New York State Oil & Gas Well Drilling: Patterns Over Time

 

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Overview

New York State Department of Environmental Conservation (DEC) Oil and Gas Database includes records for nearly 45,000 wells in the state, nearly all of which are related to the oil and gas industry. Of these records, only 19,600 include drilling dates; some records simply reflect drilling permits that were applied for and expired, or were cancelled for other reasons. Of the records listed, 99% of those drilled are vertical, “conventional” wells.

Research by Bishop (2013) indicates that there could be more than 30,000 additional oil and gas wells that are not documented in the DEC’s database, and potentially not adequately plugged.

Over the past half-century, drilling activity in New York State has ebbed and flowed. In that period of time, drilling interest in oil and gas saw two main peaks: between 1975 and 1985, and — especially for gas — between 2004 and 2010. Gas drilling activity has currently tailed off to practically nothing since the ban on high-volume hydraulic fracturing was passed in late 2014.

In 2018 and 2019, there was a brief flurry of oil drilling, but that too has dropped off. The causes for the decline in new wells are complicated, but likely reflect a combination of reduced consumption of fossil fuels, as well as steady decreases in the price of oil and gas. Prices in the past several years are up to half what they were previously. In addition, the impact of COVID on the industry has also contributed to this decline, although other sources assert that the fossil fuel industry has benefited from the global pandemic.

In this article we’ll look specifically at spatial and temporal patterns in oil and gas drilling across New York State.


Mapping analysis

Every year, FracTracker updates the full state-wide dataset of oil, gas, and other assorted (non-drinking water) wells. To see the entire “big picture,” you can explore our interactive map below, which shows all wells in the New York State database, from prior to 1900 through late February 2021.

New York State Oil and Gas Wells

This map shows that, despite New York State banning high volume hydraulic, nearly 45,000 wells have been drilled, according to the Department of Environmental Conservation (DEC). Not all the wells in the DEC’s database were actually drilled; some were sites that were permitted, but never explored. Many have been plugged and abandoned. There may be nearly as many undocumented wells as there are in the database, given that record keeping in earlier years was nowhere near as comprehensive as it is today.

In order to turn layers on and off in the map, use the Layers dropdown menu. This tool is only available in Full Screen view. Data sources can be found in the Details section of the map as well as listed the end of this article.

View Full Screen | Updated February, 2021

 

FracTracker has also taken a more fine-grained approach to consider the patterns in drilling in New York State both spatially and temporally. Using the DEC wells database, we first filtered out well data for records that had actual spud (drilling) dates between 1970 and the present. Then, using pivot tables in Microsoft Excel, we graphed the data, and also looked for patterns around where the drilling was taking place.

Emergent from this process, we see the following.

Spatial distributions

Oil and gas hotspots are directly related to the underlying geology of a region. In New York State, the majority of oil wells have been drilled in the Chipmunk and Bradford Formations, followed by the Fulmer Valley, Glade, and Richburg Formations.

 Oil Wells in NYS and Their Associated Geological Formations

Updated February 2021

Figure 1. Oil Wells in NYS and Their Associated Geological Formations. Gas wells have historically been most productive in the Medina Formation, followed by the Queenston, and also Trenton-Black River Formations. Data source: New York State DEC Oil and Gas Database.

 

Gas Wells in NYS and Their Associated Geological Formations

Updated February 2021

Figure 2. Gas wells in NYS and their associated geological formations. Data source: NYS DEC Oil and Gas Database.

 

Temporal distributions

Activity in drilling has exhibited distinct patterns over time, as well.

Figure 3. New oil and gas wells in New York State by year (1970-2020).  Data source: New York State DEC Oil and Gas Database. 

Gas

In 1982 and 1983, gas drilling in New York State surged, with 774 and 667 new wells drilled over those two years, respectively. The hot spot was in the Medina Group, which over the years, continued to be a primary focus. Well depths in this section of bedrock average around 3,400 feet at that time, although wells were exploited at a more shallow depth in subsequent years. Starting in 1995, gas was discovered in the Black River shale formation, with reservoirs more than 10,000 feet deep in some places. All of these wells were vertically oriented, but still were exploited using hydraulic fracturing technologies.

Oil

The early to mid-1980s marked a relatively high level in oil well drilling in New York State, with a peak occurring in 1984, with 153 wells drilled. After a lull of about 20 years, activity picked up again in 2005, hitting a high point in 2006 when 188 oil wells were drilled. In 2010, there was another peak with 188 wells, followed by a waning period of 4 years. Then, in 2019, interest exploded in a small area of the Bradford oil fields in Cattaraugus County, with 156 wells drilled, and an average production of 319 barrels per well over the course of that year.

Economic implications

According to EIA estimate from 2014, the cost of drilling an onshore oil well is between $4.9 – 8.3 million, however smaller vertical wells like those common in New York State are likely to cost more in the range of $150,000. With the price of oil at $64 a barrel in 2019, in its first year in production, the gross profit of any of these wells in New York, based on reported production, would have been between $0 and $120,000, with an average year around $20,400 per well. It’s hard to imagine how drilling for oil in recent years in New York State could have possibly been profitable, in particular with the steep drop-off in production typically seen after the first year or two.

 

 

Figure 4.  Example of monthly production decline following drilling of an oil well. Data source: US Energy Information Administration

 

These simple examples of a localized “oil boom” in New York State provide a stark example of exactly how unsustainable these endeavors are, particularly for small drilling operators. So, despite the enthusiastic rush to oil drilling in 2019, activity after that has been followed by a quick decline, with only 41 oil wells drilled in New York State in 2020, and only 4, so far, in 2021.

Patterns in other types of wells

The increase in dry wells seems to track with the general patterns of oil and gas exploration. Hence, in periods when a lot of oil and gas wells are being drilled, there will be a higher number of wells that are dry, or nonproductive. During the 1970s, there was also a strong peak in disposal wells drilled. We are not certain whether this is, or is not, related to the high number of gas wells drilled during this period.

 

Figure 5. New oil and gas wells in New York State, by year (1970-2020). Data source: New York State DEC Oil and Gas Database

 

New York State moving towards better stewardship of legacy wells

Some of the oil and gas wells drilled in the 19th and early 20th century were particularly poorly documented (or not documented at all), and improperly plugged. This creates a public and environmental safety hazard, with more than 30,000 of these undocumented oil and gas wells spread across the state potentially leaking methane into the air and water. Finding the abandoned and orphan wells has been a long term problem because they are often located in rough terrain across central and western New York. Fortunately, the New York State Department of Environmental Conservation has taken new measures to locate and plug these legacy wells, using drone technology. FracTracker reported on a pilot initiative a few years ago that was testing this technique, but the new program is backed by $400,000 in funding from NYSERDA, the New York State Energy Research and Development Authority, in support of New York States ambitious goals to reduce greenhouse gas emissions through the Climate Leadership and Community Protection Act.

The Takeaway

One hundred years ago, few people expressed concerns about the environmental hazards associated with oil and gas drilling. Record-keeping was spotty, which has left us with a legacy of wells whose locations are lost to memory, or simply improperly plugged. After several periods of vigorous mineral extraction activity in the 1980s and early 2000s, oil and gas drilling has declined in its profitability, and formerly easily-accessed reserves have been depleted. Today, with unprecedented interest in clean energy sources like wind, geothermal, and solar, society can become less dependent on fossil fuels, and focus on responsibly stewarding the remnants of these “dinosaurs,” using new technologies to help clean up the damages left by them.


Topics in this Article

Infrastructure

Datasets used in this article and accompanying maps

NYS gas wells, 19 February 2021

NYS oil wells, 19 February 2021

NYS monitoring wells, 19 February 2021

NYS dry holes, 19 February 2021

NYS disposal wells_19 February 2021

NYS storage wells, 19 February 2021

NYS brine wells, 19 February 2021

NYS other wells_19 February 2021


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