Tuesday, November 27, 2012
Is Kansas heading for another oil boom? That was the question for experts in the oil and gas industry Tuesday.
Gov. Brownback’s office brought industry leaders together in Hutchinson. They expect oil will boost our economy.
We've been talking about the new oil exploration in Kansas for some time. But in Hutchinson, we heard from the experts about how real, how big and how long this new Kansas oil exploration might be.
Kansas oil – in decline for years – is no longer in decline. That’s becoming more obvious to those keeping up with the industry.
Subfreezing temperatures didn’t deter close to 600 people from lining up for the largest economic conference the governor’s office has put together. They want to learn the scope of the state’s oil exploration.
Oil companies are drilling in what’s known as the Mississippian lime play in Kansas. The most active driller in Kansas is the SandRidge Energy. SandRidge currently has about 100 horizontal wells with more to come.
"Our footprint in Kansas is very big and it's going to continue to get bigger,” says SandRidge President and CEO Matt Grubb. “In 2013, we plan to drill, call it, 180 to 200 wells in Kansas."
Grubb says there’s tremendous potential for oil in Kansas. He says SandRidge will spend about $700 million in Kansas next year alone.
Wichita-based Woolsey Operating Company just started drilling its tenth horizontal well in the state.
"We think that the state of Kansas is going to be significant," says Woolsey Operating CEO Wayne Woolsey.
It’s leading to new jobs, leaders say. As far as how long it could last, Shell Oil’s David Todd says Shell is planning to be here for decades. SandRidge says the same.
"I'm very encouraged,” said Gov. Sam Brownback. “And I think the proof is in the pudding, too, as you're seeing more resources, more dollars come into the Kansas oil field now than you did a year ago."
So, the experts say this energy play is for real and should help boost the Kansas economy for years to come.