Index Shows Energy Industry’s Continued Expansion

Oklahoma’s oil and natural gas industry continues to expand, data from the most recent Oklahoma Energy Index (OEI) shows.

For the first time since December 2013, all energy index variables trended in a positive direction, with significant gains in industry employment, rig counts and the Oklahoma energy portfolio.
“With all index variables increasing, June was a strong month for the Oklahoma energy industry,” said Chris Mostek, Vice President of Energy Lending for Bank SNB. “The growth in employment and drilling activity reinforces Oklahoma’s substantial contribution to not only the energy industry’s progress but also the strengthening of our economy.”

The energy index is a comprehensive measure of the state’s oil and 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.

The index of oil and natural gas industry activity expanded to 262.74 using data collected in June, a 2.4 percent increase from the previous month. Year-over-year growth increased by 5.9 percent.

Oil and gas employment grew at a 2.6 percent rate in June, adding approximately 1,500 jobs. The job gains bring industry employment nearly to its June 2013 high of 60,300 jobs.  Dr. Russell Evans, executive director of the Steven C. Agee Economic Research and Policy Institute, pointed out energy employment accounts for more than 20 percent of all job gains since the state’s 2010 low in private sector employment.

Drilling activity also expanded in June, with the state averaging more the 200 active rigs per week. The Oklahoma Energy Portfolio, a stock portfolio index of Oklahoma energy companies, continues its climb, outpacing even a record-setting stock market.

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