E&P Second Quarter 2023

Appalachian Basin production remained relatively stable over the review period despite a notable decline in drilling activity, supported in part by the completion of previously drilled wells. The basin’s modest production growth contrasted with the much stronger gains in the Haynesville, where drilling activity expanded significantly amid expectations for growing Gulf Coast LNG export demand. While both basins are heavily weighted toward natural gas, differences in infrastructure access and development economics contributed to their differing levels of activity.

Regional Focus: AppalachiaAppalachian Basin production remained relatively stable over the review period despite a notable decline in drilling activity, supported in part by the completion of previously drilled wells. The basin’s modest production growth contrasted with the much stronger gains in the Haynesville, where drilling activity expanded significantly amid expectations for growing Gulf Coast LNG export demand. While both basins are heavily weighted toward natural gas, differences in infrastructure access and development economics contributed to their differing levels of activity.

Disposal constraints are driving investment in oilfield water infrastructure, while beneficial reuse is creating potential new outlets for produced water. Discussions at the 2026 Oilfield Water Industry Update highlighted how capacity, contract durability, and ongoing capital needs influence operating decisions and valuations.