Oil Prices and Rig Counts Slide in Oklahoma While Permits to Drill are on the Increase

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Energy facts for consideration in Oklahoma.  The average price for oil in Oklahoma in June was $44.94. Two years ago, it was $101.29 a barrel, according to a monthly report issued by the Oklahoma Corporation Commission on oil and gas activity.

The nearly $45 average for June 2016 compares to $55.99 a barrel in June of 2015. Consider natural gas prices. In June of this year, the average was $2.51 while two years ago, it was $4.58 and a year ago, the average price was $2.78.

Charts from the Commission show that after hitting monthly lows in February and again in April, the number of intents to drill requests went from 91 to reach 157 on average in June. The June average is the highest so far this year.

But the average rig count continues to slump from a high of 86 in December of 2015 and in January of this year to a June average of 57.  A year ago, the June average was 106 and two years ago, it was 202.

As far as crude oil production in the U.S., Oklahoma is ranked 5th. Texas is the overwhelming largest producer followed by North Dakota, California, and Alaska. New Mexico and Colorado are close behind Oklahoma. However, the natural gas production in Oklahoma has the state ranked 3rd highest behind Texas and Pennsylvania.