Kansas Governor Kathleen Sebelius

August 21, 2006

Sebelius calls for balanced approach to energy
Governor speaks to independent Kansas oil and gas producers

WICHITA – High prices for gasoline and natural gas show the need for increased domestic production, which is why we need to grow Kansas’ local oil and gas industry, Governor Kathleen Sebelius said today.

In addition to the security benefits, increasing production in Kansas will create jobs Sebelius told the annual convention of the Kansas Independent Oil & Gas Association. She said America needed a balanced approach to energy that encourages domestic production, conservation and renewable fuels.

“None of these elements alone will be enough to satisfy our nation’s energy needs or help us break our nation’s reliance on foreign fuels, which is why we need a balanced approach to energy that promotes conservation, renewable fuels and domestic production,” she said.

The growth in Kansas’ ethanol industry is already creating jobs, Sebelius said, and there’s room for growth in Kansas’ oil and gas industry as well.

While Kansas it not commonly thought of as an oil-producing state, it’s ranked 8th overall in petroleum production within the United States. Much of that production is in Western Kansas, which is good news for small communities.

“The oil and gas industry benefits Kansas by providing good jobs, particularly in rural areas. In fact, nine of the top 10 oil producing counties and all 10 of the top gas producing counties in Kansas are west of Highway 81,” said Sebelius.

Independent producers are ramping up production in response to increased demand, which means many are hiring new employees. To help alleviate a shortage of trained workers, the Kansas Department of Commerce partnered with KIOGA and local higher education institutions to create a program to train workers for careers in the oil and gas industry.

Additionally, because part of the reason for the recent high prices is a lack of refining capacity, Kansas took action this year to promote the construction of new refineries in the state. This is important, Sebelius said, as we seek to promote energy independence for the United States.

“We’ve made great progress in the past few years in growing the Kansas economy and creating jobs. But to continue that progress, we need a sensible, balanced energy policy that recognizes the new world we’re in and the fact that it’s dangerous for our nation to have its fate in the hands of foreign oil producers,” Sebelius said.

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