The oil fields of northcentral Pennsylvania continue to produce
in record numbers.

That’s the word from the state Department of Environmental
Protection, which released figures on Thursday indicating the
agency saw a 29 percent hike in permits issued – 4,919 through Aug.
31 – to drill for oil and gas. That figure is up by 1,101 permits
from the same period last year.

Locally, the Meadville office of DEP – which includes McKean,
Potter, Elk, Forest and Warren counties – approved 2,488 permits as
of Aug. 31, an increase of 576 from last year.

“We are seeing new drilling techniques and enhanced exploration
for natural gas in non-traditional areas of the state by new
companies or by companies that have not had a presence in
Pennsylvania in several years,” DEP Secretary Kathleen McGinty
said. “The energy industry is responding to market demands by
re-visiting Pennsylvania’s oil and gas fields.”

DEP officials said at the current rate, the agency will eclipse
its 2005 total.

So far this year, McKean County has seen 253 new wells drilled –
the highest level of any county across the region. Meanwhile, in
neighboring Warren County, there have been 163 wells drilled;
Forest County, 145; Elk County, 46; and Potter County, 13,
according to DEP figures.

By comparison, McKean County had a total of 694 new wells
drilled last year, according to DEP, while Warren had 211; Forest,
197; Elk, 72; and Potter, 25.

“We’ve been averaging a rise of about 30 percent each year for
the last four years,” DEP Community Relations Coordinator Freda
Tarbell said. “We are on track to do the same thing next year.”

Broken down further, McKean County saw 42 new wells drilled in
January; 40 in February; 38 in March; 35 in April; 27 in May; 22 in
June; 24 in July; and 25 in August.

Meanwhile, Warren County had nine drilled in January; six in
February; 19 in March; eight in April; 34 in May; 35 in June; 36 in
July; and 16 in August. Neighboring Forest County had 16 in
January; 32 in February; 24 in March; 16 in April; 15 in May; 13 in
June; 11 in July; and 18 in August.

Also, Potter County had two in January; one in February; two in
March; two in April; two in May; none in June; one in July; and
three in August. Lastly, Elk County had none in January; one in
February; none in March and April; 19 in May; 11 in June; eight in
July; and seven in August.

Ironically, news of the continued hike in oil and gas permits
comes on the heels of a drop in oil prices to around $60 a barrel.
Local oil purchaser American Refining Group was paying $60.75 a
barrel on Thursday, while Ergon Oil Purchasing was paying $59.25 a
barrel.

The average price for a gallon of unleaded, self-serve gasoline
across the region has also taken a tumble, to near $2.639 a
gallon.

On Wednesday, Steve Rhoads, executive director of the
Pennsylvania Oil and Gas Association, said the drop in prices
directly correlates to easing concerns over the domestic oil
supply, in part, because of a slow Atlantic hurricane season and a
loosening of tensions with Iran, one of the major players in the
Middle East in regards to oil supply.

DEP officials said in response to the increased drilling
activity, $333,000 has been included in the 2006-07 general fund
budget for six new oil and gas inspectors to process permit
applications and ensure compliance with the state’s environmental
laws. The department is currently in the process of filling those
positions.

The agency estimates that 300,000 wells have been drilled in the
state since Edwin Drake drilled the first commercial oil well in
1859 in Titusville.