Yep, we are seeing the same thing here in the foothill oaks. The extended drought conditions have stressed the trees and beetles are having a field day. Saw this in the pines up in Big Bear and Arrowhead 5 years ago but that beetle cycle seems to be winding down now.
Water is probably the only long term solution and mother nature sent it all to Boston this year. I am less enthusiastic about pesticides as a short term solution. Effectiveness seems pretty low for oaks in distress and it isn't cheap.
This is a long time friend in the Dept. of Entomology at UCR where they study these pests in great detail. John may be able to direct you to the person who is currently studying this problem and has the most current answers/solutions.
http://www.entomology.ucr.edu/faculty/heraty.html