Though the number of wells drilled fell by nearly a third, natural gas production in Pennsylvania jumped a whopping 69% in 2012, according to the Energy Information Administration. Output in the state rose from 3.6 bcf/d to 6.1 bcf/d.
Going forward, Pennsylvania production should continue to increase, led by the giant Marcellus shale. The Marcellus is considered one of the lowest-cost, if not the lowest-cost, play in the country. Analysts at Societe Generale estimate that drilling in the Marcellus is profitable as long as natural gas prices remain above $1.90/mmbtu.
now, there are some monkeys around here who dont understand how capitalism works
they claim that because companies like CHK overspent and their cost structure requires $4+ NG to be profitable, that the NG price must necessarily go to $4 to cover the least efficient players
sorry, capitalism doesnt work that way... the price will move where the market is moving... and that is to the Marcellus with new horizontal drilling techniques and profits even at $2 gas
if the older players lose money because they committed too much money too early... well, they take the hit and the newer players win (why do you think CHK is selling off their assets now - they screwed up and went too big too early)
its not touchy, feely sweet... but its capitalism at its finest