News from the Oklahoma Corporation Commission

Jim Palmer, Director of Information

August 18, 2000

(OKLAHOMA CITY) – Thirty-seven of Oklahoma’s 77 counties showed increases in crude oil production from April to May. In some counties it was only a few barrels while in others it was thousands of barrels.

Overall the increase in crude was only 4.2% or about 222,000 barrels. Natural gas showed a decline statewide of 11.4% or approximately 12,656,000 mcf.

Both casinghead gas and condensate oil showed slight drops of -3.8% and –5.9% respectively.

Corporation Commissioner Denise Bode said "While both crude oil and natural gas prices are up from last year, we still haven’t overcome our infrastructure losses from the devastation of 1998’s low prices. Production is still off from previous years and the rig count, while consistently improving, is still not where it needs to be to replace the two years of lost production. I remain concerned about the level of gas production and what that means for gas consumers this winter."

Bob Anthony, Commission chairman, concurred. "The low prices of the past several years reduced the pool of experienced oilfield workers and left companies repaying accumulated debt. The industry is coming back, but it will take time to reverse the production declines. There are forecasts these lower production levels will translate into higher natural gas prices this winter. The Commission has undertaken several proactive initiatives through utility unbundling and competitive bidding requirements to help mitigate these higher prices for natural gas utility customers."

The average price of Oklahoma crude in May was $28.48 per barrel, up $3.28 from April, and more than twice the $13.38 price in May of last year. Oklahoma’s average natural gas price dropped $0.36 from an average $2.70 in April to $2.34 in May but remained well above the $1.71 price in May of 1999.

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