Overview of Kansas Energy Production

Over the last century nearly 6 billion barrels of oil have been produced in Kansas with an estimated 9 billion barrels still remaining in developed fields. Nationally, Kansas ranks 10^th in oil recovery at 100,000 barrels per day and 8^th in natural gas production with nearly 8 trillion cubic feet of remaining reserves in existing fields. Over 650 billion cubic feet of gas have been produced on an annual basis during the past few years, of which 40% is currently exported to other states. This relatively clean fossil fuel makes natural gas an important option for both transportation and electrical power generation. Reserve additions in Kansas amounted to 8 million barrels between 1997 and 1998 as reported by EIA and stand at 246 million barrels in 1998. Natural gas reserves have declined and now stand at 6.8 TCF in 1998.

Petroleum production is a $2 billion dollar business in Kansas rivaling the value of cash crops in the state. Petroleum will remain important to the Kansas economy for many years to come if industry partnership is maintained and technology transfer and energy policies are effective and constructive. In particular, sustaining this resource requires R&D and technology transfer to small operators in the state who have no research component of their own. Lessons learned and new, cost–effective technologies developed here will be transferable to other mature petroleum areas worldwide.

The transition from fossil fuels to alternative energy will not significantly occur in the early part of the 21^st Century without a change in technologies or policies to make alternative fuels economic. Petroleum production will extend well into the next century based on current trends and government projections. Global energy issues through the next century include maintained access to foreign energy resources, advance of policies and technology that support energy development.

Issues for Kansas include: 1) maximize and extend the recovery of the fossil energy resource into the next century and 2) facilitate alternative energy uses of remaining fossil energy and, 3) develop renewable energy sources that are appropriate for Kansas.

Kansas Energy Consumption

To meet its own energy requirements, Kansas relies primarily on petroleum, natural gas, and coal almost in equal shares. Most of the power generated at electric utilities in Kansas comes from coal and nuclear power. Kansans’ average use of energy per person in 1997 was 397 million Btu, 13 percent above the Nation’s average rate of 351 million Btu. Kansas ranks 38^th in cost of total energy including rank of 47^th in cost of coal and 23^rd in cost of electrical generation.

Kansas consumed 1,033 trillion BTU’s of energy in 1997 while producing 1,046 trillion BTUs. Kansas is one of the few states that produces more energy within the state than it consumes.

Oil currently provides 22% of the state’s energy production, peaking at 48% of the state’s total in 1960. Kansas has ranked in the top 10 oil-producing states for many decades with a current ranking of 8^th. Until the 1973 Arab Oil Embargo, Kansas produced more oil than it used. Production peaked at 124.5 million barrels (bbls) in 1956 and was followed by a steady decline to 56 million bbls in 1979. A deregulation of oil prices in the early 1980’s temporarily reversed this downward trend when increased drilling of new leases produced another peak of 75 million bbls in 1985.

Kansas 1997 Energy Production
Fuel
Natural Gas	333.5	Billion Cubic Feet
Petroleum	192.7	Thousand Barrel per Day
Coal	17.7	Million Short Tons
Nuclear	8.4	Billion Kilowatthours
Biomass	11.3	Trillion Btu
Hydroelectricity*	0.1	Trillion Btu
Other**	0.2	Trillion Btu
* May include net imports of electricity generated from this source
** Geothermal, wind, photovoltaic and solar Source: EIA

Renewable and alternative energy are less than 1% of the overall energy picture in Kansas, but will play an increasing role in the future. Kansas has the third largest wind resource in the U.S., trailing only North Dakota and Texas. Currently there are two utility-sized wind turbines in the state, which produce an estimated 3.6 million kWh of electricity per year or enough to supply 350 homes. This is negligible compared to the 38 billion kWh of electricity generated in the state, but it is a start. It’s been estimated by the American Wind Energy Association, a wind energy trade group, that there’s a potential for over 1 trillion (10¹²) kWh of wind-generated electricity annually. This would be enough electricity to supply one-third of the United States’ electricity.

Kansas is similar to many parts of California in amount of solar energy reaching the earth’s surface and favorable conditions offer considerable potential as this source of energy is increasingly harnessed. Alternative energy, in general, will harbor new ways to produce and consume energy, for example, biofuels, biomass, and fuel cells, that will directly or indirectly extend the fossil energy resource. This mix will also help ensure adequate availability of energy at low costs. Energy produced in Kansas from its own resources will preserve the energy infrastructure and be beneficial to the economy.

Changes in the fossil energy exploration and production in Kansas are anticipated to improve our energy balance during the next century. Oil fields in most of Kansas are being depleted and are in a mature stage of development. Yet, opportunities to improve recovery in existing fields and find additional production in unfound fields, particularly in the Hugoton Embayment in southwestern Kansas, offer optimism to maintain and extend our fossil energy base. Evaluation of new technologies such as carbon dioxide flooding, three-dimensional seismic imaging of underground rock layers, and horizontal drilling hold promise to open new opportunities in the petroleum sector. Carbon dioxide flooding of oil reservoirs alone could add an additional 1 billion barrels of additional oil recovery in existing fields in the state and extend the lifetimes of fields and associated economies. Moreover, the capture and injection of carbon dioxide could prove an environmentally sound use for carbon dioxide sequestered from burning fossil energy. Such technological breakthroughs have led to major improvements in production. These new and developing technologies will help to sustain this resource into the next century. Collaborative efforts among the energy sectors and the universities will help ensure successful applications.

Natural gas production in Kansas is declining for a second time and reflects the eventual depletion of the giant Hugoton Field in southwestern Kansas. A comprehensive field-wide examination of Hugoton is underway by the Kansas Geological Survey with the goal to provide technical information to make good policy decisions regarding accessing remaining resources in Hugoton Field. Natural gas from coal-beds has also proved important in recent years in Kansas and full potential in the eastern part of the State has yet to be fully realized.

Only 11 states (in order of annual oil production: Texas, Alaska, California, Louisiana, Oklahoma, New Mexico, Wyoming, North Dakota, Kansas, Colorado, and Mississippi – all producing more than 20 million bbls/year in 1998) in the U.S. are significant petroleum producers. The U.S. imports over 50% of its oil and inexpensive, plentiful energy is a mainstay of our standard of living and robust economy. Domestic energy growth rate is currently 1.4% with energy needs being dominated by oil and gas through the middle of the next century. Maintaining a policy of inexpensive and plentiful energy had shaped where and how we live, our transportation means, and has influenced the availability of most the material things that we consume. The web of travel and communication in everyday life has made us increasingly dependent on cheap and dependable energy.

The U.S. has 3 percent of the world's oil proven reserves and 4.5 percent of the world’s population, but consumes approximately 28 percent of the daily world oil production. Energy demand is growing worldwide at a rate of 1-2 % per year. The U.S. energy policy is essentially that of maintaining a supply at low cost so as not to disrupt the economy. While energy is perceived by some as a transparent, ever-present commodity that you tap into as needed via power lines and filling stations, this perception is not reality. Energy awareness and exercising prudent options in its production and consumption for the betterment of Kansans is a laudable and realistic goal. Addressing and updating our understanding about energy production, consumption, conservation, and energy research are components to a successful energy policy that will ensure that Kansans can accomplish their role in domestic energy security, if not set an example for other states.

Energy Expenditure in Kansas, 1997
	Millions of Dollars
Natural Gas	896
Petroleum	2,506
Coal	299
Nuclear Fuel	42
Biomass	8
Electricity	1,981
Cost of Fuels	381
Total	5,350
Source: EIA

Kansas' Prices and Ranking
	Dollars per million BTUs, 1995
	Kansas	U.S.	Rank
All Energy	7.58	8.28	38
Motor Gasoline	8.48	9.14	45
Petroleum	7.27	7.23	38
Natural Gas	3.21	3.81	44
Coal	1.03	1.37	47
Electricity	19.27	20.30	23

Kansas' Energy Expenditures and Rank
	Billion dollars	Share of U.S. Total	Rank
All Energy	5.4	1	31
Petroleum	2.5	1.1	32
Motor Gasoline	1.3	1	33
Natural Gas	0.9	1.2	25
Coal	0.3	1.1	31
Electricity	2.0	1	33
Source: EIA