American Oil and Gas Reporter - June 2015 - 37

drilling activity rebounds, as well as giving
Harrisburg control over how the funds
are allocated, according to PIOGA.
"The impact fees have been an invaluable source of revenue to local communities," a published report quotes David
Sanko, executive director of the Pennsylvania State Association of Township
Supervisors. "We are anxious to preserve
that funding stream because it makes
sense for communities."
PIOGA adds that the Pennsylvania
Chamber of Business and Industry is
spearheading a coalition of diverse interests
opposing any new taxes that would sap
the economic engine that the natural gas
industry has become.
"Pennsylvania cannot afford to lose

our competitive advantage in the shale
play," Pa. Chamber President Gene Barr
says in a news release. "The natural gas
industry has revitalized Pennsylvania's
economy, bringing hundreds of thousands
of family-sustaining jobs, adding billions
of dollars into the economy, and lowering
energy prices. A higher severance tax
will drive our fastest growing industry
out of the state."
PIOGA has been working closely with
the chamber-led coalition to educate the
public and lawmakers about the ramifications of Wolf's tax plan, D'Amico
says. "We are gratified that groups rep-

resenting such diverse interests as home
builders, manufacturers, small businesses,
and the chemical industry have recognized
the importance of Pennsylvania's abundant
natural gas supplies and the benefits our
industry brings to the commonwealth,"
D'Amico relates. "With their help, we
will convince the general assembly that
the governor's approach is the wrong
way to go."
A joint hearing of the Senate Finance,
and Environmental Resources and Energy
committees was scheduled for June 1.
D'Amico was scheduled to be among
those testifying.
❒

Production Capacity
Drops, DrillingInfo Says

AUSTIN, TX.-From January to February, newly spudded oil and gas production capacity in the United States fell
9 percent, DrillingInfo says. It adds that
despite the drop, new production continues
to be more resilient than the decline in
the U.S. rig count by itself would imply.
DrillingInfo says it uses drilling locations along with permit and production
data to track well activity, identify new
wells and estimate their peak production,
allowing for predicted changes in new
production capacity at the national, county
and operator level. The combined peak
production rate of the newly drilled wells
is the sum of new individual well production rates, normalized to a monthly
rate.
February activity in the Bakken Formation saw a 12 percent drop in oil production compared with January, the fourth
consecutive monthly drop. However, the
company says, the drop in average rig
count between the two months was 18
percent. DrillingInfo says that shows how
the raw rig count is only part of the story.
New production in the Eagle Ford
play was flat from January, the company
says, despite declining rig counts.
DrillingInfo says the Permian Basin
was down only slightly from January. It
adds the drop in rig count continues to
have a disproportionate impact on the
number of new vertical wells, which have
a much lower initial productivity than
horizontal wells.
The oil production rate for Eaglebine,
Granite Wash and other areas outside
the defined play boundaries crashed another 37 percent in February, continuing
the trend from January, the company
says.
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JUNE 2015 37

American Oil and Gas Reporter - June 2015

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