shale gas development.