KGS Open File Report 98-56--1998 Oil and Gas Production--Continued
Prev Page--1998 Gas Production
The US Department of Commerce's Bureau of Economic Analysis (BEA) regional input-output multipliers (see discusion above for more explanation of multipliers) were used to estimate the impact of the $238 million in decreased revenue from 1998 gas production in Kansas (tables 1 and 3a). Using final demand multipliers, the lost output to the Kansas economy is estimated at $356 million with estimated lost earnings of $46 million (Table 2a). Statewide lost employment is estimated at 3,380 (Table 3a). Direct effect multipliers can be used to estimate the impact of decreased in revenue from 1998 gas production on the Kansas oil and gas industry (Table 3b). The industry is estimated to face a decrease of $23 million in earnings and a potential decrease of 2,166 employees. Added to the effect of decreased revenue from oil production the estimated impact on the oil and gas industry is may be catastrophic. These are estimates that are subject to debate and flaws in analysis.
Table 2a - Estimated economic effects of oil prices and estimated decreased gas production on the Kansas economy.
| Estimated 1998 Decrease in Revenue at Wellhead (Million $) |
Final Demand Multiplier Output |
Final Demand Multiplier Earnings |
Final Demand Multiplier Empoyment |
Lost Output (Million $) |
Lost Earnings (Million $) |
Lost Employment |
|---|---|---|---|---|---|---|
| $238 | 1.4982 | 0.1925 | 14.2 | $356.57 | $46 | 3,380 |
Figure 2b - Estimated economic effects of gas prices and estimated decreased gas production on the Kansas oil and gas industry.
| Direct Effect Multiplier Earnings |
Direct Effect Multiplier Employment |
Lost Earnings (Million $) |
Lost Employment |
|---|---|---|---|
| 0.0984 | 9.1014 | $23.42 | 2,166 |
Prev Page--1998 Gas Production