Producing gas wells edge lower, but growth should resume

Estimated U.S. gas wells producing gas at the end of 2016*

The number of producing gas wells in the U.S. slipped 1.5% last year, from 502,251 to 494,806, as the country’s output retreated from a peak of 91.7 Bcfd in April 2015 to 89.3 Bcfd in 2016.

Texas. While the historically low drilling rate caused a reduction in active gas wells, the rate of decline was half that of producing oil wells. According to the Texas Railroad Commission, the state lost 1,001, for a 1% drop. Losses were reported in eight of the 12 districts, with Districts 8A and 7B experiencing the largest decreases on a percentage basis, at –30.8% and –10.8%, respectively. In pure numbers, the greatest losses were in Districts 10, 7B, 6 and 7C. Districts 9 and 1 reported gains of 501 and 365 wells, respectively.

Louisiana’s active gas well count remained nearly flat last year, falling 0.7% to 18,563. All of the loss occurred in the northern portion of the state, where there was a 1.4% reduction to 17,356 wells. Meanwhile, active gas wells in the South increased 7.5%, to 1,114.

MID-CONTINENT. The country’s fourth-highest number of producing gas wells is in Oklahoma, which experienced a 2.0% loss last year, with 39,758 active wells. North Dakota has very little gas activity and closed out 2016 with just 170 wells online, a drop of 21.7%. Kansas remained nearly steady, with a total of 24,514 wells, concentrated in the southwestern/south-central portions.

WEST/ROCKIES. Gas production is minor, compared to oil output in California, thus there were only 1,100 active wells, a loss of 5 from the 2015 level. By contrast, Colorado has the fifth-highest number of active gas wells in the U.S. The state experienced a 0.7% decline to 34,376 wells. Wyoming saw its active well count bottom out last year at 19,019, a 5.9% reduction. Utah reported 156 fewer wells, for a count of 7,142.

EAST. In Pennsylvania, the number of active wells rose 2%, to 72,597. In Ohio, there also was an increase in active wells, with the count rising 2.3% to 33,256. Kentucky dropped 761 wells, down to 18,246. West Virginia’s tally is the third-highest in the country at 54,000. Yet, it dropped 5.6% from 2015’s level.

FEDERAL WATERS. According to BSEE, the Pacific region saw nearly all of its meager gas well count shut in, with just one active well. In the GOM, the focus on oil activity took its toll, as active gas wells fell 13.6%, to 840.