Wichita ? While drivers might see high gas prices as a bad thing, Kansans in the oil business say there are plenty of benefits for the state when oil prices spike.

In 2006, taxes on oil revenues pumped nearly $300 million into the state’s coffers. Jon Callen, president of the Kansas Independent Oil and Gas Association, said when oil producers – most of which are independent, locally owned companies – make money, they spend it in Kansas.

“It goes to retailers and care dealers and remodeling companies,” Callen said. “And to oil field service companies and land leases and royalties.”

Sunrise Oilfield Supply in Wichita, which had been selling about 10 pumping units per year for the past 20 years, sold 300 to Kansas operators in 2006.

“It’s absolutely phenomenal the growth we’ve seen,” said company owner Mike Reed.

Dozens of other companies across the state also are reaping the benefits of higher oil prices. And cities such as Wichita are getting a boost from increased sales for local firms and the creation of other businesses that deliver services to companies that explore, drill and transport oil and gas.

Pratt Well Service has started five new companies in the past two years to provide specialty services to drilling and production companies.

“Pratt Well Service is something I’ve lived day and night since the 1970s,” said Kenny Gates. “I never thought I’d see the kind of times we’re having now.

“Our biggest challenge is finding people. It’s not about finding qualified people. We don’t even have warm bodies.”

Dick Schremmer, owner of Wichita-based Bear Petroleum, said he also is facing an employee crunch at his business, which operates more than 400 wells in 21 counties in Kansas.

He said if he could find qualified workers, he could expand his business by nearly one-third.

“I’ve basically just worked with the people I’ve got,” he said. “We do what we can and turn the rest down.”

Another Wichita-based company, Log-Tech Inc., which has offices in Hays, Liberal and Pratt, also is thriving because of high oil prices.

The company analyzes geological logs that are collected as new wells are drilled and pinpoints places in the pipe where perforations should be made.

New technology has helped the company speed up its work, using satellite trucks to send information back to geologists within seconds.

“Technology has changed our business a lot,” said Sid Tomlinson, a log analyst. “It used to take days to get an analysis done. They had to mail in the information or we’d send somebody out to pick up a disk.”

The company is running 15 trucks, more than double the number of five years ago, he said.

“It may never again be like the ’50s and ’60s, but these are good times,” said Reed, of Sunrise Oilfield Supply. “Good for a lot of companies and good for Kansas.”