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Kansas Geological Survey, Open File Report 98-56

1998 Kansas Oil & Gas Production and Value

by Timothy R. Carr
Kansas Geological Survey
Open-File Report 98-56


As a result of a drastic drop in oil prices and relatively soft gas prices during 1998, the overall revenue generated by oil and gas production in Kansas is expected to decrease from 1997 levels by more than $600 million at the wellhead (Table 1). This decrease will have a significant impact on the Kansas economy and employment. Using regional economic multipliers from the US Department of Commerce an attempt was made to estimate the potential economic impact to the Kansas economy and the Kansas oil and gas industry. Based on preliminary analysis the Kansas economy could receive a negative impact of $900 million and employment in the oil and gas industry could be reduced by more than 5,000 people.

Table 1 - Summary of Kansas oil and gas production, and value at wellhead for 1997 and 1998.

Year Oil Production
Barrels * 1,000
Average Price
Total Oil Value
$ * 1,000
Gas Production
Mcf *1,000
Average Price
Total Gas Value
$ * 1,000
1997 39,836 $18.63 $742,145 692,295 $2.18 $1,509,203
1998 (est.) 29,082** $11.76* $342,000 630,000*** $2.03* $1,271,000


* Average prices through November 1998. Gas price is average of spot market prices reported to the Natural Gas Clearinghouse, Inc (NGC). Oil price is the average purchase price for the best quality crude as reported by Koch Industries, Wichita.
** Estimated oil production using reported production during the first six months of 1998 (see Figure 2).
** *Estimated gas production using reported production during the first six months of 1998 (see Figure 5).

Next Page--1998 Oil Production

Kansas Geological Survey, Oil and Gas Information
Updated December 11, 1998
Send comments and/or suggestions to Tim Carr.