The ongoing drop in the number of drilling rigs searching for crude oil now exceeds the collapse in natural gas rigs suffered back in the 2008-2009 period. Our pic of the week illustrates the similarity in size and pace between the respective oil and gas drilling collapses. Crude rigs are off
Mark Snead discusses oil prices and RegionTrack's outlook for the Oklahoma economy in 2015 on a recent airing of Oklahoma Horizons.
Just how big is the current oil boom relative to 1982? In short, not far behind for most of the energy states. Our last pic-of-the-week showed the share of total state earnings derived directly from the oil and gas sector. Requests quickly came in for a comparison of current conditions to those of 1982. This week’s pic answers that question. For each of the energy states,
Weak Gasoline Sales Weighing on Retail Activity but Aiding Consumers. Retail sales at gasoline stations have remained stuck in a holding pattern since early 2011 at about $45 billion per month. Strong domestic crude production coupled with only a modest rebound in vehicle miles driven continue to put steady downward pressure on gasoline prices, and, subsequently, total purchases. Measured as a share of all retail sales, gasoline station sales have declined steadily from just below 12% in early 2011 to only about a 10% share currently.
Has the Shift From Coal to Natural Gas in Electricity Production Stalled? Just ten years ago, coal was used to generate 50% of U.S. electricity while natural gas held only an 18% share. Toss in the shale gas revolution and move forward to early 2012 and you have both coal and natural gas producing 32% of U.S. power each. It appeared natural gas was well on its way to replacing much of the coal-fired production in the U.S.
However, our pic-of-the-week illustrates that since early 2012 the shift has taken a clear short-term breather. Coal has made a small comeback and is now closer to 40% of total production. Natural gas has eased back a bit to just under a 30% share. Is the shift from coal to natural gas over?