American Oil and Gas Reporter - July 2020 - 73

ConventionSection: Kansas Independent Oil & Gas Association
The list includes the inevitability of a
U.S. oil production drop and the dueling
natural gas market factors of less associated
gas output versus slumping liquefied natural gas exports.
"I had gotten calls from federal policymakers asking about KIOGA's take on
the markets," Cross explains. "Like everyone, they want to know what will happen
in the future. I wanted them to see how
we got here, understand the fundamental
issues, and realize what our members are
looking at. Nobody knows exactly what
prices will do, but they should be preparing
their budgets for this year and the year
forward. I wanted policymakers to know
nobody here is planning on oil jumping
back up anytime soon."
The key, Cross says, was striking the
correct tone, and neither despair nor
Pollyannaism would do. "One member
told me he hoped I was wrong to say oil
and gas companies should prepare for
$20-$35 oil this year," he chuckles. "That
figure came from researching numerous
sources and picking a range. I also hope
it is on the low side."

Bleakley suggests the pandemic offers
the public a teachable moment about energy's importance that is far more vivid
than any theoretical scenario. "Plenty of
people believe we do not need fossil
fuels anymore and say we should stop
using them because they are changing
the climate," he observes. "With all the
cars off the road this spring because of
the COVID-19 lockdown, the world still
used 70 MMbbl/d-75 MMbbl/d of fossil
fuels for necessary activities such as deliveries, grocery shopping, healthcare
visits and commuting to work in essential
businesses.
"Currently, alternative energy sources
consist of a small portion of the total
energy picture," he continues. "Without
fossil fuels, it would be difficult to meet
transportation needs, as mass transit is
not available to all and conversion to
electric transportation vehicles will not
happen overnight. Electric cars are expensive and will drive up the cost of
electricity, hurting the poor and those
on fixed incomes. Larger power plants
will be necessary, requiring more sources

of energy to produce the increased electricity demand. Our country needs reliable
and affordable energy sources available
to all. The distribution systems are currently in place for fossil fuels, and our
industry plays an important role in delivering this reliable and affordable
energy to everyone."
Valuable Help
Like most in KIOGA and the rest of
the industry, Bleakley says, "Our company
also had to take the necessary actions to
reduce expenses. The next shoe may drop
when the Paycheck Protection Plan money
runs out for many. Depending on where
the price of oil is at that point, some
companies may not be able to make it
through this year."
Along with scrambling to persuade
the Kansas Department of Revenue to
halve the projection in its price guide for
tax purposes from $46 to $23 a barrel,
KIOGA's undertakings during the earliest
days of the crisis included keeping members informed and engaged with daily
updates, on which Bleakley says Cross

KIOGA Education Foundation
The KIOGA Educational Foundation (KEF) has given out
six grants to date. We are in the process of taking applications thru the end of December to award other Kansas
Schools for their STEM (Science, Technology, Engineering
and Math) projects. If you know a school that would fit in
this catagory, please have their school contact us.
Grants awarded to date:
Derby North Middle School - Derby, KS
Gordon Parks Academy - Wichita, KS
Heller Elementary - Neodesha, KS
Marshall Elementary - Eureka, KS
Victoria Elementary - Victoria, KS
Spaght Science & Communications - Wichita, KS
If you are interested in donating to the the program,
contact KEF at kef@kioga.org.
Check out the new Facebook page.
JULY 2020 73

http://iogsi.com

American Oil and Gas Reporter - July 2020

Table of Contents for the Digital Edition of American Oil and Gas Reporter - July 2020