SYRACUSE - Driven by prolific wells in the Finger Lakes, natural gas production in New York reached a new record in 2006 but is expected to begin leveling off in coming years unless new discoveries are made, state officials said Monday.
New York wells pumped out 55.157 billion cubic feet of natural gas, just more than last year's previous record of 55.156 billion cubic feet, the state Department of Environmental Conservation reported. The amount was enough to supply the natural gas needs of nearly 800,000 homes for a year.
Natural gas production in New York has tripled over the past decade, expanding from 18.3 billion cubic feet a year in 1996 with the discovery of the Trenton Black River reservoir, a 460-million-year-old resource-rich seabed formation that stretches from West Virginia to Canada and cuts through upstate's Finger Lakes region.
More than three-quarters of the state's natural gas - 41.8 billion cubic feet - flowed from 84 wells in the Trenton Black River zone, according to figures reported by operators.
One well alone in the formation, the Stoscheck 1 in Chemung County, produced 3.94 billion cubic feet of natural gas - enough by itself to heat more than 57,000 homes for a year.
But that amount was down from 44 billion cubic feet in 2005, the DEC reported.
“When you look at the trend from 2003 to 2006, we are kind of plateauing,” said Brad Field, director of the DEC's Division of Mineral Resources. “Absent any other new discoveries like the Trenton Black River, we are going to see a decline, or at least a leveling off here over the next year or two.”
Companies are continuing to explore the Trenton Black River zone, as well as other formations to its north and east, and there is a strong likelihood of new discoveries, though their size is unpredictable, Field said.
“If the companies do find some new areas with deep production like this, then all bets are off and we could be back on another surge,” Field said.
Since 1996, independent oil and gas companies have invested an estimated $825 million in Trenton Black River development, with an average well costing more than $2.5 million.
Most of this exploration has been south and west of the Finger Lakes, although exploratory wells have been drilled as far east as Montgomery County, the DEC said.
Even with its record-setting numbers, New York produces just a small fraction of what states like Colorado and Wyoming put out.
Still, oil and gas production was a $413 million business in New York last year, down from $440 million in 2005.
Landowners received an estimated $49.2 million in production royalties while local government prospered by about $124 million in local taxes to the largely rural areas being tapped, according to state environmental officials.
The DEC issued 622 well drilling permits in 2006, the most in more than 20 years. By comparison, the state issued 436 drilling permits in 2005. Permits issued in 2006 included 353 for natural gas wells and 190 for oil wells.
Drilling in 2007 continues at an active rate. In the first six months of 2007, DEC received 319 permit applications, including 224 for gas wells, 72 for oil wells and 5 for geothermal wells.
The DEC also reported that oil production in New York increased 51 percent from the previous year for a total of 319,099 barrels.
Natural gas production in New York has tripled over the past decade, expanding from 18.3 billion cubic feet a year in 1996 with the discovery of the Trenton Black River reservoir, a 460-million-year-old resource-rich seabed formation that stretches from West Virginia to Canada and cuts through upstate's Finger Lakes region.
More than three-quarters of the state's natural gas - 41.8 billion cubic feet - flowed from 84 wells in the Trenton Black River zone, according to figures reported by operators.
One well alone in the formation, the Stoscheck 1 in Chemung County, produced 3.94 billion cubic feet of natural gas - enough by itself to heat more than 57,000 homes for a year.
But that amount was down from 44 billion cubic feet in 2005, the DEC reported.
“When you look at the trend from 2003 to 2006, we are kind of plateauing,” said Brad Field, director of the DEC's Division of Mineral Resources. “Absent any other new discoveries like the Trenton Black River, we are going to see a decline, or at least a leveling off here over the next year or two.”
Companies are continuing to explore the Trenton Black River zone, as well as other formations to its north and east, and there is a strong likelihood of new discoveries, though their size is unpredictable, Field said.
“If the companies do find some new areas with deep production like this, then all bets are off and we could be back on another surge,” Field said.
Since 1996, independent oil and gas companies have invested an estimated $825 million in Trenton Black River development, with an average well costing more than $2.5 million.
Most of this exploration has been south and west of the Finger Lakes, although exploratory wells have been drilled as far east as Montgomery County, the DEC said.
Even with its record-setting numbers, New York produces just a small fraction of what states like Colorado and Wyoming put out.
Still, oil and gas production was a $413 million business in New York last year, down from $440 million in 2005.
Landowners received an estimated $49.2 million in production royalties while local government prospered by about $124 million in local taxes to the largely rural areas being tapped, according to state environmental officials.
The DEC issued 622 well drilling permits in 2006, the most in more than 20 years. By comparison, the state issued 436 drilling permits in 2005. Permits issued in 2006 included 353 for natural gas wells and 190 for oil wells.
Drilling in 2007 continues at an active rate. In the first six months of 2007, DEC received 319 permit applications, including 224 for gas wells, 72 for oil wells and 5 for geothermal wells.
The DEC also reported that oil production in New York increased 51 percent from the previous year for a total of 319,099 barrels.
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