News from the Oklahoma Corporation
Commission
Phone: (405)
521-4180, FAX: (405) 522-1623, m.skinner@occmail.occ.state.ok.us
CONCERNS OVER NATURAL GAS SUPPLY CENTRAL TO COMMISSION ORDER
(Oklahoma City) As warnings are
sounded regarding the cost and supply of natural gas for the upcoming winter,
the Oklahoma Corporation Commission today approved an order giving those with
unallocated gas wells in Oklahoma the green light to produce as much product as
possible.
Corporation Commission Chairman Denise
Bode said today’s order helps ensure stability for Oklahoma’s natural gas
producers, as it continues the gas allocation at the current allowable rate.
“Among the many problems plaguing the
domestic energy industry is volatility,” said Bode. “Investors interested in
placing badly needed-dollars into energy exploration and production in Oklahoma
need to know the rules of the game aren’t going to change suddenly.”
Vice-Chair Bob Anthony reminded consumers that “forewarned is
forearmed.”
“There is no doubt natural gas prices
this winter are going to be higher,” said Anthony. “Oklahomans need to prepare
now for the coming heating season, both in their budgeting and in taking steps
that can reduce gas consumption, such as insulating their home.”
Commissioner Jeff Cloud stressed that
while all the problems surrounding the domestic natural gas supply should be a
cause of concern, Oklahoma consumers shouldn’t panic.
"While the tightening market
conditions will undoubtedly be reflected in higher energy prices this winter,
all indications are that our state utilities will have an adequate supply of
natural gas to serve their customers during the upcoming heating season,"
said Cloud.
Oklahomans can check the latest
prediction for natural gas prices and their utility bills by going to the
Commission’s Oklahoma Energy Outlook web page (www.occ.state.ok.us).
Specifically, the Commission proration
order allows unallocated gas wells in Oklahoma to continue to produce the
greater of 65 percent of calculated absolute open flow (CAOF) or 2 million
cubic feet per day.
In practical terms, those numbers are the
maximum amount the best well can produce in Oklahoma. The order applies to the
fourth quarter of this year and the first quarter of 2004.
-occ-
All
OCC news releases and advisories are available at www.occ.state.ok.us