Oklahoma Energy Index Hits a Record High of 237.6

By Jerry Shottenkirk

Record crude oil prices and rising natural gas prices have propelled the Oklahoma Energy Index to its highest level.

The Oklahoma Energy Index, which is compiled by economist Karr Ingham, measures the state’s oil and production economy.

The most recent Energy Index, which was taken at the end of January, increased by nearly three points to 237.6, up from 234.9 in December. It was about 9 percent above the 218.5 index from January 2007.

The index, which is commissioned by the Oklahoma Independent Petroleum Association and the office of state Secretary of Energy David Fleischaker, indicated the monthly average for oil for January was $86.50 per barrel, 68.6 percent above the $51.29 average in January 2007.

The monthly average for natural gas was $6.87 per thousand cubic feet, up 24 percent from $5.54.

OIPA Chairman John Pilkington of Tulsa said he expects more growth due to the prices.

“Increased prices mean increased earnings, and increased earnings give companies more capital to create jobs and produce the energy our state and country desperately need,” Pilkington said in a release.

Higher energy prices have caused an increase in the state’s rig count. According to Baker Hughes figures, the January count in Oklahoma was 192, up from 175 a year ago.

While the value of oil was up, the actual production was slightly down. Over 4.9 million barrels were secured, down from 5.2 million barrels a year ago. But because of the price, the production value of $432 million was up 61.6 percent from $267 million.

The volume of natural gas was up slightly at 142.5 million cubic feet, or 0.9 percent above the previous year, but the value was $978.9 million, up 25.1 percent.

Employment numbers continued to grow. In January the industry employed 48,200 workers, up 7.6 percent over 44,800 a year ago.

The Oklahoma Energy Production Stock Index, which measures the value of energy related stocks, was up 11.4 percent. The stock index was 799.3, compared to 717.7 last year.

Originally published by Jerry Shottenkirk.

(c) 2008 Journal Record – Oklahoma City. Provided by ProQuest Information and Learning. All rights Reserved.