Oklahoma’s oil and natural gas industry continues to expand according to the most recent Oklahoma Energy Index (OEI).
The energy index is a comprehensive measure of the state’s oil and gas production economy established to track industry growth rates and cycles in one of the country’s most active and vibrant energy producing states. The OEI is a joint project of the Oklahoma Independent Petroleum Association (OIPA), Bank SNB and the Steven C. Agee Economic Research and Policy Institute.
“Based on the index’s January numbers, it appears industry activity has continued its momentum from 2013,” said Chris Mostek, Vice President of Energy Lending at Bank SNB. “We continue to see customers in the industry identify and evaluate new opportunities within Oklahoma, which echoes that optimism. So far, it appears to be a promising start to 2014.”
The index of industry activity increased slightly using data collected in January to 269.19, a 0.64 percent increase from the previous month. Year-over-year growth, however, has increased by 2.36 percent.
Dr. Russell Evans, executive director of the Steven C. Agee Economic Research and Policy Institute, pointed out the energy index has trended toward expansion in five of the last six months, a sign of economic strength as we move into 2014.
“As the state’s single most defining industry, movements in oil and gas activity are a precursor to changes in the state’s economic climate,” Evans said.
Contributing to the index gains were increased natural gas prices, an increased number of rigs actively exploring for oil and natural gas in Oklahoma and a strong showing from the publicly traded companies tracked in the index’s OK Energy Portfolio.
“Oklahoma’s economy benefits from a growing and vibrant oil and natural gas industry,” OIPA President Mike Terry said. “Cooler temperatures across the country have pushed natural gas prices to five-year highs. Oklahoma is a leading producer of natural gas, and increases in its value benefit the state tremendously.”
Terry pointed out that Oklahoma is the fourth-largest producer of natural gas in the nation and trails only Texas, Louisiana and Wyoming in proven natural gas reserves.
“Oklahoma is a natural gas state,” Terry said. “Increased natural gas prices encourage new development and new production. That leads to new jobs, increased tax collections for the state and, most importantly, a healthy Oklahoma economy.”
