American Oil and Gas Reporter - July 2015 - 130

ConventionSection: Kansas Independent Oil & Gas Association
Ks., notes Kansas drilling has dropped
significantly over the past year. "We had
120 rigs running in June 2014," he details.
"Now (in June 2015) we have 51."
The nation, too, has seen a significant
drop-from an average of 1,857 rigs in
June 2014 to 885 rigs in 2015, he says.
And, estimating that each rig needs about
14 employees to run, Kansas has lost
about 1,500 jobs from the drop in oil
prices and rig count, Scheck calculates.
"We aren't seeing too many signs of
recovery yet in Kansas," he remarks.
"We have very few wells being drilled.
Through May of this year, we had 1,056
drilling permits. In the whole of 2014,
we had 7,100.
"I think the price and drilling trending

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is going to end looking more like a Ushape than a V-shape, which is what
many people were expecting," Scheck
continues. "U-shape decline curves are
harder to recover from."
However, there are some prospects
for the state's producers, he says. Some
operating companies are still interested
in the Mississippian Lime, although interest has dropped significantly. What
drilling is taking place is occurring all
across the state, Scheck adds, which
means any economic benefit isn't limited
to one area.
Most notably, though, is that KIOGA's
membership has increased from this time
last year, Scheck remarks. "Membership
numbers are up because companies are

very confident," he describes. "Many
KIOGA members have seen worse than
this, and we know it's not easy, but we
can overcome big challenges like this.
We are a very resilient bunch."
The association's increased numbers
also are likely the result of a membership
drive over the past two years, he clarifies.
"A lot of people benefit from oil and gas
production-not just drilling companies,"
Scheck says. "KIOGA has members who
are geologists, bankers, lawyers, landowners, and people who work for various
supply companies.
"It's not limited to Kansans, either,"
he mentions. "We have people from all
across the country as members. So, I
would say that is pretty good news." ❒

KIOGA Moves Convention To
Wichita's Century II Expo Hall
WICHITA, KS.-With previous annual
meetings bursting at the seams, the Kansas
Independent Oil & Gas Association will
host its 78th Annual Convention and
Expo Aug. 2-4 at a new venue: Wichita's
Hyatt Hotel and Century II Expo Center.
According to KIOGA President Edward Cross, the association expects a
good turnout, especially considering that
all exhibits will be indoors. In recent
years at Wichita's Doubletree by Hilton
Hotel, locating many of the trade show
exhibits in a covered, carpeted, air-conditioned pavilion in a parking lot adjacent
to the hotel made set-up problematic and
expensive, Cross describes.
"The Century II Expo Center was
made to host events like this," he contrasts.
"The parking lot pavilion required a roof
and floor, in case it rained, and air conditioning because Kansas Augusts typically

are very warm. But Century II has plenty
of entrances and exits to accommodate
large items. It has ample floor space, so
we have room for even more exhibitors.
Plus, it's indoors, so weather is not a
concern."
The move to Century II also brings
KIOGA attendees closer to Wichita's downtown and river walk area, Cross mentioned,
as well as the ample meeting space in the
Hyatt, which is attached to Century II.
Full Agenda
KIOGA Chairman Tim Scheck, owner
of Scheck Oil Operating Inc. in Russell,
Ks., says the association has received commitments from former Congressman Alan
B. West and energy analyst Kent Moors
to be the meeting's keynote speakers.
According to the association, West, a
retired U.S. Army lieutenant colonel, will

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