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LOGAN, Utah (AP) -- Interest in northern Utah's abundant mineral deposits and coal bed methane pockets could increase over the next two decades as the price of energy commodities continues to rise, a top state energy official said.
"People are going to go to the areas of the state that have had production first and spend their money there, but as the needs continue for oil and gas resources nationwide, these areas will be looked at later on," John Baza, director of the stat's Division of Oil, Gas and Mining, said to the Bear River Association of Governments' Governing Board.
Those areas include Box Elder, Rich and Cache counties. The division has issued more gas permits in the past three years than ever before, Baza said. In 2003, 1,100 drilling permits were issued while 1,629 were approved in 2004. This year, roughly 1,300 have been issued.
In 1988, less than 200 permits were issued.
Baza said the trend will continue so long as demand remains high.
"Commodity prices are still high. That means that oil and gas activity in Utah is still very high. We are breaking records right now," he said. "This year was a banner year for the state."
But tapping into the mineral deposits and coal bed methane pockets is still too expensive and oil and gas prices have sharply fluctuated, adding unpredictability to where and how aggressively drilling will be in the state, he said.
"If you look at the price rise over the last several years, it's been a roller coaster ride," Baza said. "What gets curtailed severely when prices get low is new drilling activity. Companies aren't willing to spend money to poke holes in the ground."
