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	SENATE ENERGY AND NATURAL RESOURCES COMMITTEE Topeka, KS 22 February 1989

KANSAS LEGISLATORS

Good news for Kansas... You won't have to wait for a rebound in oil prices.
The reason: The domestic energy industry's future is natural gas, not oil. And Kansas is long on gas.
Majors; outer continental shelf, overseas operations.
Independents; stay mostly on mainland, focus on gas.
Most domestic oil has been found, produced... Like the El Dorado field near Wichita; played out.
Gas supply and demand scenario; Balance early '90s.
Price predictions: Spring '89, $_/Mcf; $_/Mcf by mid-'90
Domestic exploration not profitable: $.59 return/$1, 1982-85.
2/20/88 Rig Count: 766
No substantial drilling until gas hits $5/MCF with expectations of $10
We're ready to play the game; mentally & physically
As legislators... be aware of natural gas
Thank you