American Oil and Gas Reporter - January 2012 - 215

imports from countries and regimes that
would like to destroy our way of life.
It is imperative that our government officials understand the great extent to which
the country's fiscal problems stem from
government spending. These problems
cannot be solved by raising businesses' or
individuals' taxes. Again, we rely on our
lobbyists to be our voices and relay the policy message that focuses on tax provisions
that promote jobs, reduce the deficit, and
increase our national security.
Manufactured Controversy
In Kansas, lobbyists are working hard
on a heated issue concerning hydraulic
fracturing. This is an issue that, during my
time as EKOGA president, I also will be
involved in. It is imperative to correct the
erroneous conceptions involving fracturing and to bring the actual facts to our policymakers' attention. Environmental
groups continue to establish barriers to this
tried and true practice, which has been implemented without incident in thousands
of Kansas wells since the 1940s.
If the root of this controversy originates
in simple ignorance about the fracturing
process or from a few debunked studies,
then the issue's successful resolution will
be quick and easy for all parties involved.
Steps already have been taken toward dispelling anti-development arguments with
FracFocus.org, a website that allows operators from across the nation to voluntarily
submit information disclosing fracturing
fluids' components. By willingly submitting this data, we are giving strong evidence to refute the arguments that a federal reporting program is needed.
I have to believe that a majority of our
policymakers have the common sense to
understand, or the intellect to learn, that this
practice not only is safe, but also is an important component to this country's energy security. Since it appears that the fracturing controversy centers on the massive
fracs used in horizontal wells, common
sense suggests extended laterals can replace the many vertical wells otherwise
needed to access the same amount of production zone.
Each well obviously has to penetrate
shallow freshwater zones; however, multiple casing strings and Kansas Corporation
Commission-mandated cementing requirements isolate the fresh water zones
from the much deeper oil and gas bearing/producing zones. Additionally, it does
not take a professional analyst to conclude
that fracturing tight gas bearing shale and
coal formations in horizontal wells has contributed greatly to reducing and stabilizing
gas prices, and has added to the abundant
supplies that benefit U.S. consumers.
In a 2006 AOGR article, (prior to sig-

nificant shale/coal gas production) an analyst predicted the U.S. natural gas industry
never would be able to drill enough gas
wells to change the production decline
curve, let alone meet the forthcoming anticipated demand growth, and price spikes
like that of December 2005 would be normal until liquefied natural gas could be imported from countries with abundant supplies of cheap gas. Today, we have truly
cheap gas prices and more supply than we
can store; mostly because the industry discovered how to unlock gas trapped in tight
formations by utilizing large hydraulic fracturing stimulations. Since 2006, shale
gas production has increased from less than
6 percent to 30 percent of this country's
natural gas supply.
The practice of hydraulic fracturing vertical oil and gas wells in eastern Kansas is
vital to the continued development of almost all the region's leases. This area's oil
and gas production may seem miniscule
in the scope of total U.S. production, but
without the process, eastern Kansas oil and
gas production will be irrelevant or nonexistent.
Pride And Roots
Kansas Governor Sam Brownback
took an oil and gas field tour last fall that
highlighted some new technologies implemented to develop and broaden the industry throughout Kansas and the nation.
Governor Brownback commented on the
"environmentally conscious" company
and said, "The fact that this level of economic activity is taking place when times

are tough is good to see. It means jobs and
income to Kansas."
I believe with Governor Brownback in
office, our state will see a return to fiscal
responsibility without resorting to burdensome tax increases and unnecessary
regulation to hamper economic growth. He
also understands how unnecessary and irresponsible regulation can hamper economic growth. Born, raised and educated
in eastern Kansas, this is not just a job to
Governor Brownback, it is also about
pride in his roots.
Pride in who we are and what we come
from is part of the reason I felt honored to
have been asked to serve on EKOGA's
Board of Directors in 2001. While I initially
responded that my small company was insignificant, I was reassured that BG-5 was,
indeed, important to the organization, as
were all oil and gas producers in Kansas,
regardless of size. After accepting the position, I realized the value of being part of
such an organization, the opportunity to network with industry colleagues and the
ability speak with a unified voice to our lawmakers and regulators has proven of great
value to my company and myself.
It is my opinion that every oil and gas
producer in Kansas-regardless of size or
locale-should join EKOGA. It is also my
vision to see EKOGA membership increase greatly during my presidential
term. I hope to reach out to all producers,
large and small, in an attempt to unite for
the common causes important to the future
and continuing success of eastern Kansas'
oil and gas industry.
❒

Illinois Oil
& Gas Association

KIMBERLEY OELZE
Secretary/Treasurer
Oelze Production Co. LLC
Nashville, Il.

from the president
On March 3-4, 2011, the Illinois Oil and
Gas Association celebrated its 65th Annual
Meeting. Illinois' first year of crude oil production was in 1889 and it first produced
natural gas in 1882. Crude oil production
peaked in 1940, followed by the natural gas
peak in 1944. Some of the first major oil
and gas companies with leases and production in Illinois were Magnolia, Gulf and

Texaco, to name a few.
It is said that the first well fracture treatment occurred in Illinois. The Illinois oil
industry has a history of hardworking people whose wise development of natural resources helped develop the state and build
a great nation.
Last year our association focused on
keeping its 400+
members up to date on
state and federal laws
and regulations. We
also remained constantly vigilant about the
attacks on our industry by both state and
federal administrations, which helped
make 2011 one busy year. From a historical perspective, it appears we enjoyed one
of our best years, but issues are lurking as
we move into 2012.
JANUARY 2012 215

American Oil and Gas Reporter - January 2012

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