As the price of oil and gas has fallen, drilling activity in the Marcellus and Utica shales has also fallen.  Interestingly, production of gas in our area has continued to increase.  The increase has been due to a large number of drilled wells being completed and put into production, and also due to improved drilling techniques which have increased production per linear foot from each new well.

Now for the first time we are beginning to see forecasts of a decrease in production.  That decrease won’t really hit until next year, so we can expect low gas prices through the rest of this year.

While gas prices being down really hurts those of us who work in the industry, this is pretty much par for the course.  There is a boom/bust cycle that lasts about eight years.  The last bust was in 2008, so this one is a bit early, but the next one might not come around for 10 years so it all evens out.  It would be nice if oil and gas producers would limit themselves a bit during the good times so that the good times could last a little longer, but everybody is competing with everybody else for their little bit so they open up the spigots as far as they’ll go while they can get good money.

Here’s to the good times, may they come back sooner than later.