American Oil and Gas Reporter - August 2015 - 130
ConventionSection: Eastern Kansas Oil & Gas Association
Eastern Kansas Optimistic
Despite Oil Price Fears
By Dan Holder
CHANUTE, KS.-As the Eastern
Kansas Oil & Gas Association prepares
for its 58th annual convention, to be held
Sept. 15-17 at the Prairie Band Casino
and Convention Center in Mayetta, Ks.,
its members have seen industry conditions
steadily deteriorate during the past several
months but with a bottoming out or slight
improvement in early summer, assesses
EKOGA President Steve Stanfield,.
"In general, the activity for the past
three or four years has been very positive,"
says Stanfield, president of Consolidated
Oil Well Services LLC in Chanute. "There
has been a lot of development, and that
is good for the state's economy as well
as for job creation. I continue to be en-
couraged by that."
Looking at the larger economic picture,
Stanfield states that pricing conditions,
piled atop legislative and regulatory uncertainties, have made this a challenging period
for the oil and gas industry. As the head of
a service company, he says he feels the
pains of the entire well servicing sector,
which has seen the high activity levels of
the past three years decrease considerably.
"Because the service companies generally are labor-intensive, it has been challenging to make the math work," Stanfield
acknowledges. "Most companies have had
to do some cutting. I know, in particular,
my company has had to cut back considerably. At the end of the day, it is a very
challenging period for the industry. That
means all of us, whether producers or
130 THE AMERICAN OIL & GAS REPORTER
service companies, have to be innovative
in the ways we run our businesses and
creative in solutions to problems and issues.
The strong ultimately will survive."
Although the Kansas Corporation Commission's Oil & Gas Conservation Division
has done a good job plugging thousands
of high-priority abandoned wells, thousands
of lower-priority remain, and EKOGA
Rules and Regulations Committee Chairman David Bleakley says the state's fiscal
struggles could threaten ongoing plugging
activities. During the Kansas Legislature's
budget negotiations in recent sessions,
lawmakers have swept money from a
range of dedicated funds, including the
industry-supported Conservation Fee Fund.
Bleakley points out this has happened
to make up the funding withdrawn from
American Oil and Gas Reporter - August 2015
Table of Contents for the Digital Edition of American Oil and Gas Reporter - August 2015
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