Wells not dry yet, experts contend

By DANIEL LEBLANC, The Times Herald
10/21/2005

CUBA — More oil wells are being drilled locally and outside companies are taking more interest in the Twin Tier’s supply of gas and oil, local oil producers said at Thursday’s New York State Oil Producers Association Inc. meeting.

The group met at Moonwinks Restaurant for its 87th annual meeting and discussed the state of some of the local oil and gas fields.

Association President Paul Plants told members that “it’s hard to find a time when the price of fuel has been so volatile.”

He added that there is also concern over the possible rise in natural gas costs this winter.


“Sixty percent of the Gulf Coast’s gas wells have been shut down” due to recent hurricanes, he said. “This is good for local producers, but difficult for the elderly who are on fixed incomes.”


With an ever-increasing demand for natural gas, Mr. Plants said New York stands poised to potentially pick up some of the slack in the industry.


“We have 100 years (supply) or better of natural gas in New York,” he said. “New York could make a difference in the natural gas supply.”


With this large supply, the problem is tapping the natural gas wells and piping it to other areas of the country, he said.


“We don’t have the infrastructure to bring it to the market,” he said.


After the meeting, he said that a new pipeline would likely have to be laid in some areas, which is difficult to get approval for due to environmental regulations.


Also, with the renewed interest in oil products due to rising crude oil prices, he said there has been increased interest in the Twin Tier’s oil reserves.


“Things are beginning to pick up,” he said.
Most of the interest has been in the Bradford, Pa., area, but New York’s Southern Tier has seen some increased activity as well, he said.


The Department of Environmental Conservation has received nearly double the number of well permits than from a year ago, Mr. Plants said. That number could double again in 2006.


“There are a lot of heavy hitters from outside the area” looking to drill wells of 10,000 feet, he said. Most of the smaller local operations only drill as deep as 2,000 feet.


Smaller producers are getting more out of these shallower wells because of new technologies and techniques, he said.


The 156-member Association has also seen its first increase in members in several years, he said.


John Miller, a geologist with Beldon & Blake Corp., which has many oil fields around Bradford, Pa., said that his company is continuing to expand its number of oil wells in the world’s first billion dollar oil field.


Between 1871 and 1936 an estimated 352.7 million barrels of oil were produced from the oil wells surrounding Bradford, he said.


“This is an extremely exciting area. There is a tremendous amount of opportunity there,” Mr. Miller said.


The Company’s main focus has been on wells in Westline, which is south of Bradford. The company has been drilling wells as close as 450 feet apart.


A lot of the oil being produced comes from old wells from the 1800’s and 1900’s that were not completely used up, he said.