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Oklahoma Gas Production Tops $1 Billion

Posted on: Monday, 28 November 2005, 15:00 CST

By David Page

The value of Oklahoma's natural gas production in September increased 112.4 percent from a year earlier and exceeded $1 billion for the first time.

The increase was mainly from higher natural gas prices after Hurricane Katrina cut production from the Gulf of Mexico and the Louisiana coastal area, according to the monthly Oklahoma Energy Index released on Tuesday.

Oklahoma's natural gas production in September was worth $1.36 billion, up from $639.7 million for September 2004 and a 38.5 percent increase from $980,957 for August, according to the index compiled by the Oklahoma Independent Petroleum Association and the office of David Fleischaker, state secretary of energy.

The average price of natural gas for the month was up 118.2 percent from September 2004 and was 40.2 percent higher than August, just a month earlier.

Oklahoma natural gas producers will take these prices because there is no choice in the matter, though the state's producers do not seek to profit from the misery imposed by a natural disaster on their fellow countrymen, said Harold Hamm, OIPA chairman. But in fact, producers are ultimately aiding those affected by natural gas prices by continuing to supply the marketplace with as much production as they can muster.

Oklahoma's natural gas production for the month was down 2.7 percent from a year earlier, according to the index.

The increase in prices and the value of natural gas produced in the state pushed the Oklahoma Energy Index for September to 182, up from 10.1 in August and 162.4 for September 2004. The index was created to measure of the state's oil and gas production economy.

The value of Oklahoma oil production for September totaled $289.3 million, up 30.2 percent from $222.3 million a year earlier.

Employment in Oklahoma energy sector has increased along with energy prices and drilling but the industry still needs workers.

Oklahoma's energy production employment in September totaled 32,500 workers, up 3.8 percent from 31,300 a year earlier, according to the index. Support employment for energy production in September totaled 16,200 workers, up 3.2 percent from 15,700 for September 2004.

The Oklahoma Independent Petroleum Association and the Oklahoma Energy Resources Board have formed the Oilfield Workers Initiative, designed to recruit new workers.

Oklahoma has witnessed an increase in drilling and leasing activity thanks to higher oil and natural gas prices, and that surge is expected to continue, said Susan Webb, special projects coordinator at the OIPA and head of the worker initiative. However, the demand for a trained work force has grown as well, and the lack of experienced workers in the oilfield is actually slowing efforts to meet the energy needs of the United States.

Many entry-level positions in the energy industry come with a starting salary of $32,000 to $45,000, she said. Experienced workers can expect an annual salary of more than $60,000.

Work is available in Oklahoma, Webb said. There are jobs here, and there are good jobs.

Free training for new oilfield workers is available at High Plains Technology Center in Woodward. The Oil and Gas Training Center is funded through the U.S. Department of Labor, which has designated the center as the official Mid-Continent site for oil and gas training

A new $2.4 million federal grant approved earlier this month will allow the training program to continue for an estimated two years. More than 2,500 workers have received training for jobs in the oil and gas industry since the program started in August 2003.

Source: Journal Record - Oklahoma City

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