Crude Intelligence
← Research library
White PaperKansas UpstreamSeptember 15, 2026

Kansas Drilled the Wells. It Never Finished Them.

Kansas produced 25,398,168 barrels in 2025 from 47,494 producing oil wells — an average of 1.46 barrels a day, with 61% of wells below one barrel a day. This paper argues the constraint is completion practice and capital allocation, not resource: the state produces from eighteen stratigraphic zones, a single locality can host twelve pay zones, yet about half of producing fields are developed as single-pay fields. It makes the case for acquiring existing cased wellbores and recompleting stacked pay instead of drilling new locations.

Download paperPDF · 38 pages · 9 downloads

Key findings

$5.0B

Net wellhead revenue behind casing

71.2 MM

Barrels recoverable, base case

$368M

State and local tax forgone by 2035

Methodology

The paper benchmarks a base-case plug-back-and-perforate recompletion against a new 3,500–4,500 foot infill well at $88 per barrel wellhead and 80% net revenue interest, then scales the result statewide under a scenario where 15% of producing wells carry an untested or under-drained zone worth 10,000 incremental barrels. Public revenue is modeled at the combined ~8% state and local rate against the 4.24% annual decline recorded since 2023, including the seven-year severance tax waiver for qualifying production enhancement projects.

The statewide barrel and revenue figures are scenario outputs, not forecasts. They depend on the 15% qualifying-well share, the 10,000-barrel incremental assumption per wellbore, and an $88 price deck — each stated explicitly so the reader can substitute their own.

What the scenarios show

Exposure caseShare modeledAnnualized exposure
Recompletion capital intensityBase case~$5,700 per incremental bbl/d
New infill wellComparison$15,000–$17,600 per incremental bbl/d
Break-even rateBase case~4 bbl/d — top 6% of Kansas wells

Kansas waives severance tax for seven years on incremental production from a qualifying production enhancement project, and names recompletion to a different zone in the same wellbore as qualifying. A new well is taxed from its first barrel.

Data sources

  • —University of Kansas, Institute for Policy and Social Research — Kansas Statistical Abstract, energy and minerals tables
  • —U.S. EIA, Distribution of U.S. Oil and Natural Gas Wells by Production Rate, 2025 report
  • —Kansas Geological Survey — Subsurface Geology Series 9, Open-File Report 99-22, Oil and Gas Investigations 16
  • —Kansas Department of Revenue — Minerals Severance Tax (MT-6)
  • —Kansas Corporation Commission — Abandoned Well Plugging Update and rules for oil and gas conservation
  • —U.S. Department of Energy / NETL reservoir class field demonstration reporting