Helping to protect landowners right for the extraction of Natural Gas.

Helping to protect landowners' rights for the extraction of Natural Gas.

Tuesday, July 27, 2010

Decrease in nat gas production in NYS since 2009--DEC Report

DEC Reports: Natural Gas Production Declines 11 Percent in 2009by New York State Department of Environmental Conservation
ALBANY, NY (07/27/2010)(readMedia)-- Natural gas production from New York wells in 2009 continued at a relatively high rate but has declined from recent record levels, State Environmental Conservation Commissioner Pete Grannis announced today.

For 2009, 44.85 billion cubic feet (bcf) of natural gas was produced in the state, representing the sixth-highest total ever. Still, that represents an 11 percent decline from the 2008 total of 50.32 bcf and 19 percent below the all-time high of 55.34 bcf, set in 2006. The 2009 production, which was enough to supply the natural gas needs of approximately 650,000 homes for a year, was driven by wells in the Trenton-Black River formation in the Finger Lakes region and by increases in production from traditional New York formations, such as the Herkimer sandstone in Madison and Chenango Counties.

Oil production decreased 18.5 percent in 2009, with a total of 323,536 barrels. Total market value of the oil and gas produced in New York in 2009 is estimated at $207.5 million, down approximately 57 percent from 2008 – a result of the significant decline in oil and gas prices from 2008. Landowners received an estimated $25.9 million in oil and gas royalties and local government taxes on the market value of production are estimated at $6.4 million.

Statewide, 13,219 wells were reported as active in 2009. In addition to oil and gas wells, this included 968 underground natural gas storage wells, 145 brine production wells and 91 geothermal wells. Since the late 1800s, more than 75,000 oil, gas and salt mining wells have been drilled in New York.

The 2009 report is available at: http://www.dec.ny.gov/energy/36159.html

The Trenton-Black River formation remains New York's dominant gas production zone, accounting for 60 percent of total production in 2009. Ninety-eight wells were productive in the formation, supplying 27.1 bcf. One well, the "Nowlan" well in the town of Erin, Chemung County, produced 2.49 bcf – enough to heat more than 36,000 homes for a year.

Trenton-Black River production was down from 2008, when it produced 34.8 bcf. That 22 percent decline was partially offset by a 2.5 percent t gain in other producing formations. Trenton-Black River drilled footage in 2009 fell to its lowest level since 1996.

DEC issued 552 drilling permits in 2009, down from 737 in 2008. Permits issued included 246 for natural gas wells, 279 for oil wells, 4 for brine production wells, 4 for stratigraphic wells, 18 for underground gas storage wells and 1 for a monitoring well.

While natural gas production from the Trenton-Black River formation has dominated the state's overall gas production for the past decade, there is significant interest in development of the Marcellus Shale (http://www.dec.ny.gov/energy/46288.html) and other unconventional gas reservoirs in New York such as the Utica Shale. While DEC in the past has permitted a small number of vertical wells for gas production in the Marcellus Shale, applications for higher production horizontal wells are on hold pending DEC's assessment of the potential environmental impacts from the high-volume hydraulic fracturing process used to extract the gas.

Additional information on New York's oil and gas resources is available at http://www.dec.ny.gov/energy/205.html . An on-line searchable database at http://www.dec.ny.gov/cfmx/extapps/GasOil/ provides information on individual well production, drilling operations, locations and depths, along with information on well owners and operators, registered drillers, well plugging companies and companies that provide financial security instruments. Individual well production from 1985 through 2009 is available at http://www.dec.ny.gov/energy/36159.html.

2009 Natural Gas Production by County (In Thousands of Cubic Feet):

Chemung 13,890,161
Steuben 12,320,765
Chautauqua 6,473,408
Erie 2,364,862
Cattaraugus 1,615,243
Chenango 1,599,381
Seneca 1,450,148
Cayuga 1,068,846
Madison 951,077
Schuyler 816,884
Tioga 733,071
Genesee 727,020
Wyoming 337,929
Allegany 235,834
Livingston 110,316
Ontario 75,059
Yates 45,474
Wayne 33,141
Niagara 150
Oneida 125
Oswego 1
TOTAL: 44,848,895

Natural Gas Production Trends (Statewide total)

2009: 44.85 bcf
2008: 50.32 bcf
2007: 54.91 bcf
2006: 55.34 bcf
2005: 55.20 bcf

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New York State Department of Environmental Conservation
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Lori Severino, 518-402-8000 Share this News
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