An evaluation of known remaining oil resources in the state of Kansas: Project on advanced oil recovery and the states. Volume 4 Page: 56 of 94
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producible. If prices were to increase to $28/B, however, two additional projects could become economic
and would add 72 million barrels of incremental reserves. The 80 million barrels of incremental reserves
potential at $28/B represents 27% of Kansas' 1991 proved reserves (300 million barrels). If oil prices
were to reach $36/B, one thermal project could become economic, and would contribute 20 million barrels
of incremental reserves. Under implemented technology, high chemical costs preclude the implementation
of chemical floods in Kansas at oil prices of $36/B or less. Of the reservoirs evaluated in this analysis,
less than 7% would be economic to develop with current EOR technology at oil prices of $36/B or below.
Table IV-IB displays the number of economic EOR projects by process. In most cases, the economic
projects are in the large reservoirs, but size alone is not a major determinant of EOR economics.
Figure IV-1B displays the potential annual production from Kansas EOR projects at oil prices of
$24/B and $32/B. At $24/B, over 73% of the potential reserves could be produced by the year 2005.
Annual production could peak in the year 2003 at 800,000 barrels per year, only marginally increasing
Kansas' annual production rates. At $32/B, the additions to annual production could be much more
substantial. Annual production from EOR projects could peak in the years 2002 and 2003 at 7.9 million
barrels per year. By the year 2005, over 85% of the incremental EOR reserves could have been produced,
averaging nearly 4.9 million barrels per year. This average production through 2005 would be a 9%
increase to Kansas' 1991 production rate (56.9 million barrels per year).
2. Increases in State and Local Revenues
BOR production could increase state and local revenues through production taxes, sales taxes on
purchased materials used in the projects, and state corporate and personal income taxes. The estimated
revenues are generated directly from oil production or operations in the analyzed Kansas reservoirs. A
significant portion of these revenues result from corporate income and sales taxes (Figure IV-2). As
discussed in Chapter III, BOR projects are exempt from production taxes, thereby eliminating most of the
taxes directly associated with production. The implementation of EOR processes could generate $6
million in additional state and local tax revenues at an oil price of $24/B. As potential reserves increase,
so do potential tax revenues; state and local revenues could increase by $69 million as prices rise to $28/B
for a total potential of $75 million. When the thermal project becomes economic at $36/B, direct state
and local revenues could increase to over $110 million.B1264KS4
IN-2
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An evaluation of known remaining oil resources in the state of Kansas: Project on advanced oil recovery and the states. Volume 4, report, November 1, 1993; United States. (https://digital.library.unt.edu/ark:/67531/metadc793989/m1/56/: accessed May 1, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.