Rising prices sparks increase in drilling permits

BUFFALO, N.Y. Rising energy prices have boosted at least one part of upstate New York’s economy — the drilling industry.

Last year, the state issued nearly 350 drilling permits in western New York — than in any other year since 1985. It’s expecting to top that number this year. The state has already received about 120 drilling applications for western counties in 2006. That compares to less than 40 during the first three months of 2005.

The president of one drilling firm — U-S Energy Development — tells The Buffalo News that his company is spending six or seven times the amount on drilling than it did last year.

The majority of the wells being drilled are for natural gas.

AP