Energy Index Growth Continues
The Oklahoma Energy Index continues to show signs of oil and natural gas industry growth, with increased rig activity and the employment associated with it driving the most recent index upward.
Primary wage and salary oil and gas employment gained 300 jobs in January from the December low as producers increased drilling budgets for the year ahead and rig activity in the state continues to climb accordingly. Modest employment gains are expected to continue through 2017 with year-over-year measures turning positive by mid-summer.
“Modest improvements in employment and pricing continue to help strengthen the industry,” said Chris Mostek, senior vice president of energy lending for Bank SNB. “It’s important to remain financially disciplined given the crude oil inventory levels and rig count increases. The margin for error isn’t great yet.”
The Energy Index stood at 163.0 using data collected in January, a 3.5 percent increase from the previous month’s reading of 157.5.
“Industry recovery appears to be, for now, on stable footing,” said Dr. Russell Evans, executive director of the Steven C. Agee Economic Research and Policy Institute. “Industry activity is up 9.5 percent from the low established in the spring of 2016 and continues to move into a recovery.”
The Energy Index is a comprehensive measure of the state’s oil and natural gas production economy established to track industry growth rates and cycles in one of the country’s most active and vibrant energy-producing states. The OEI is a joint project of the Oklahoma Independent Petroleum Association (OIPA), Bank SNB and the Steven C. Agee Economic Research and Policy Institute.
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