Newspaper article THE JOURNAL RECORD

General Business Indexes Down 3rd Straight Month / for State, Okc, Tulsa

Newspaper article THE JOURNAL RECORD

General Business Indexes Down 3rd Straight Month / for State, Okc, Tulsa

Article excerpt

True to projections, the General Business Indexes continued to decline for the third straight month during April in Oklahoma City, the state of Oklahoma and Tulsa.

Beyond that, more declines are expected, said Craig Knutson, economist for Southwestern Bell Telephone, which co-sponsors the index reports with the University of Oklahoma.

While there were a few positive indicators, such as home refinancing and increased personal income, Knutson said the effect of declining oil prices was so extensive it points to further declines.

"Not only was there a decline in coincident indicators in energy, such as the rig count and state income from gross production taxes," said Knutson, "but there were also declines in leading indicators, such as seismograph counts and intents to drill."

That means a shutdown in activity toward future drilling as well as in current drilling and in the production of oil and gas, Knutson said.

The incentive to drill has all but been eliminated, he said.

The three April indexes were all down from March, down from April 1985 and down from April 1984:

- The statewide Oklahoma Index fell to 908.6 in April, down 1.2 percent from 919.8 in March, down 2.9 percent from 935.9 in April 1985 and down 3.8 percent from 944 two years ago.

- The Oklahoma City Index slipped to 858, down 0.3 percent from 860.8 in March, down 6.2 percent from 914.9 a year ago and down 7.4 percent from 927 two years ago.

- The Tulsa Index was 871 in April, down 2.6 percent from 894.2 in March, down 6.1 percent from 927.1 in April and down 5.8 percent from 924.8 in April 1984.

The decline in state gross production taxes confirms the theory that low prices would shut-in some stripper wells in Oklahoma, which include more than 82,000 of the 100,300 wells in Oklahoma. …

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