For Release: Tuesday, July 6, 2004
DEC Announces Continued High Gas Production in New York in 2003
Development of Trenton-Black River Formation Leads Production
New York State Department of Environmental Conservation (DEC) Commissioner Erin M. Crotty today announced that natural gas production from wells in New York State continued in 2003 at historically high levels.
Total reported gas production was 36.0 billion cubic feet (bcf), down slightly from 36.6 bcf in 2002. The 2003 production, which is enough to supply 522,000 homes annually, reflects significant production from wells in the Trenton-Black River formation in the Finger Lakes region. Oil production in New York decreased slightly from the previous year for a total of 157,496 barrels reported by purchasers. Well owners also reported a total of 11,600 oil and gas wells. In response to DEC's e-commerce initiatives, owners reported 42 percent of wells and 91 percent of gas production electronically.
"Natural gas production from wells in New York State provides additional supplies of a cleaner burning fuel, helping to meet our energy needs while also benefitting the upstate economy,"Commissioner Crotty said. "Private investments in new production, especially in the Trenton-Black River formation, are expected to increase in coming years. DEC will continue to regulate energy production to ensure our environmental resources are protected and will work with private landowners and local communities to make them aware of their rights with respect to oil and gas leasing and development."
According to figures reported by operators, the Trenton-Black River formation continues to be the State's primary gas production zone, accounting for more than two-thirds of total production. In 2003, the Trenton-Black River formation produced 24.5 bcf from only 50 active wells, some of which produced only part of the year. One well in the formation, the Lovell 1323 in the town of Big Flats, Chemung County, produced 3.5 bcf, enough to supply more than 50,000 homes (at 69 million cubic feet/home), bringing its cumulative production to 11.9 bcf.
Since 1996, independent oil and gas companies have invested more than $200 million in Trenton-Black River drilling, at an average well cost of more than $1 million. Most of this exploration has been south and west of the Finger Lakes, with exploratory wells permitted as far east as Montgomery County and as far west as Cattaraugus County. Overall, the Trenton-Black River production extends west to Michigan and Ontario, Canada, and south to West Virginia.
Total market value of 2003 oil and gas production in New York is estimated at $232 million. Landowners received an estimated $29 million in production royalties. Local government taxes on the market value of production were estimated at $7 million. Also, in 2003, the average price of natural gas in New York was $6.31 per thousand cubic feet and the average wellhead price of oil was $29.47.
DEC has established strict environmental and safety requirements for natural gas and oil development in New York and also is responsible for preventing waste of these non-renewable natural resources. In addition, DEC protects the ownership rights of landowners affected by energy production.
Additional information on New York's oil and gas resources is available at the DEC's Division of Mineral Resources' website. Individual gas well production is also available at the site.
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