By JOHN P. TRETBAR
Eagle Communications
Lawmakers in the fourth-biggest crude-producing state hope to ban new oil and gas drilling outright within six years, and revoke new drilling permits in the meantime. In response, the oil and gas industry is using the term "extreme force" to describe the planned public pressure campaign against moderates in the General Assembly.
According to KUSA TV-9 in Denver, draft language is already on the table and a version of the bill is expected soon.
A Midwest refinery has been offline for more than two weeks, driving a big spike in pump prices. National gasoline prices surged 12 cents in one week to $3.27 per gallon. The statewide average in Kansas rose nine cents to $2.83 per gallon. U.S. diesel prices are up 15 cents on the week. The auto club AAA says a continuing power outage in Whiting, Indiana played a significant role in the surge.
The Rotary Rig Count from Baker Hughes was 621 active rigs, down two oil rigs. The Texas tally was down two rigs, Oklahoma was up one.
Poor field conditions continued to hamper drilling activity in some areas of Kansas, but not in others. Location work has been delayed at dozens of drill sites across western Kansas. But, the Kansas Rig Count from Independent Oil & Gas Service is higher. It shows 17 active drilling rigs west of Wichita, an increase of five rigs from a week earlier. The tally in eastern Kansas was unchanged at four rigs. The statewide total is down 40% from a month ago and 38% lower than a year ago.
Kansas regulators approved 12 permits for new drilling locations last week. That's 93 permits so far this year, compared to 168 a year ago. Independent Oil & Gas Service reports 11 new well completions last week, with five in eastern Kansas and six west of Wichita. That's 148 completions so far this year, compared to 310 a year ago.
The number-three crude producing state reports a slight drop in output in December. The North Dakota Department of Mineral Resources says crude production dropped by half a percentage point from the month before to 1,273,071 barrels per day. The December numbers on natural gas production and gas capture show all-time records for both.
U.S. crude production sets another all-time record. The Energy Information Administration says in the week through February 9, output rose by 4,000 barrels per day, to 13,339,000 barrels per day, the best weekly average ever. Current output outpaces last year by more than 1.1 million barrels per day.
Crude oil exports have nearly doubled over the last two years. The government reports U.S. crude exports of more than 4.3 million barrels per day. U.S. crude imports average 6.5 million barrels per day, down by 437,000 barrels per day from the previous week.
Energy Information Administration says crude inventories rose by 12 million barrels, the biggest build in stockpiles since February of 2023. Domestic stockpiles are two percent below the five-year average for this time of year.
Drilling activity will flatten out, but mergers and acquisitions won't. That's according operators responding to the latest survey from the Federal Reserve Bank of Dallas. The report suggests activity in the oil patch of Texas, southern New Mexico and northern Louisiana held steady in the fourth quarter of last year. Most of the companies responding to the survey expect to keep capital spending flat, or slightly higher, than last year. Coming on the heels of two huge deals involving Exxon and Chevron worth more than $50 BILLION each, three out of four survey respondents said they expect the wave of big deals to continue in the next couple of years.
U.S. oil and gas employment held steady in January, with the service sector dropping more than 3,000 jobs. That's according to a new report from the Energy Workforce and Technology Council. Texas payrolls in the patch lead the way, with over 314,000 workers, outnumbering the next 11 states combined.