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2014 Executive Summary & Trends - Oil, Gas and Solution Mining

Production, Market Value and Economic Impact

New York State natural gas production in 2014 was 20.4 billion cubic feet (bcf), down 12.7% from the previous year. Trenton-Black River production declined 17.6% to 8.5 bcf, accounting for 42.9% of 2014 gas production. Gas production from the Herkimer decreased 14% from the previous year to 1.3 bcf in 2014, while gas production from the Medina decreased by 9.4% to 7.7 bcf. Oil production decreased 4.6% from the previous year to 358,390 barrels (bbls) in 2014.

The oil and gas produced in New York State in 2014 is valued at an estimated $101.5 million. Approximately $3.04 million was generated for local government taxes. Approximately $12.69 million was generated in royalties for landowners. Oil and gas development occurs in the most western parts of the state and the Finger Lakes region.

Wells

In 2014, New York well owners reported 14,863 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 2014 total include underground gas storage, solution salt mining, geothermal, brine disposal, monitoring, and stratigraphic. The total number of wells completed increased 16% to 206 in 2014.

In 2014, a total of 259 operators reported 2,290 wells with zero production. This is in addition to over 3,500 orphan and unplugged wells in the Department's records.

In 2014, New York held $25.85 million to guarantee well plugging and site reclamation.

Regulatory Activity

The Department of Environmental Conservation (DEC or Department) issued 176 drilling permits in 2014. Total drilled depth of the wells for the year was approximately 466,308 feet (or 88.3 miles).

No compulsory integration hearings were conducted in 2014, although one finalized order from a hearing held in a prior year was issued.

In 2014, Division of Mineral Resources' Oil and Gas staff performed 3,396 inspections and traveled 99,786 miles. Staff inspect 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.

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