Natural gas production from wells around the state last year was the highest in history, though the numbers only slightly increased from 2005, the state Department of Environmental Conservation announced Monday.

Total production was about 55.2 billion cubic feet, which has an estimated value of $413 million and is enough to meet the annual demand for 800,000 homes. About 42 billion cubic feet, or nearly 80 percent of the total production, came from the Trenton Black River formation that runs through Chemung and Steuben counties in the Finger Lakes region.

“Natural gas production from wells in New York State provides additional supplies of a cleaner burning fuel, helping to meet our energy needs while also benefiting the upstate economy,” said DEC Commissioner Alexander “Pete” Grannis. “Private investments in new production, especially in the Trenton Black River formation, are expected to increase in coming years.”

While last year’s production only slightly eclipsed 2005 totals, extraction of natural gas has more than tripled over the last decade, due largely to the discovery of the vast Trenton Black River site, which extends from Ontario, Canada into West Virginia. The Black River’s oil reserves in New York were discovered in 1996. Since then, private oil and gas companies have invested $825 million in developing the part of the formation that runs through the Southern Tier, according to the DEC.

The formation is home to only 84 of the state’s 12,000 oil and gas wells. The most prolific well, located in Van Etten, Chemung County, pumped out nearly 4 billion cubic feet of gas, enough to heat 57,000 homes for a year.

An industry official said that while the numbers are good, they come after a long period of losses.

“It’s certainly a reflection of a healthier industry, but it’s long overdue,” said Brad Gill, head of the state Independent Oil and Gas Association, which represents a cadre of oil and gas producers. He said flat prices over the last decade or so have led to the loss of 750,000 jobs nationally and that while the price of oil has recently doubled, so has the cost of drilling.

The DEC issued 622 well-drilling permits last year, the most in more than 20 years and almost 200 more than in 2005. The cost of a permit can run from $500 to $2,500 depending on the depth of the drilling. DEC officials said they expect production to level off unless new discoveries are made.

“The question is: How long will they be able to sustain this production?” Gill said. “The jury’s still out on that one.”

Twenty states produce more natural gas than New York, according to the U.S. Energy Information Administration. Texas by far produces the most, with Oklahoma, New Mexico and Wyoming near the top but with much lower levels.

The DEC Monday also announced that almost 320,000 barrels of oil were produced in New York last year, a 51 percent increase from 2005.

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