Area eyed by energy companies

Higher prices and new technology have driven oil and natural gas companies to take a new look at the untapped reserves in Potter and Cameron counties.

The Pa. Dept. of Environmental Protection has issued a modern-day record number of permits for drilling in the two counties.

“The industry is still very lively and strong,” said Steve Rhoads, executive director of the Pa. Oil and Gas Assn. “I expect it will stay that way for quite some time.”

New technology is allowing producers to drill for oil and gas in areas previously considered uneconomical.

With higher prices in effect, energy companies have more incentive to go after those reserves.

“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.” Entering December, 117

permits have been issued for Potter County and 16 for Cameron. In 2005, the figures were 110 and 13, respectively.

For gas drilling only, 44 permits have been issued for Potter and 13 for Cameron. Those figures were 40 for Potter and zero for Cameron in 2005.

Rhoads said drillers are interested in some shallow natural gas reserves in Cameron County that were originally explored a quartercentury ago. He added that these pockets of gas are in remote areas which have not been economical to tap in prior years, since there’s a high cost to bringing that gas to marker.

About 13 percent of the available oil has been removed from the ground in Pennsylvania, according to Rhoads.

“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,” he added.