The Energy Information Administration reported that from 2011 to 2012, natural gas production increased up to 72 percent in Pennsylvania, which ultimately made it the third-largest marketed gas-producing state in the U.S. However, drilling productivity reports and preliminary data showed that the Marcellus production is on pace to make Pennsylvania the second-largest producer in 2013.
The state is rapidly growing and it saw the largest percentage and volume increases in marketed gas in 2012. The Marcellus shale is also located in West Virginia, a state that became one of the top 10 producers over the last few years. The gas production growth in the Marcellus shale has increased so much that the spot prices in the Northeast could continue to fall below the Henry Hub Natural Gas Spot Price in the near future, according to the EIA.
Some states dropping in production
According to the EIA, Wyoming and federal offshore production, which includes both the Gulf of Mexico and the Pacific Ocean (California), dropped in recent reports. The federal offshore production has been on a steady decline since 2002, but the gas market is seeing good signs with the large production growth in the Marcellus shale regions.
Pennsylvania is seeing an increase from tight gas development and the continuous drilling in natural gas-rich Northeast areas are keeping it atop the top 10 states in production. According to the EIA, the second most natural gas producing state, Louisiana, saw a 2 percent drop in production in 2012, reported The Times-Picayune. Louisiana produced nearly 2.96 trillion cubic feet of gas in 2012 and Pennsylvania's production rose to 2.26 trillion cubic feet last year.
Texas still the leader
According to The Times-Picayune, Texas leads the nation in natural gas production and both Louisiana and Pennsylvania remain well below the leading state. Texas produced 8.14 trillion cubic feet in 2012 and is expected to continue to grow in production.
However, the Marcellus shale is still making Pennsylvania the fastest-growing state in natural gas production. The Marcellus shale is estimated to produce at a rate of nearly 13.7 billion cubic feet per day by January 2014, which is up from less than 10 billion in January 2013, The Times-Picayune reported.
In Louisiana, the natural gas comes from the Haynesville shale located in the Northwest area of the state. Drilling has slowed in the past years and companies continue to shift their resources and work sites to the Marcellus region. Natural gas producers can look to Broadwind Energy for precision gears and gearboxes that go into hydraulic fracturing equipment.