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." |
In the end it is good for all -- more domestic oil production and hopefully some more refineries will lower the price eventually as we are not so dependent on foreign sources.
Sure is improving the employment picture in oil producing states.
That is fantastic! We have plenty of natural gas here in Oklahoma as well.
Does make you wonder -- fund farmers but not oil producers.
YES.
Drill ANWWR!
I am still THRILLED from last night.
Did you see where BUSH has crossed the 50% mark in Rasmussen daily tracking poll?
How much are you all paying -- I paid $1.68 for regular yesterday. Price per gallon is cheaper than a gallon of milk and has been so low for years that oil production has suffered in this Country.
Very good points! The left has no imagination! Here in OK they are doing windmill farms for our electricity. Should work as we definitely have a lot of wind here in OK.
I saw that! Absolutely fantastic! Maybe the energy blueprint will finally be totally enacted after the first of the year. All of the oil/gas producing states are going to start adding to the economy.
Farmers are in a much better position to extort money than oil producers, plus they have a much better perception with the public, which is just as true in other countries.
Thanks for the bump!
Yes, and that poll was taken PRIOR to the debate!
OK's economic news is fantastic.
Very happy for y'all.
Now, on to Alaska. :)
Love your use of the word "extort!" What gets me is the media/libs consider oil producers to be evil but then complain when the price of gasolines goes up!
I'd agree with that except for one thing. The Chinese economic boom is largely responsible for the increased demand in oil. They really haven't hit their first recession yet but it's inevitable. When they do, the demand for oil will drop sharply and so will prices. Will prices drop below $30? I don't know.
And I wouldn't mind paying $3 per gallon of gas if we weren't dependent on Mid-East oil and we were using our own oil while developing alternative fuels and technology. But this has to be market driven to work. All people like Kerry would do is to raise taxes on gas to punish consumers, restrict domestic oil production and regulate most alternative technologies out of existence, and then waste the tax dollars on welfare and new bureauocracies that would "solve" the oil problem by making regulations that would lower everyone's standard of living.
Personally think oil wells are a beautiful site. Wells are pumping now that I haven't seen pump since we moved here in January '97, new wells are being drilled, and would say that employment is going up in the oil industry here big time!
"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."
This Californian remembers the early days of eco-movement and how the left lusted for wind and sun power.
Up north, east of Pleasanton there are wind farms, which I personally don't find unsightly. Out near Palm Springs, and across the deserts there are more.
Similarly there are farms of solar panels, northhwest of Barstow.
Oil at $50 or $60 per barrel should bring out some technology and hopefully some long term investment.
As a matter of FACT the US automakers have zero of their own technology in the emerging hybrid cars and trucks.
Ford is introducing Escape small SUVs with licensed Toyota technology.
European makers are BIG on (tdi) intercooled-turbocharged-diesel fuel (better overall efficiency than gas). Diesel ist verbotten hier in Kalifornia; one of five states with no new vehicle sales for diesel.
I've already begun scaling down size-weight of my vehicle fleet, anticipating higher permanent gasoline prices.
People will tolerate an oil shortage more than a food shortage. Plus farmers can always blame the weather, and there is the perception that they are all hard workers. If everyone was to trace back their family tree, there will be a farmer in there somewhere. Most people have done some gardening and they know things don't always go well. Whereas oil producers are all perceived as JR Ewing.
Roger That ~ Drill in ANWR ~ Now!
And $2.03 or so for Premium
My Grandfather was a farmer, along with my Uncle and various relatives to this day. My Grandfather became a stanch Republican because of FDR and his farm program. My Grandfather's farm is still in the Family and now his great grandson is farming. Know all about farm subsidies! :)
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