Posted on 10/09/2004 8:03:44 AM PDT by PhiKapMom
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Oklahoma oil tops $50 a barrel The Oklahoman Oil coming out of the ground in Oklahoma sold for $50 a barrel for the first time Friday, continuing a rapid run-up that has demolished previous price records. The recent price surge has led to increased gasoline and utility costs, but it also has sparked a boom in Oklahoma's oil patch as producers such as Melvin Moran embrace more expensive technologies in an effort to squeeze out additional oil from existing wells. "At today's prices, if you could increase production by just a barrel a day, you could generate a lot more money," said Moran, owner of Moran Oil Enterprises of Seminole. "It's worth it now to spend several thousand dollars to get more oil out of the ground. When prices were lower, we couldn't afford to give the wells the expensive treatments." Each oil field work-over project provides additional jobs for rural Oklahomans, Moran said. Oil prices have risen sharply over the past two months, largely because of continued violence in the Middle East, supply disruptions caused by Hurricane Ivan in the Gulf of Mexico and an oil workers' strike in Venezuela. Oklahoma Sweet crude soared 75 cents Friday to close at $50 a barrel. The Oklahoma price is up $3.75 in the past week. Before this year, the record high price for Oklahoma oil was $39 a barrel, set Oct. 9, 1990, during the first Gulf War. On the New York Mercantile Exchange, light crude for November delivery climbed 64 cents Friday to close at $53.31 a barrel. The price is up more than $3 in the past week. The higher prices have led to a revitalization in Oklahoma's oil patch, which has been overlooked in recent years as the state's energy producers switched their focus from oil to natural gas. While higher oil prices have hampered consumers at the pump and hurt heavily fuel-dependent industries such as trucking and airlines, energy-producing states such as Oklahoma have experienced some significant benefits from the higher prices. In fiscal year 2004, which ended in June, the state collected $116.4 million on oil gross production taxes alone, about $25 million more than expected. Most of the excess revenue was spent on common and higher education, state finance office spokesman Shawn Ashley said. At the same time, natural gas production taxes generated $444 million, about $87 million more than expected. The excess natural gas revenue was put in the state's general fund, Ashley said. Through July and August, the state collected nearly $21.9 million in oil production taxes and $82.9 million in natural gas production taxes. Those numbers do not include the current oil price run-up, which began in early September. Despite the climb, however, Oklahoma Independent Petroleum Association President Mickey Thompson said prices are not likely to continue climbing for long. "I think as it continues to go up, there's a little more feeling of stability not that the price will stay at $50, but that it might stay for a significant period of time above $30, which is a respectable range for most Oklahoma oil producers." |
"It's worth it now to spend several thousand dollars to get more oil out of the ground. When prices were lower, we couldn't afford to give the wells the expensive treatments."
The next time a liberal or anyone you know complains about the higher prices for gas, show them this article. With the higher prices per barrel, domestic oil producers are now able to produce more domestic oil and in return less relying on foreign sources. It also means that more is flowing back into our economy by oil producers hiring more people, buying more equipment, and less money going to foreign sources.
Time to open ANWR to drilling and depend even less on foreign sources for oil. Reelect the President and give him a large enough majority in the House and Senate so we can explore more oil in this Country and depend less on the Middle East. He has a "blueprint" for energy for this Country and it is time for the House and Senate to approve that "blueprint!"
ha!! You be me to it, but it's worth repeating !Drill ANWR !!
Great! We have a contract here--just waiting for them to decide whether or not they'll drill. (Of course, I hope it won't disturb the tick and chigger population--not to mention the squirrel hunting grounds!)
Inevitably this will drive prices down as supply increases, but I don't see the activity level dropping anytime soon. Perhaps when oil drops below $30 a barrel, but not before then.
Oh, yeah .....
OK deserves all the good news it can get! What a great state! The oil is flowing and President Bush is ahead 2 to 1. Thanks for the good news!
Exellent for domestic oil. Catastrophic for domestic drivers.
Last year, all the repub & dem politicians could talk about was how badly alaska needed state sales, income, and property taxes. Meek as church mice now about the issue; so the money must be really rolling in.
Guess i'd much rather pay 350/gal for gas than 10,000 in increased taxes.
We have more in our on ground at these prices than we need to import.
But we're up against longterm corrupt contracts with infinite kickbacks & discount schemes(the oil for food criminals didn't invent them all).
Our government subsidizes the peanut farmer but not the oil industry. Which employees more and is more vital to our national security?
It's $2.40 here for ultra high-test ethyl. $2 for regular. They said it is $5 in the villages depending on remoteness and as much as $7 in fly-in villages. The villages might be inconvenienced if gasoline is cut off by excessive price or lack of supply, but Fairbanks would be out of business. We're not there yet; Fairbanks could pay $5 without disenfranchising more than a few citizens.
Catastrophic? Ha..!!
Earthquakes, tornadoes, hurricanes, floods, exploding mountains can be catastrophic....$2.00 per gal. gasoline...is hardly catastrophic.
FWIW-
Thought this was the best article I have seen about domestic oil production and how the higher price per barrell is helping out domestically.
Barring major new discoveries, I don't think oil will ever drop below $30 again. Worldwide demand is growing too strongly for that. Oil will hit $60 within two years despite everyone's best efforts to produce more.
The left has no imagination -- they are only against everything:
Nuclear power. Nope, can't have that -- it's radioactive.
Solar power. Nope, can't use that -- solar panels in the desert create too much heat.
Wind power. No way -- windmills are ugly and they kill birds.
You know, if they ever develop fusion to where it is practical, the left will say that the universe is running out of hydrogen!
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