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Early explorers and settlers found natural oil and gas seeps to be common. The first oil boom occurred after the Civil War in south-central Kentucky. Leading Producing Zones: Cambrian?Pennsylvanian rocks produce oil or gas in more than 1,500 pools in Kentucky.
Kentucky has an estimated 18,000 producing oil wells and 13,000 producing gas wells. The majority of those producing wells are in the "stripper" category, having daily production rates of 60 million Btu or less (10 barrels of oil or 60,000 cubic feet of gas).
Crude oil is produced in over half of U.S. states The top five crude oil-producing states and their percentage shares of total U.S. crude oil production in 2022 were: Texas42.5% New Mexico13.3% North Dakota8.9% Colorado3.7% Alaska3.7%
Currently, there are 136,286 wells stored online. This information is shared with the Kentucky Geological Survey (KGS) to assist in the compilation of oil and gas data.
The overall Statewide average total depth is 1,436 feet (from more than 118,000 wells in the Kentucky Oil and Gas Well Record Data Base).
Oil & Gas Permits An Application for Permit shall be filed with the Division of Oil and Gas before a well is drilled, deepened or re-opened for the production of natural gas, crude oil, water supply for enhanced recovery, or injection into a reservoir for the purpose of enhanced recovery.
The Division of Oil and Gas of the Kentucky Department of Natural Resources regulates the oil and natural gas industry in the commonwealth and conserves and protects oil and gas reserves in Kentucky.
Kentucky imposes a severance tax on 4.5% of the gross value of minerals, importantly herein coal, extracted in the state.