Energy Production

Overview

Natural gas and petroleum are the most important energy resources in Kansas, accounting for nearly all primary energy produced in the state. Energy production in Kansas peaked in 1967 at 1573 trillion BTU. In 1999, primary energy production had declined to approximately 912 trillion BTU (Figure 13). Natural gas production peaked in 1970 at 900 billion cubic feet (bcf)¹⁰. Petroleum production peaked in 1956 at 124 million barrels (bbls). Of the U.S. states, Kansas is ranked 7^th in natural gas production and 8^th in oil production¹¹.

In 1999, a total of 912 trillion BTU of energy were produced in Kansas with 63% from natural gas (566 bcf), 22.0% from petroleum (34 million bbls), 11 % from natural gas liquids (NGL; 34.4 million bbls), and less than 1% from coal (414,000 short tons). The break down of Kansas energy production for 1999 is shown in Figure 14. Since 1960, total energy production in Kansas has dropped by 30%. The majority of this decrease in energy production can be attributed to decreased oil production. Oil's share of the total energy produced in the state has dropped from nearly half of energy production to 22% in 1999 (Figure 13).

Estimates from the Kansas Corporation Commission and the Kansas Geological Survey put 2000 Kansas production at over 34.3 million barrels of oil and at 550 billion cubic feet of gas (Figure 15). Estimated 2000 production is a conservative extrapolation of reported production for the first eight months of the year. The final reported production numbers are expected to be slightly higher. From 1999 to 2000 oil production shows an estimated marginal increase, and gas production remains flat or decreases slightly. Using estimated 2000 average monthly wellhead prices for oil and gas in Kansas, the value of the oil and gas produced in the state is approximately $3.046 billion. Wellhead value in 2000 is an increase of over $1.4 billion dollars from 1999. The increase in total wellhead value is a result of increased prices, especially for natural gas. In 2000, the value of natural gas production ($2.052 billion) is more than twice the value of oil production ($0.924 billion). The significance of the value of Kansas’ oil and gas production relative to other parts of the Kansas economy is illustrated by a comparison to agriculture. Over the past 40 years, the value of Kansas oil and gas production is comparable to the value of total statewide crop production as measured by the cash receipts for all the crops produced in the state (Figure 16). In 2000, the wellhead value of Kansas oil and gas production may exceed the value of Kansas crop production.

Figure 13 - Kansas total energy production peaked in 1967. The biggest decline in energy production has been in crude oil.

Figure 14 - In 1999, natural gas accounted for approximately two-thirds of Kansas primary energy production. Total primary energy production was 912 trillion BTU.

Figure 15 - Kansas oil and gas production from 1951 until 2000. In 1956, oil production peaked at 124 million barrels of oil (mmbo). A second peak in oil production occurred in 1984 at 76 mmbo. Gas production peaked in 1970 at 900 billion cubic feet (bcf). A second peak in gas production of 764 bcf was recorded in 1996. A conservative estimate of production in 2000 is 34 mmbo of oil and 550 bcf of gas.

Figure 16 - Wellhead value of Kansas hydrocarbon production compared to cash receipts for all crops. Estimated wellhead value for 2000 is $3.046 billion and represents an increase of $1.4 billion from 1999. Over the past 40 years, the value of Kansas oil and gas production is comparable to the value of total statewide crop production as measured by the cash receipts for all the crops produced in the state.

Updated January 2001
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