KGS Open File Report 98-56--1998 Oil and Gas Production--Continued
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Oil production in Kansas is available in databases of the Kansas Geological Survey for the first six months of 1998. The production data was generated by the Kansas Department of Revenue. Monthly production displays a decreasing trend through the first six months of the year (Figure 1). The average wellhead price has continued to decline and should result in continued monthly production declines through the remainder of 1998. Monthly production was used to generate a cumulative production curve for the first six months of 1998 (Figure 2). Extrapolation for the remainder of the year provides an estimated 1998 production of just over 29 million barrels of oil (Figure 2 and Table 1). If this estimate is correct, the annual production decline from 1997 to 1998 will be over 10 million barrels (Table 1 and Figure 2). Monthly production and average wellhead price were used to generate a cumulative wellhead value for oil production for the first six months of 1998 (Figure 3). Extrapolation for the remainder of the year provides an estimated 1998 production value of approximately $342 million dollars (Figure 3 and Table 1). This estimated value for oil at the wellhead is a decrease of $400 million (>50%) from the 1997 wellhead value. It is probably not an overstatement that a decline of this magnitude can have a significant impact on the Kansas economy.
| Figure 1 - Kansas monthly oil production, and average monthly wellhead price for 1998. A larger version of this figure is available. |
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| Figure 2 - Kansas monthly and cumulative oil production for the first six months of 1998. Annual production for 1998 is estimated by extrapolation of the cumulative production curve. A larger version of this figure is available. |
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| Figure 3 - Kansas monthly and cumulative value of oil production for the first six months of 1998. Value of annual production for 1998 is estimated by extrapolation of the cumulative value curve. The estimated value of $342 million is consistent with the estimated annual production volumes and average wellhead prices. A larger version of this figure is available. |
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