Pa. remains center of natural gas drilling

State’s wells linked to regional, national hubs.

PITTSBURGH —

Pennsylvania may be set to dominate natural gas production in the Marcellus Shale region for many years, experts say.

With billions of dollars already invested in leases, wells and related infrastructure, the state is a cost-effective place to do business.

Fadel Gheit, an oil and gas analyst with Oppenheimer & Co., says he expects Pennsylvania to be the center of activity for several years at least.

“The industry will always stay with what they’ve got,” Gheit said.

An existing base of suppliers also helps, Gheit said, as well as a growing network of pipelines linking the Pennsylvania wells to regional and national hubs.

The Marcellus is a gasrich rock formation thousands of feet under large parts of Pennsylvania, Ohio, New York and West Virginia. During the past five years, advances in drilling technology made the gas accessible, leading to a boom in production, jobs, and profits — and a drop in natural gas prices for consumers.

The industry has been so excited about prospects in Pennsylvania that there’s a large backlog of partly finished wells that will keep companies busy for years.

Many drillers are shifting rigs from so-called dry natural gas and are instead seeking oil deposits or “wet gas,” which fetches a premium price.

The most promising wet gas areas are in western Pennsylvania, Ohio and West Virginia.