Marcellus Shale News Pulse March 2023

Posted: April 20, 2023

The Marcellus Shale | March 2023

Field Overview

The Marcellus Shale is the largest gas play onshore in the US. Located in the Northeast, it supplies the high-demand markets along the East Coast. Most of the basin’s gas is produced through unconventional methods, while the little oil produced is mostly by conventional means. Some of the top formations include the Onondaga and the Huntersville.

State Drilling Statistics

Active Drilling Rigs in Basin- 41 (+6)
Total Rigs in Pennsylvania- 25 (+3)
Total Rigs in the United States- 748 (-1)
Total U.S. Rigs 7.8% YTD

State Permitting Data
Permits Approved – 88

Marcellus Top Producers
Top Producer By BOE – Chesapeake

Basin Highlights

Pennsylvania wants to regulate carbon dioxide storage wells

Pennsylvania is making moves towards controlling carbon dioxide injection wells—and maybe all injection wells inside its borders. As a result, the state would be in charge of approving and monitoring a sector that has not yet been created but is one of the most talked-about aspects of the energy transition. Companies have indicated an interest in creating carbon injection wells, including Shell and Archaea Energy Inc. The state is also thinking about requesting prioritization over other kinds of federally regulated injection wells, such as geothermal wells, enhanced recovery wells, and wells used to dispose of oil and gas effluent. Control over these wells will give the state more freedom to put them where they deem best as well as use them in ways that serve the state best. 

Shapiro backs ‘hydrogen hubs’ in Pa., boosts plugging abandoned oil and gas wells

In his state budget speech on Tuesday, Governor Josh Shapiro emphasized a few energy and environmental measures, such as the establishment of a “regional hydrogen hub” and the capping of existing oil and gas wells. To promote the use of renewable energy and stop climate change, the H2Hubs effort intends to establish a network of infrastructure, customers, and hydrogen producers. More than $400 million would potentially be given to Pennsylvania over a ten-year period to plug wells. Shapiro initially brought attention to Pennsylvania’s 26,000 abandoned oil and gas wells after arguing a connection between them and weather negatively affecting agriculture in the area.

Pennsylvania Posts Largest Annual Decline in Natural Gas Production

The most significant year-over-year fall in Pennsylvania’s natural gas output since production data gathering began, was recorded in the fourth quarter of 2022, when it fell by 5.1%. Despite horizontal producing wells, which account for 99% of the production, picking up throughout 2022, output decreased. By why? Well, NGI market analyst Josiah Clinedinst noted “The four largest publicly traded U.S. producers saw a discernible decrease in fourth quarter production,”. He also stated that “All four cited takeaway capacity constraints as the main reason for reducing production overall in Appalachia.” The recent drop in gas price has also deterred producers from ramping up output. 

Operators with the Most Permits in PA

3Range Resources11
4Snyder Bros8
Hyperlinks to available Q3 2021 Reports

Top Producers By Gas

ChangeRankCompanyGas Production (MMCF) (2/23)
2Coterra Energy67.3
4Rice Drilling40.7
Hyperlinks to available Q3 2021 Reports

Rig Count

PA Oil Production

PA Natural Gas Production

RARE PETRO Podcast Logo
Rare Petro Podcast

Click above to subscribe to the RARE
PETRO Podcast Network or visit

The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
RARE Petro Analytics

Related Tags: Marcellus | News Pulse

Send Us a Message

Rare Petro Logo

1224 Washington Ave,
Suite 10
Golden, CO 80401

(720) 772-7371

Rare Petro Logo


Oil & Gas News Pulse


You have Successfully Subscribed!