News from the Oklahoma Corporation Commission
Phone: (405) 521-4180, FAX: (405) 522-1623, m.skinner@occemail.com
Commissioners hail new
numbers showing Oklahoma moving up in natural gas production rankings
Calling it “good news” for both Oklahoma’s energy industry and
Oklahomans in general, Oklahoma’s Corporation Commissioners have announced that
Oklahoma is now the second largest natural gas producer among all the states.
According to numbers compiled by the Corporation Commission and the Energy
Information Administration, Oklahoma finished calendar year 2003 one spot
behind perennial front-runner Texas, with New Mexico slipping to the number
three spot previously occupied by Oklahoma.
Commission Chairman Denise Bode says the increase is the result of “a
combination of factors.”
“The most significant factor in Oklahoma moving up in national
importance in energy production is the grit demonstrated by Oklahoma’s
producers in hanging on through the tough times of the last 2 decades, when the
failure of the Federal government to put in place a national energy policy, and
‘dumping’ by the OPEC nations, made it almost impossible for Oklahoma’s oil and
gas producers to make any kind of profit,” said Bode. “But what sustained them
was the fact Oklahoma made it a priority to keep our oil and gas resource base
strong through removal of tax penalties and more efficient oversight by the
Corporation Commission.
“The Commission began revamping its processes to reduce red tape and
speed the processing of drilling applications, poolings, and other items that
are part of the regulation of the oil and gas industry,” added Bode. “The result
has been a system that has allowed producers to get on with their important
work without undue burden, while at the same time allowing the Commission to
meet its constitutional obligation to properly regulate the industry and
protect the environment.”
(more)
(Ranking, pg 2.)
Commission Vice-Chair Bob Anthony, a member of the Natural Gas Committee
of the National Association of Regulatory Utility Commissioners (NARUC), says
the numbers show just how important Oklahoma is when it comes to meeting the
nation’s critical need for natural gas.
“The demand for natural gas continues to grow,” said Anthony. “While it
was once viewed only as a fuel for heating, it is now used in various
industrial production processes, as well as to fuel electric generating
facilities all over the country. Because it ‘burns clean,’ it goes a long way
toward helping areas meet stringent clean air laws.
“Many of those cities are in areas that never give a thought to the
tremendous amount of work involved here in Oklahoma and in other producing
states in getting that natural gas to them. Oklahoma’s oil and gas producers
have always played a vital role in America’s economy, and these numbers show
that isn’t going to change any time soon.”
Commissioner Jeff Cloud says what’s good news for Oklahoma’s energy
industry is good news for all Oklahomans, as “we are all in the energy business
in Oklahoma.”
“The positive impact of what some call ‘the comeback’ of the domestic
producer isn’t just in jobs at the well-head or drilling platform,” asserted
Cloud. “It benefits the entire state, as revenue from the operations finds its
way into both the private and public sectors.
According to the Office of State Finance, Oklahoma natural gas production
generated about $444 million in production taxes in the last fiscal year, and
almost $90 million in the first two months of this fiscal year. This is money
that finds its way into the classroom, into the justice system, into roads and
into other vital government services.”
In calendar year 2003, Oklahoma had marketed natural gas production of
about 1.67 tcf (trillion cubic feet), an increase of about 120 billion cubic
feet from 2002. In rankings, Texas was the number one natural gas producer
(about 5.28 tcf) followed by Oklahoma, New Mexico (about 1.55 tcf), Wyoming
(about 1.50 tcf) and Louisiana (about 1.37 tcf).
-OCC-
All OCC advisories and releases are available at www.occ.state.ok.us