OUTLOOK 2006: United States
Producing gas wells

US gas well count stabilizes

A modest 0.8% increase in gas wells reported in this year’s survey lifted the 2005 well count by 3,035 to 398,058 gas producing wells. The largest percentage gains came from three states: Utah, Colorado and Wyoming. Each enjoyed over 26% growth in producing gas wells.

Wyoming grew its total 26.2% over 2004, 4,791 wells, to 23,082 producers. Second in percentage growth was Colorado, whose 4,446-well increase lifted its total to 21,164 wells, a 26.6% increase. Both of these states continue their strong coalbed methane developments with very high drilling activity. Each state brings hundreds of new wells online each year. Utah enjoyed a 28.4% increase in producing wells, and came in third in percentage by adding 3,460 new gas wells.

Texas at 73,489 wells remains number one in total gas producers. However, across the state there were some significant changes. District 1 in the central-southwest of the state lost over 1,800 wells. These were almost directly replaced by an additional 1,789 wells in District 10 of the state’s panhandle. In the remaining 10 districts, nine had increases with most enjoying triple digit gains.

Pennsylvania returns this year in second place with its 43,847 total wells producing gas. This is down less than one percent from 2004. West Virginia held the number three slot again this year with 40,646 gas producers. This is a 0.6% increase representing an additional 246 wells.

Oklahoma rose two places in the 2005 listings. Its 36,526 producing wells lifted Oklahoma to number four from last year’s number six position. The 3,026-well increase is a full 9% over 2004. Ohio maintained its fifth place with 33,756 active gas wells. The state experienced a modest 1.6% drop in well count, losing 564 wells over last year. Kansas moved up one position, to number six, with a 3.9% increase over 2004. It now operates 25,294 gas wells, 942 more than last year.

Coalbed methane drilling’s importance and effect can be seen clearly in the movement of three states: New Mexico, Wyoming and Colorado. New Mexico shifted down three positions, to number seven from number four, after losing over 13,000 wells. In the other direction, Wyoming and Colorado each advanced one position in total well count to numbers eight and nine, respectively. Both states were lifted by strong coalbed methane drilling over the last year.

Louisiana rounds out this year’s top 10 gas producing states with 16,725 wells. The state maintained its number 10 ranking by increasing its producer count 719 wells, or 4.5%.

The most prolific gas producing area of the US, the Gulf of Mexico, lost almost five percent of its producing wells over the past year. Much of the loss is hurricane-related and should be restored over the coming year as reconstruction efforts are completed. 

Estimated US wells producing gas at the end of 2005