Newspaper article THE JOURNAL RECORD

Oklahoma's Oil Production Value Up 41.4%

Newspaper article THE JOURNAL RECORD

Oklahoma's Oil Production Value Up 41.4%

Article excerpt

The value of Oklahoma's oil production rose 41.4 percent in July from a year earlier as producers continue to benefit from record high energy prices.

Oklahoma producers received $295.4 million for oil produced in the state in July, up from $209 million a year earlier, according to a report released Thursday by the Oklahoma Independent Petroleum Association.

Oil producers have been receiving record high prices for production. The average prices for Oklahoma crude oil in July was $57.50 per barrel, up from $39.29 for July 2004, according to the OIPA.

ConocoPhillips, a major buyer of crude oil in Oklahoma, increased posted prices by $1.25 per barrel on Thursday, increasing the price paid for Central Oklahoma Sweet to $63 per barrel. ConocoPhillips was paying $46.75 for Central Oklahoma Sweet on Sept. 28, 2004.

Consumers have been paying record high gasoline prices because of supply shortages after the two recent hurricanes and growing global demand. The weighted average price for all three grades of gasoline was $2.84 per gallon on Sept. 23, according to the Lundberg Survey of 7,000 gas stations. Self-serve regular averaged $2.81 per gallon nationwide. Mid-grade was at $2.91, while premium-grade was at $3.01.

Many consumers and politicians have blamed the energy industry for turning higher gasoline prices into increased profits. The OIPA says that criticism is unfair.

Many well-run oil and gas production companies are doing well now, making them the target of criticism among those who do not understand the realities of the market, said Harold Hamm, an independent producer from Enid and chairman of the Oklahoma Independent Petroleum Association.

The Oklahoma Energy Production Stock Index has risen 50 percent in the last year, according to the association. The index is a composite of the monthly average stock prices of 10 public independent companies either based in or doing substantial business in Oklahoma.

The upward run of the stock index helped push the Oklahoma Energy Index to 177.9 in July, up from the June index of 176.7 and up from 157.1 for July 2004. The energy index was designed to measure the state's oil and gas production economy and is a joint project of the OIPA and the office of state Secretary of Energy David Fleischaker. …

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