News from the Oklahoma Corporation Commission

Jim Palmer, Director of Information

November 12, 1999

YOUR CORPORATION COMMISSION WORKS TO ENHANCE THE GAS RESOURCE BASE FOR OKLAHOMANS

Oklahoma is the third largest gas producing state but it only uses 30% of what it produces and it exports the remaining 70%. The other two major gas producing states, Texas and Louisiana, use all of the gas they produce because they have open access and an unbundled, competitive gas utility marketplace.

Oklahoma’s natural gas reserves and drilling activity are down. This is a direct result of historic low oil prices in ‘98 and early ‘99. Since most producers are both oil and gas producers, the crisis impacted exploration for gas in addition to oil.

Commissioner Ed Apple said "We must act to increase exploration and production of natural gas in Oklahoma. The Commission has acted to increase time for drilling permits to assist in the deeper gas wells being drilled here in Oklahoma. We also strongly encourage the Governor and the State Legislature to extend and expand the tax incentives for Oklahoma oil and gas production."

On the economic horizon, Oklahomans will see greatly increased demand for natural gas in the state. Commissioner Denise Bode points out that because Oklahoma’s natural gas resources are being underutilized in the state, the Commission undertook new gas rules last year. Those rules unbundle Oklahoma’s major gas utility services and open greater access to gas supplies and transmission while encouraging more access to gas at reasonable prices for Oklahomans.

Commissioner Bode stated "As a result of this action and the opening of the electric utility marketplace to competition, there are as many as 21 clean, gas-fired, combined cycle, electric power plants on the drawing board to utilize Oklahoma gas."