The availability of new technology has helped spark the
resurgence of oil and gas drilling across the region – especially
for gas and in locations that haven’t traditionally been known for
rich reserves.

According to figures from the state Department of Environmental
Protection, through the end of November, the number of permits
being issued by the agency for oil and gas drilling or a
combination of each is above the rate from last year across the
region.

That holds especially true for Elk, Cameron and Potter counties,
which have seen significant hikes in drilling permits. Ironically,
McKean County, which has experienced the most drilling activity, is
on par to equal or be slightly ahead of last year’s figures for
oil, gas or combination drilling.

“The activity is still very high in McKean County,” Pennsylvania
Oil and Gas Association Executive Director Steve Rhoads said
Tuesday. “The industry is still very lively and strong and I expect
it will stay that way for quite some time.”

Officials said new technology is allowing producers to drill for
previously untapped oil and gas in areas which have been harvested
before. The elevated price for crude oil and gas has also played a
part in the activity.

“In McKean and Warren counties and elsewhere up north, most of
the wells being drilled are combo wells,” Rhoads said. “It’s all a
response to the elevated price we’re in.”

Rhoads said there is a “great deal” of leasing currently ongoing
across the northern tier of the state and as far as Centre and
Bradford counties.

“There is a great deal of increased interest from companies in
deep gas rights,” Rhoads said. “A large amount of competition is
going on for leasing right now. There is a larger interest in the
deeper prospects out there. Obviously, there has been a significant
increase in the historical gas and oil drilling areas of the
state.”

For his part, Bob Gleeson, the chief of permitting for DEP’s oil
and gas program in the Northwest Region, said the increase in the
number of combination wells has to do with “more sophisticated
completion techniques.”

“In the older times, they (producers) were simply looking for
some of the bigger sands and oil,” Gleeson said. “Now, with natural
gas being a good commodity, they are going back into those areas.
They are looking at other smaller strings of sand that are there
and were passed up before. Producers are more sophisticated about
finding them (reserves).”

Looking at the figures for this year through the end of
November, a total of 839 permits have been issued by the agency for
McKean County; 102 for Elk County; 117 for Potter County; 16 for
Cameron County; 559 for Warren County; and 353 for Forest County.
By comparison, McKean County received 760 permits last year; Elk,
96; Potter, 110; Cameron, 13; Warren, 505; and Forest, 291.

As a result, McKean County is on pace to near that figure this
year; Elk and Forest are ahead of pace; Potter and Warren are
slated to double their amount; and Cameron County is far ahead.

Thus far, 71 permits have been allotted for McKean solely for
gas drilling; 22 for Elk; 44 for Potter; 13 for Cameron; 25 for
Warren; and 17 for Forest – Cameron had none last year, while Elk
has risen by 17 permits and Potter by four.

Meanwhile, combo permits have decreased in McKean County thus
far, with 98 allotted; Elk has risen by 34 permits; Potter hiked by
18; and Warren rose by 48. Forest County has dropped by 68 permits
and Cameron County has none.

Straight oil permits thus far are as follows: 552, McKean; 39,
Elk; 35, Potter; none, Cameron; 414, Warren; and 171, Forest.

“Out east, there has been some shallow and deep gas plays,”
Gleeson said. “There are some shallow wells in Cameron, Clinton and
Centre counties, some of which were originally explored in the
early 1980s. There is just more interest in them, but the more
remote areas are harder to get out to a sales point.”

According to Rhoads, about 10 to 15 percent of the oil was
removed from the ground during the previous boom, leaving behind 80
to 90 percent of the natural crude.

“New technology was needed to bring that up,” Rhoads said. “As
the price goes up, the technological advances are financed and you
start to see things happen. As prices go up worldwide and as the
oil that’s easy to find gets depleted, the producers will
continually revisit the traditional oil fields to squeeze more oil
and gas out of the ground.”

Officials believe the amount of drilling will continue to climb
as the price of gasoline and at the wellhead continues on an upward
trend.