Pennsylvania Natural Gas Production Up 5.1% in 2025, Prices Surge 70.9%

Independent Fiscal Office reports record production and price increases amid Winter Storm Fern

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

According to the Independent Fiscal Office, Pennsylvania's natural gas production increased 5.1% in 2025 compared to 2024, with 4th quarter production up 3.4% year-over-year. However, the average price of natural gas jumped 70.9% in 2025 compared to the prior year, driven by abnormally cold temperatures and Winter Storm Fern in January 2026 that temporarily pushed prices to nearly $10 per unit, outpacing the national benchmark.

Why it matters

Pennsylvania is a major natural gas producing state, and these production and price trends have significant economic implications for the state's energy industry, consumers, and overall economy. The sharp price spike also raises concerns about energy affordability and access, especially for low-income households.

The details

The Independent Fiscal Office reported that there were 446 new horizontal wells drilled in 2025, a 44.3% increase from the prior year and the first annual increase since 2022. Additionally, there were 129 new wells spud in the 4th quarter, up 55.4% from the same period in 2024. However, the dramatic price increases were driven by Winter Storm Fern in January 2026, which caused Pennsylvania spot prices to temporarily surge to nearly $10 per unit, outpacing the national Henry Hub benchmark.

  • In the 4th quarter of 2025, natural gas production in Pennsylvania increased 3.4% over the 4th quarter of 2024.
  • In 2025, Pennsylvania's natural gas production increased 5.1% over 2024 levels.
  • In 2025, the average price of natural gas in Pennsylvania increased 70.9% compared to 2024.
  • In January 2026, abnormally cold temperatures and Winter Storm Fern caused Pennsylvania spot prices to temporarily surge to nearly $10 per unit, outpacing the national Henry Hub benchmark.

The players

Independent Fiscal Office

An independent state agency that provides nonpartisan analysis of fiscal, economic, and budgetary issues in Pennsylvania.

Got photos? Submit your photos here. ›

What’s next

The Independent Fiscal Office's full report on 2025 natural gas production and prices in Pennsylvania is available online.

The takeaway

Pennsylvania's natural gas industry saw record production in 2025, but consumers also faced sharply higher prices, especially during the extreme winter weather in early 2026. These trends highlight the volatility and regional disparities in the natural gas market, and the need to balance energy production, affordability, and reliability.