Once again it’s a gas to drill for black gold, especially in
McKean County.

Citing figures released Tuesday by the state Department of
Environmental Protection, the state saw a record increase in the
number of oil and gas drilling permits issued by the agency – a
hike of 32.4 percent between 2004-05.

“America’s energy past is grounded right here in Pennsylvania,”
DEP Secretary Kathleen McGinty said. “And so is the country’s
energy future.”

The number of wells drilled in McKean County – the highest in
the state – rose by 235 wells, from 699 in 2004 to 934 last year,
according DEP officials. Statewide, the agency indicates the number
of permits issued last year stood at 6,046; in 2004 there were
4,567 permits handed out.

Locally, DEP’s Northwest Region – which includes McKean, Elk,
Forest and Warren counties – issued 3,044 permits last year, up
from 2,319 in 2004. The office also set an all-time high of 333
drilling applications in November of 2005 – the largest number of
applications ever received by the department in any one month since
the Oil and Gas Act of 1984.

Oil and gas officials said the increase in drilling is due in
large part to the desire to capture natural gas, the price of which
continues to skyrocket for the average resident. The influx can
also be attributed to high crude oil prices.

“The energy industry has responded to market demands by
re-visiting Pennsylvania’s oil and gas fields, creating homegrown
energy solutions that reduce our need to import fuel,” McGinty
said.

Echoing McGinty’s thoughts is U.S. Rep. John Peterson, R-Pa.,
who has introduced legislation that could eventually unlock the
supply of natural gas located in the Outer Continental Shelf.

“Obviously, the more energy we are able to produce domestically,
the better,” Peterson said. “Every unit of energy we can gain
access to within our own boundaries means one less unit for which
we have to haggle with foreign, and often unstable, interests.

“True energy security starts at home, and I’m glad to see
producers in our area investing the time and capital needed to
increase that availability.”

McKean County is at the forefront of that push, according to Bob
Gleeson, the chief of permitting for DEP’s oil and gas program in
the Northwest Region.

“A lot of older drilling overlooked some of the deposits that
were still there,” Gleeson said. “There are some pretty darn good
wells where the land was drilled previously. It’s an attractive
area which is giving up a lot of natural gas, which is a bonus for
them.”

In addition, Gleeson said modern logging techniques have also
helped to stimulate the prime locations for drilling, adding
Westline and the “Music Mountain” area of Lafayette Township is
“very attractive.”

Officials said the uptick in drilling has actually been
occurring over the past handful of years.

“The trend has been up over the last couple of years and keeps
growing and growing,” Freda Tarbell of DEP said, adding the vast
majority of permits are for new wells. Permits are issued by DEP
for new wells or for drilling deeper or redrilling an existing
well.

“The cost to drill a well has gone up some,” Gleeson said,
noting the turnaround time to process an application is usually 30
days.

As far as environmental concerns go, Gleeson said the
construction of roads leading to the drill sites are currently of
most concern to the agency, noting DEP has a pollution control plan
in place. “Everybody seems to be doing a better job of planning
than they did in the past.”

Pennsylvania Oil and Gas Association Executive Director Steve
Rhoads said the number of wells being drilled reflects the strength
of oil and gas at the wellhead.

“As long as they have strong price support, you are going to see
producers invest more and more in developing Pennsylvania’s natural
gas and oil reserves,” Rhoads said. “Natural gas is really the big
player right now and McKean County is a very hot area.”

Rhoads said other traditional “gas counties” include Armstrong
and Indiana.

“It really doesn’t get much better than this,” Rhoads said,
adding the industry went through a severe depression between the
late 1980s and early 1990s before seeing a rebound. Rhoads said he
doesn’t expect prices for crude oil to fall much below $40 a
barrel, with natural gas coming in at between $7 and $8 a cubic
foot at the wellhead.

“With those kinds of price floors, oil and gas producers have
every incentive to keep developing the resources,” Rhoads said.
“That also helps stimulate the economy.”

That’s good news for a region that is struggling
economically.

“That’s good news for our area,” state Sen. Joe Scarnati,
R-Brockway, said, noting that coal mining has also picked up.
“There are quality jobs there. If we are going to spend money on
salaries, I would rather do that for people in my district than in
the Middle East.”

State Rep. Martin Causer, R-Turtlepoint, agreed. “The amount of
activity is great to see and hopefully that will continue.”