2011 Executive Summary & Trends - Oil, Gas and Solution Mining
Production, Market Value and Economic Impact
New York State natural gas production in 2011 was 31.10 billion cubic feet (bcf), down 13% from the previous year. Trenton-Black River production declined 17% to 15.10 bcf, but accounted for almost half (49%) of 2011 gas production. Gas production from the Herkimer increased 7% from the previous year to 2.29 bcf in 2011, while gas production from the Medina decreased 2% to 9.88 bcf. Oil production decreased 3.3% from the previous year to 374,363 barrels (bbls) in 2011.
The oil and gas produced in New York State in 2011 is valued at an estimated $157.86 million dollars. Approximately $4.74 million dollars was generated for local government taxes. Approximately $19.73 million dollars was generated in royalties for landowners. Oil and gas development has historically occurred in the most western parts of the State, but the Finger Lakes region has experienced activity for the last decade.
In 2011, New York well owners reported 15,128 wells (all regulated well types). Most of these wells were drilled to explore for and/or produce oil or natural gas. Other well types reported in the 2011 total include underground gas storage, solution salt mining, geothermal, brine disposal and stratigraphic.
The total number of wells completed decreased 25% to 267 in 2011. For the third consecutive year, no new Trenton-Black River fields commenced production. Though there was a slight decrease in gas production from the Herkimer wells in 2011, it produced over 2 bcf for the third straight year. In 2011 there were a total of 51 wells statewide with Herkimer production.
In 2011 a total of 242 operators reported 3,061 wells with zero production. This is in addition to over 4,100 orphaned and inactive wells in the Department's records.
In 2011, New York held $24.66 million to guarantee well plugging and site reclamation.
Drilling permits issued decreased 46% to 252 in 2011. Total drilled depth of the wells for the year was approximately 351,494 feet (or 66.6 miles).
The Division of Mineral Resources (DMN) conducted 16 compulsory integration hearings in 2011, which resulted in 15 finalized orders. The remaining order was referred to the Office of Hearings and Mediation Services for adjudication.
In 2011, DMN's Oil and Gas staff performed 2,455 inspections and traveled 128,469 miles. Staff inspected well sites:
- during permit application review
- during drilling and plugging work, with emphasis on cementing operations
- to ensure regulatory requirements are followed and that violations, if any, are remediated
- during production and prior to ownership transfers to ensure compliance
- to ensure that reclamation meets requirements and
- to investigate complaints.
In 2011, the Department released a revised version of the draft Supplemental Generic Environmental Impact Statement for Well Permit Issuance for Horizontal Drilling and High-Volume Hydraulic Fracturing to Develop the Marcellus Shale and Other Low-Permeability Gas Reservoirs (SGEIS).
Proposed high-volume hydraulic fracturing regulations, and a proposed SPDES General Permit, were also issued for public review, with the associated comment periods running concurrent to that for the revised draft SGEIS.
- Permits and Completions
- State Land Leasing
- Underground Natural Gas Storage
- Solution Mining
- Well Plugging
- 10 Year Summary Statistics