By JOHN P. TRETBAR
Kansas oil producers set another unwelcome record last year. According to the Kansas Geological Survey, total oil production in the state reached 35.82 million barrels. That includes an additional of 2.85 million barrels in December. The total is over two million barrels less than last year and marks the lowest annual production since 2005.
Ellis County continues to lead the way with an additional 213,000 barrels in December for a yearly total of 2.64 million barrels. Next comes Haskell County with 2.45 million barrels for the year. Barton County was next, with an annual total of 1.699 million barrels. Finney County had total production last year of 1.63 million barrels. Russell County’s total for the year was 1.599 million barrels. Stafford County brought its total for last year to 1.049 million barrels of crude.
Here are the annual totals for the top ten producing counties in Kansas:
Ellis County: 2.643 million barrels
Haskell County 2.453 million barrels
Barton County: 1.699 million barrels
Finney County: 1.636 million barrels
Russell County: 1.599 million barrels
Rooks County: 1.592 million barrels
Ness County: 1.484 million barrels
Stafford County: 1.049 million barrels
Harper County: 996,000 barrels
Barber County: 948,000 barrels
(Source: Kansas Geological Survey)
Operators filed 50 permits for drilling at new locations across the state last week, 27 east of Wichita and 23 in western Kansas, including one permit each in Ellis and Stafford counties. So far this year we’ve seen 333 new permits filed. Operators filed 145 new drilling permits across Kansas in February.
Independent Oil & Gas Service notes 29 new well completions over the last week in Kansas, 339 so far this year. There were 18 completed wells reported in eastern Kansas, and 11 west of Wichita, including one dry hole in Barton County. Independent reported 136 new well completions across the state last month.
Baker Hughes reported 990 active drilling rigs across the US last week, up four oil rigs and one gas rig. In Canada there was another seasonal drop, down 54 to 219 active drilling rigs. Independent Oil & Gas Service reports 15 active rigs in eastern Kansas, up six, and 26 west of Wichita, which is down one for the week. Operators report drilling ahead on two leases in Stafford County. They’re moving in completion tools at two sites in Barton County, four in Ellis County, two in Russell County and one in Stafford County
The Kansas Geological Society recognized and named five new oil fields in Kansas during a meeting last month. That’s five so far this year, including the Beran South Field in Barton County.
Injured oil-field workers in Oklahoma can now sue well operators for injuries suffered on a drilling rig. That’s according to a ruling from the Oklahoma Supreme Court. A law under court challenge said operators could be sued only in worker’s compensation court, and not in civil court. Justices called that unconstitutional, a “special law,” that gives preferential treatment to oil rig operators.
The boom in Texas shale production, along with displaced homeowners after Hurricane Harvey, have prompted a nearly ten percent growth in hotel revenue in Texas. The consulting firm Source Strategies tells the San Antonio Express News that the lodging industry reaped $10.9 billion in revenue last year, up from $10 billion the year before. About one fourth of that was generated by residents affected by the Harvey storm system. But the consultant asserts that the booming oil and gas sector would have propelled hotel receipts upward without the storm.
A lingering problem for heavy crude producers in Canada may be coming to an end. Analysis by Bloomberg shows the discount of Canadian crude to the near-month contract for WTI is about $25/bbl. But contracts for later delivery are trading at less than $20 below the US benchmark. Canadian prices have plummeted because of pipeline slowdowns and the lack of other transportation options.
Reuters is reporting at least 11 major oil companies have agreed to buy back billions of dollars worth of stock. The list includes Chevron, Devon Energy, Hess Corp and Noble Energy. Companies have reportedly committed to buy back about $3.6 billion in stock shares since February.
Lawmakers in North Dakota this week unanimously agreed to tighten requirements for royalties as well as oil and gas spills. The Department of Mineral Resources said the 43 changes would require what it called “sundry” notices for spills not responded to with adequate resources, as well as site assessments before and after reclamation if necessary, and changes in royalty information statement requirements.
Russia plans to sharply increase fuel exports and carve out a larger share of the European market. Reuters reports the initiative follows a rigorous $55 billion refit of the country’s refineries. Russia embarked on a modernization of its biggest refineries in 2011 following a fuel shortage crisis. That modernization is ongoing. It has already led to a surge in output of light oil products, including diesel fuel exports that have hurt European refineries’ margins.