Currently, Oklahoma has the distinction of having the largest share of total household earnings* coming directly from the oil and gas industry – an astounding 13.9% for all of 2014. In fact, Oklahoma now has the highest share ever posted by a state in the modern energy era, with Wyoming’s 13.5% share in 1982 ranking a close second.
Oklahoma’s crude oil producers are expected to experience a 38.1% drop in revenue from crude oil production in 2015. In dollar terms, this reflects a $4.35 billion swing from the record $11.4 billion in crude oil revenue produced in 2014. Our pic of the week illustrates both the amount and value of crude oil produced annually in Oklahoma since 1981.
The U.S. drilling rig count is now down 55% since September 2014. The decline has reached 60% in both Texas and North Dakota.
Our pic-of-the-week highlights changes in the latest data that suggest we may be getting much closer to a near-term bottom in the rig count. Most importantly, the overallÂ
Is the U.S. the only major crude producer with large production gains that are driving crude prices? The short answer is, yes. Since early 2009, more than half of the net gain in worldwide petroleum production is attributable solely to domestic U.S. gains. As our pic of the week shows, total worldwide petroleum production – which includes crude oil, liquids, condensate, and refined petroleum products – is up about 10 million barrels per day since early 2009. The U.S. accounts for nearly 6 million barrels of the gain.
Oil is trying hard to bottom near $50/barrel, but inventory build-ups keep getting in the way. Our pic-of-the-week shows weekly commercial crude oil inventories in the U.S. and they keep getting larger and larger. Crude in storage managed to post an all-time high of 425.6 million barrels last week. Not only does this extend the uptrend but it also represents a bounce well above the trend.