THE MINERAL INDUSTRY OF NEBRASKA 509 
 
REVIEW BY MINERAL COMMODITIES 
MINERAL FUELS 
 
 Natural Gas.—Because of depletion of the gas reservoirs, marketed
natural gas again declined—i 7 percent. The State Oil and Gas Conservation
Commission reported that dry gas production was 6 billion cubic feet; casing
head gas was 3.9 billion.5 Cheyenne County continued to lead the State in
output of natural gas with 66 percent of the total. Within the State, 37
dry gas wells were producing at yearend; 5 were shut in. 
 The American Petroleum Institute (API) and the American Gas Association
(AGA) listed proved reserves of natural gas of 63.8 billion cubic feet at
yearend 1967, a 9.0 billion (12-percent) decline from 1966. Extensions, revisions,
and additions by new fields in 1967 were much less than production.6 
 Kansas-Nebraska Natural Gas Co. conS structed 27 miles of 12—inch
and 20 miles of 8—inch gas pipeline. 
 
 Natural Gas Liquids.—Output of total natural gas liquids was virtually
unchange~i from 1966. Production of natural gasoline was down 15 percent;
however, the 5-percent increase in the larger quantity of LP gases tended
to balance the total. Cities Service Oil Co. purchased the Kimball gasoline
plant formerly operated by Antelope Gas Producers Co. 
 Annual reserve estimates by API and AGA gave the State natural gas liquids
reserves of 2.3 million barrels, an 8-percent decline.7 
 
 Petroleum.—Crude oil production continued to decline but at a much
slower rate than during the previous 4 years. Output was 3 percent below
that of 1966 because of the depletion of older reservoirs. Although development
drilling increased slightly from the 113 wells drilled in 1966, exploratory
drilling again declined sharply 
—from 176 to 107 wells. Wildcat wells accounted for 46 percent of the
drilling activity; the success ratio was 9.3 percent, somewhat less than
in the previous year. The actual number of discoveries reached a new low.

 The 10 discovery oil wells were small in terms of initial production potential.
Only one discovery well, in Surge field, had initial daily production of
more than 100 barrels; the well, Sundance Oil Co. 
Beranek No. 1, sec 22, T13N, R54W, Kimball County, was completed for 275
barrels per day from the "J" Sandstone formation (Cretaceous). Another discovery,
the Holein-Rock field, sec 6, T19N, R55W, Banner County, was completed, pumping
50 barrels of oil per day from the "J" Sandstone; however, the confirmation
well., a southeast offset, pumped 475 barrels per day. By yearend four other
wells bad been staked or begun in the field. 
 Kimball County continued to lead the State in petroleum production, in spite
of an 11—percent decrease in output. Of the five fields in the county,
only the Enders with an increase of 11,458 barrels to 493~494 barrels evidenced
a gain. 
 Red Willow County with an 80 percent increase in production, ranked second,
displacing Banner and Cheyenne Counties. The gain in Red Willow County production
resulted primarily from increased output in the Sleepy Hollow field, where
output more than doubled, from 952,904 to 1,993,796 barrels. This was the
result of a waterfiood program which was begun in October 1966 and which
reached full effectiveness in 1967. Notable gains also were reported for
the Red Willow County fields of Northwest Sleepy Hollow, Bed Canyon, Ackman,
and Silver Creek. 
 The Willson Ranch field, Banner County, which ranked second in production
in 1966, had a decline of 393,111 barrels to 304,361 barrels and dropped
to fifth place as a producing field in the State. 
 As of December 31, 1967, API and AGA estimated State crude oil reserves
of 632 million barrels, a gain of .6 million barrels. Additions because of
revisions and extensions amounted to 18.9 million barrels; new fields added
266,000 barrels.8 
 At yearend, the State reported that 1,430 oil wells were producing; 609
were shut in or temporarily abandoned.9 Four counties accounted for 87 percent
of the producing wells: Kimball was the leading 
 
 
 5 Nebraska Oil and Gas Conservation Commission, Sidney, Nebraska. Nebraska
Oil Acitivity Summary. 1967, 5 pp. 
 6 American Gas Association, Inc., American 
Petroleum Institute, and Canadian Petroleum 
Association. Reserves of Crude Oil, Nateral 
Gas Liquids, and Natural Gas in the United 
States and Canada as of Dec. 31, 1967. V. 2:2, 
May 1968, p. 125. 
 ~ Page 128 of work cited in footnote 6. 
 5 Pages 30—31 of work cited in footnote ~. 
 9 cited in footnote 5.