WICHITA, Kan. (AP) — The Kansas oil industry continues to face pressure because of falling prices.
The Wichita Eagle reports the cash price of Kansas Common crude oil fell below $30 a barrel this week at the NCRA refinery in McPherson for the first time since the recession. And 13 oil rigs running in Kansas last week was fewer than half the number a year ago.
Industry experts say the oil price is falling to a point approaching producers’ cost of pumping it out of existing wells, which his called the lifting price. The lifting cost is between $20 and $30 a barrel in Kansas, depending on the well.
Jim Williams, owner of WTRG Economics, an oil industry consultant, said it’s too early for most oil producers to pull out of Kansas.