Oil and Gas Facts
Kansas' oil production is dominated by stripper well production operated by small independent companies. In 1998, a total of 36,885 wells representing over 98% of the producing oil wells in Kansas averaged less than 15 BOPD and would be classified as stripper production. These stripper wells produce approximately 75% of total Kansas' oil production.
In 1999, 2,273 different operators reported oil production in Kansas. The average Kansas independent produced just over 15,000 barrels of oil in 1999. The top ten producing companies produced approximately 25% of the oil in 1999. All ten top producing companies are independents. Five of the top ten producing companies are headquartered and primarily operate in Kansas (Oklahoma 2, Texas 3). Independent operators dominate Kansas' oil production. It is estimated that large integrated petroleum companies control less than 5% of Kansas' oil production (e.g., BP Exxon-Mobil, or Texaco).
In 1999, there were only 20,770 oil and gas well completions in the U.S., down from a peak of 70,000-85,000 wells per year in the period 1980-1985. The average drilling rig count was only 623 per week in 1999, the lowest since the 1940's. Since 1940 the highest weekly US rig count was 4,530 recorded on December 28, 1981. The lowest rig count of 488 was recorded on April 23, 1999. With the recent rise in prices the number of active rigs has increased to just over 1,100 (1,114 on 12/29/00). This is probably near the maximum that our present energy infrastructure of rigs and trained crews can support.
In Kansas, average drilling activity reached a historical low of 3 per week in 1999. In 1982, over 200 deep rigs worked in Kansas. In 2000, with the increase in oil and gas prices, the active deep rig count has increased to approximately 25-30 (25 on 12/29/00). Workover rigs increased from 60 to 80 rigs at work to 150 to 170 rigs at work. Again, the infrastructure and trained personnel in the Kansas oil and gas industry has been decimated. Our current activity is probably the maximum activity that can be supported without a major increase in equipment and personnel.
Kansas gas production is dominated by the large fields of southwest Kansas (e.g., Hugoton, Panoma, Byerly, Bradshaw, and Greenwood). The fields in this area of the state produced 90% of the gas in Kansas. However, stripper gas production in Kansas is significant. In Kansas, 63% of the 17,146 producing gas wells averaged less than 90 MCFPD and produced 24.1% of the gas. As with oil, stripper gas production is sensitive to changes in the wellhead price and well operating costs (e.g., electricity, taxes, and wages).
In 1999, 1,015 different operators reported natural gas production. The average Kansas independent produced just less than 550,000 mcf of gas in 1999. The top ten producing companies produced approximately 78% of the gas in 1999. Seven of the top ten producing companies are independents. Kansas' gas production is a mix of the largest integrated companies (e.g., Exxon-Mobil and BP-America) and independent companies (e.g., Anadarko and Helmrich & Payne).
Acknowledgment. Data taken from the 2000 Kansas Energy Report prepared for the Kansas Legislature by Tim Carr and Scott White of the Kansas Geological Survey and KU Energy Research Center.