Thursday, May 24, 2012

Bakken 2? Oil Prosperity Comes to South Kansas; Could Be Largest Economic Impact in State History

Anthony, KAN. (CNNMoney) -- "It doesn't feel like we're in Kansas anymore. Oil rigs are springing up in farmers' fields. "No vacancy" signs hang in the windows of local motels, and a steady stream of trucks barrel through Main Streets. Along the state's southern border, the once-quiet farm towns are quickly transforming into oil boomtowns.

Hundreds of workers seeking high-paying jobs are flocking to places like Harper County, which had resorted to paying people to live there because of its declining population. Businesses are coming back from the dead and a housing shortage has caused rents to triple.

Oil companies began exploring Southern Kansas over a year ago, seeing enormous potential in the area now that new technologies like horizontal drilling and fracking have made it possible to tap into the oil-rich Mississippian Lime formation (see map above).

SandRidge Energy, which holds the most horizontal drilling permits in Kansas, estimates there are about 15 billion barrels of recoverable oil in this part of Kansas [MP: Estimates for recoverable Bakken oil range from 4 to 24 billion]. The company plans to drill 130 wells in the state by the end of the year -- up from 10 last year. And its wells are hitting oil 100% of the time.

"The oil companies aren't hitting any dry spots," said Mike Lanie, economic development director of Harper County. "This is looking like it could be the largest economic impact in the state's history, and for many people in these small towns, this will be a blessing," he added."

HT: Unknown

12 Comments:

At 5/24/2012 9:05 AM, Blogger Dollar said...

Ohhh , it won't be a blessing by the time the media gets finished with the story.

All anyone will hear about, is all the problems from the economic growth.

They will do their best to make economic prosperity sound like a bad thing.

 
At 5/24/2012 9:50 AM, Blogger Buddy R Pacifico said...

The proximity of Kansas to Oklahoma means that Kansas oil will be shipped to Cushing, OK. Cushing has had a bottleneck of oil resulting in a $20 a barrel market price penalty.

The glut of domestic oil has cramped existing pipeline infrastructure. What is being done to get all the new oil to market?

Flow reversal of the Seaway pipeline was completed earlier in May, 2012. The reversal means imported crude will not be flowing anymore in the Seaway pipeline.

A parallel pipeline will be built to the Seaway to double the flow of crude to refiners.

 
At 5/24/2012 10:21 AM, Blogger Paul said...

Buddy,

Unlike Keystone, why can all these other pipelines be built without anyone screaming their property rights are being violated via eminent domain?

 
At 5/24/2012 11:10 AM, Blogger Buddy R Pacifico said...

Paul,

The pipelines already own the property and/or the right-of-way, so no property right battles need to be dealt with.

 
At 5/24/2012 11:27 AM, Blogger Larry G said...

Oh LORD! you mean there won't be any way to blame Obama for this?

Oh.. and the trick to adding pipeline capacity?

build in existing rights-of-way.

what a NOVEL IDEA!

 
At 5/24/2012 11:46 AM, Blogger Paul said...

"Oh.. and the trick to adding pipeline capacity?

build in existing rights-of-way."

All the way from the Canadian border to the Texas coast? Brilliant insights, Larry, you should start your own newsletter.

 
At 5/24/2012 12:10 PM, Blogger Larry G said...

http://www.arcticgas.gov/Moving-Alaska-gas-from-Canada-to-the-Lower-48

 
At 5/24/2012 12:26 PM, Blogger Larry G said...

http://www.arcticgas.gov/Moving-Alaska-gas-from-Canada-to-the-Lower-48

 
At 5/24/2012 3:01 PM, Blogger Paul said...

So?

 
At 5/24/2012 3:07 PM, Blogger Larry G said...

http://www.capp.ca/getdoc.aspx?DocID=191097

http://www.arcticgas.gov/Moving-Alaska-gas-from-Canada-to-the-Lower-48

point is there are a ton of EXISTING rights-of-ways from Canada into the US.

already approved... and ready to roll like the proposed Bakken Crude oil Express

http://pipelinesinternational.com/news/pipeline_proposed_for_bakken_crude_oil_transportation/067380/#

None of these existing of new pipes on existing rights-of-way are opposed by the Prez... so what's that all about?

 
At 5/24/2012 3:10 PM, Blogger Mace said...

Wouldn't it be SUPREMELY ironic if all of this oil and gas activity gave enough economic impetus at the margin to elect Obama, Mr Anti-Fossil Fuel himself?

 
At 5/24/2012 3:17 PM, Blogger Larry G said...

that would be absolutely unacceptable.

 

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