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Natural Gas Production In the Marcellus Basin Declined in 2019 After Years of Rapid Growth
(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)
Ten years ago, gas production in the Marcellus Basin of Appalachia represented less than 5% of domestic production. At the end of 2018, it represented 41% of production. This stratospheric rise came to a halt in 2019 with production ending the year representing only 39% of production. Appalachia’s contribution to domestic gas supply is declining in response to a 30% decline in rig count in the area over the last twelve months. Gas futures indicate that natural gas prices in the area are likely to remain depressed further discouraging any rebound in drilling. Is the boom of Appalachia coming to an end (Bear case)? Or, does the decline represent a temporary setback (Bull case)?
