A Federal Reserve report launched this week signifies Oklahoma has ranked increased than different states in natural gas production, and that increased natural gas prices have boosted that production.
The Oklahoma City Branch of the Federal Reserve of Kansas City launched its newest subject of the quarterly publication the Oklahoma Economist, titled “High Natural Gas Prices: A Boost to Oklahoma Heating Bills and Drilling Activity.”
U.S. natural gas prices surged within the first half of 2022. In current months, prices have been unstable however nonetheless excessive relative to pre-pandemic ranges, in response to Chad Wilkerson, senior vp and department government on the Oklahoma City Branch of the Federal Reserve Bank of Kansas City.
“Oklahoma is a major consumer of natural gas, ranking fourth among states in 2021 in consumption per capita,” he stated. “As in many states, natural gas remains a primary residential and commercial heating fuel, and Oklahoma also generates a higher share of its electricity from natural gas than the nation.”
Wilkerson stated Oklahoma additionally ranked extremely in natural gas production throughout states in current a long time. In 2021, the state ranked fifth in complete production.
“The rise in natural gas prices in 2022 pushed prices well above profitable levels for most producers in the Tenth District,” he stated. “As might be expected, with higher fuel prices drilling for and production of natural gas also increased during 2022, although the increase was less than in the nation and prices have cooled recently.”
The full subject is obtainable at www.kansascityfed.org/oklahomacity/oklahoma-economist.
The Federal Reserve Bank of Kansas City serves the Tenth Federal Reserve District, encompassing the western third of Missouri; all of Kansas, Colorado, Nebraska, Oklahoma and Wyoming; and the northern half of New Mexico.
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