Pennsylvania’s natural gas production grew at its strongest rate since 2021 last year as prices firmed significantly and more unconventional wells were drilled, according to the state’s Independent Fiscal Office (IFO).
At A Glance:
Annual production up 5.1%
Output neared 7.8 Tcf
New wells grew by 44%
Natural gas production reached nearly 7.8 Tcf last year in Pennsylvania, an increase of 5.1% from 2024 and the strongest in four years, IFO said.
Over the course of 2025, 446 new horizontal wells were drilled in Pennsylvania, the nation’s second largest gas producing state behind Texas. There were 137 more wells drilled in 2025 than there were in 2024.
IFO said the average Pennsylvania spot price, based on NGI data, was $2.83/MMBtu in 2025, up about 71% from the prior year. That helped drive additional activity in the Marcellus and Utica shales.
IFO added that preliminary data show average prices increased dramatically in January when a historic winter storm blanketed much of the country and brought severe cold and inclement weather.
Average Pennsylvania spot prices, according to NGI data cited by IFO, surged to $10 in January, which outpaced spot Henry Hub prices.
IFO added that preliminary data for 1Q2026 suggest that the average Pennsylvania hub spot price for 1Q2026 will be about $4.90 because of strong winter demand, while Henry Hub spot prices are expected to average $4.75.
Winter Storm Fern set 79 all-time high average spot price records across the country, surpassing Winter Storm Uri's tally of 77 all-time highs, according to NGI data.
Numerous locations in the pipeline-constrained Northeast saw gas trade hands at average prices above $100/MMBtu during the storm as utilities scrambled to keep furnaces and power plants running.
