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EIA revises Oklahoma oil production higher

State still feeling the impact of lower crude oil prices.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |   Feb. 12, 2016 at 9:01 AM
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WASHINGTON, Feb. 12 (UPI) -- A revised survey from the U.S. Energy Information Administration raised the estimated daily oil production from Oklahoma by 100,000 barrels.

The EIA said it revisited reported production figures from 2014-15 with energy companies working in the state and revised how it calculated data after a review with Oklahoma state officials, vendors and operators.

"The new estimates are roughly 100,000 barrels per day more than those generated by the previous EIA methodology," it said in a daily briefing.

Oklahoma is one of the top 5 oil production states in the nation, accounting for an average of between 3 percent and 4 percent of the total output in the United States. EIA's most recent data set show Oklahoma holds about 1.2 million barrels of oil.

The state nevertheless is feeling the pressure from declining crude oil prices. Oil services company Baker Hughes, which provides key metrics for the industry, reported Oklahoma shed 8 rigs to record 80 in service for the week ending Feb. 8, a 9 percent decline from the previous week.

When U.S. crude oil prices soared above $110 per barrel two years ago, Oklahoma had one of the fastest growing economies in the country. With oil below $30 per barrel, the state has a $1 billion budget gap.

In her annual State of the State address last week, Oklahoma Gov. Mary Fallin said state agencies may be facing budget cuts of at least 10 percent in part because of the pressure from lower oil prices. The steep drop in crude oil prices, she said, has "a tremendous impact on our revenue."

A state report from January said declines in the mining and extractive industries, which includes oil and gas, subtracted more than two percentage points from real gross domestic product growth in Oklahoma.

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