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Increased natural gas prices triggered a jump in fracking activity in Pennsylvania in the second quarter of 2025, a new analysis by the Independent Fiscal Office shows.
The number of new wells fracked was up 67% compared to the same period in 2024, while the amount of natural gas produced by fracked wells in Pennsylvania increased 9% during the period.
Early indications suggest the trend isn't letting up.
Preliminary data shows that fracking activity in July and August was up 52% compared to the same period last year.
The spike in fracking activity comes as the state and nation move to build out infrastructure to support artificial intelligence development and to boost energy production to power the data centers needed for AI.
"While short term pricing changes are often seasonal or storage related, the case for natural gas couldn't be clearer, as 2025 is projected to set records for U.S. gas demand and, moving forward, more natural gas is used locally for power generation," said Patrick Henderson, vice president of government affairs and communications for the Marcellus Shale Coalition. "Pennsylvania continues to benefit from abundant, local production, which keeps consumer prices among the lowest in the country. In fact, the 2024 average price in Pennsylvania was the second lowest in eight years, and when adjusted for inflation, the lowest on record."
In July, state and federal officials and industry representatives convened in Pittsburgh for an AI innovation summit, at which $90 billion worth of projects were announced.
Some of the natural gas projects highlighted at that summit were:
-- Capital Power announced $3 billion over 10 years to upgrade and expand a gas facility in Shamokin Dam, including $2 billion worth of Pennsylvania gas purchases.
-- Enbridge will invest $1 billion to expand their gas pipelines into Pennsylvania with projects to be announced over the next six to 18 months.
-- Equinor announced an investment of $1.6 billion, generating 1,000 direct and indirect jobs per year, to boost natural gas production at the company's Pennsylvania facilities and explore opportunities to link gas to flexible power generation for data centers.
-- Frontier Group announced plans to invest $3.2 billion to transform the former Bruce Mansfield coal power plant in Allegheny County into a natural gas power station.
-- Homer City Redevelopment announced an agreement with EQT Corporation to purchase $15 billion worth of Pennsylvania natural gas to support over 4 gigawatts of power generation at the Homer City Redevelopment site.
-- TC Energy announced plans to invest $400 million to modernize its gas pipeline network in Pennsylvania.
Slowdown in 2024
The increased activity follows what had been a historically bad year for fracking in Pennsylvania in 2024.
There were more wells started in 2020 during the COVID-19 pandemic than were started last year. The last time there were fewer wells fracked in Pennsylvania than 2024 was 2007.
Fracking activity in the state peaked in 2010 when 1,600 wells were drilled.
The drop in fracking activity cost the state $15 million in reduced impact fee revenue.