Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Oklahoma poised to become top oil producer, Continental Resources CEO Harold Hamm says
newsok ^ | June 5, 2014 | Jay F. Marks

Posted on 06/15/2014 9:04:06 PM PDT by ckilmer

Oklahoma poised to become top oil producer, Continental Resources CEO Harold Hamm says

Surging crude production in Oklahoma has the state on the verge of becoming the nation’s third-largest source of oil, according to officials at Continental Resources Inc.
by Jay F. Marks Modified: June 6, 2014 at 10:00 pm •  Published: June 5, 2014
 

Oklahoma is poised to cash in from the ongoing U.S. oil boom, according to one of the nation’s foremost experts on the topic.

Continental Resources Inc. CEO Harold Hamm said tax incentives meant to encourage horizontal drilling have done their job, as Oklahoma’s oil production is steadily increasing.

Photo -

Oklahoma produced 388,000 barrels of oil a day in March, marking its highest output in 25 years, according to the U.S. Energy Information Administration

That is up 17 percent over March of last year, 49 percent over March 2012 and 80 percent over March 2010.

“That’s the whole horizontal drilling story right there,” said Warren Henry, Continental’s vice president of research and policy.

Hamm said it took some time for drillers to learn the best techniques for horizontal drilling in Oklahoma, but they now are applying those methods in more than a dozen different resources plays around the state. He estimated that many more remain to be explored.

He said he is pleased state lawmakers adopted a gross production tax proposal little changed from the plan put forth by Hamm and two other Oklahoma City energy leaders, Devon Energy Corp. Executive Chairman Larry Nichols and Chesapeake Energy Corp. CEO Doug Lawler.

They suggested a 2 percent tax on the first 48 months of production from all wells drilled in Oklahoma, while opponents wanted a return to 7 percent. The Legislature approved and Gov. Mary Fallin last week signed into law a rate of 2 percent for the first 36 months of production. It will go into effect next summer, replacing an expiring incentive program.

The state historically has assessed a 7 percent gross production tax, but lawmakers created an incentive for horizontal drilling in 1994. The incentive initially lowered the tax rate to 1 percent for the first two years or until costs were recovered. It was extended to up to four years in 2002.

“It worked out like everybody hoped,” Hamm said. “We’re drilling very expensive wells, but overall we’re seeing a nice increase in production for Oklahoma.”

He said the new tax program will not hinder Oklahoma’s participation in the nation’s ongoing “oil and gas renaissance.”

Oklahoma currently is the nation’s No. 5 oil producer, according to Energy Information Administration numbers, but Continental officials predict the state could leapfrog California and Alaska in the next year of so. That would leave it behind only oil titans Texas and North Dakota.

“We’re so lucky that Oklahoma is an oil and gas state,” Hamm said, a day after state officials announced tax collections on oil and natural gas production in May rose almost 28 percent over last year.

He said producers are finding oil in plays that are spread across Oklahoma.

“It’s not just one play like the Bakken (Shale in North Dakota),” Hamm said.

Oklahoma is nearing production of 400,000 barrels of oil a day, a threshhold not seen since June 1986.


TOPICS: Business/Economy; US: Oklahoma
KEYWORDS: energy; oil; oklahoma; woodford
Navigation: use the links below to view more comments.
first 1-2021-40 next last

1 posted on 06/15/2014 9:04:07 PM PDT by ckilmer
[ Post Reply | Private Reply | View Replies]

To: ckilmer

Lets hope Senator Shannon can keep the EPA off their backs :D


2 posted on 06/15/2014 9:06:15 PM PDT by Viennacon
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney; bestintxas; Kennard; nuke rocketeer; crusty old prospector; SunkenCiv

Hamm thinks Okalahoma oil production could pass California and Alaska later next year.


3 posted on 06/15/2014 9:07:06 PM PDT by ckilmer (q)
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney; bestintxas; Kennard; nuke rocketeer; crusty old prospector; SunkenCiv

Oklahoma is producing over 300k oil while Alaska and California are producing over 500k oil.

Looks like Oklahoma production is accelerating.


4 posted on 06/15/2014 9:13:31 PM PDT by ckilmer (q)
[ Post Reply | Private Reply | To 3 | View Replies]

To: ckilmer

Obama is tearing his Gold Medal Flour grey hair out hearing about the coming oil boom. His fear is that he will run out of time to ruin this nation by 2017.


5 posted on 06/15/2014 9:20:36 PM PDT by lee martell
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

Oklahoma is OK :-)


6 posted on 06/15/2014 9:40:43 PM PDT by Bobalu (What cannot be programmed cannot be physics)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer
But all the libweenies scoffed at the notion that we could produce more oil. They said it was a finite source of energy and we needed to find alternative energy sources pronto. Peak oil they shrieked!
7 posted on 06/15/2014 9:52:02 PM PDT by princeofdarkness (The GOP is the present version of 1940 France and it will only get worse.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

“Oklahoma poised to become top oil producer, Continental Resources CEO Harold Hamm says”

I didn’t see anything in the article that said that. Maybe leapfrogging to number three, but not “top oil producer”


8 posted on 06/15/2014 9:55:08 PM PDT by Figment
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

Well, I’m glad to be an Okie ... :-) ...


9 posted on 06/15/2014 10:04:39 PM PDT by Star Traveler (Remember to keep the Messiah of Israel in the One-World Government that we look forward to coming)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer

It would be nice if all this new oil production would translate into low gas prices, here in AMERICA.


10 posted on 06/15/2014 11:15:45 PM PDT by PoloSec ( Believe the Gospel: how that Christ died for our sins, was buried and rose again)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ckilmer; All

Putin look out, we don’t need your oil.


11 posted on 06/15/2014 11:24:15 PM PDT by gleeaikin
[ Post Reply | Private Reply | To 4 | View Replies]

To: All

Well, with California and Alaska oil output in sharp decline, the bar is easier to get over.

More important, why do this? Why not run up import totals to the stratosphere and save domestic reserves for a time after we burn up everyone else’s?


12 posted on 06/15/2014 11:25:08 PM PDT by Owen
[ Post Reply | Private Reply | To 10 | View Replies]

To: gleeaikin

Oddly, I think the last numbers are something like 7 million bpd imported — and 400K of that is indeed Russian.


13 posted on 06/15/2014 11:26:48 PM PDT by Owen
[ Post Reply | Private Reply | To 11 | View Replies]

To: Owen

Oklahoma is only poised, it hasn’t gotten there yet Putin!


14 posted on 06/15/2014 11:54:11 PM PDT by gleeaikin
[ Post Reply | Private Reply | To 13 | View Replies]

To: Viennacon

Nice work - good to see ADULTS run some of our states.


15 posted on 06/16/2014 3:02:50 AM PDT by BobL
[ Post Reply | Private Reply | To 2 | View Replies]

To: ckilmer

California shall soon fall into the dustbin of Socialist history.


16 posted on 06/16/2014 4:16:18 AM PDT by norwaypinesavage (The Stone Age didn’t end because we ran out of stones)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Figment

I assumed the article “a” in front of “top oil” rather than “the”. It made sense that way.

Headlines are often misleading. They don’t really convey information, just an attempt to grap the reader and drag them in.


17 posted on 06/16/2014 4:35:31 AM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 8 | View Replies]

To: Owen
with California and Alaska oil output in sharp decline

California has already seen a slight increase in their oil production rate. They are not longer declining.

And I would hardly call Alaska's a sharp decline. The past 12 months are less than 1% down from the previous 12 months. Image and video hosting by TinyPic

Image and video hosting by TinyPic

18 posted on 06/16/2014 4:44:05 AM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 12 | View Replies]

To: ckilmer

Without any major contribution from the Monterey, I think Oklahoma will pass California in a couple years. Probably Alaska as well without any significant drilling up there.


19 posted on 06/16/2014 6:12:05 AM PDT by crusty old prospector
[ Post Reply | Private Reply | To 4 | View Replies]

To: crusty old prospector

Without any major contribution from the Monterey, I think Oklahoma will pass California in a couple years. Probably Alaska as well without any significant drilling up there.
............
The interesting thing is how fast its happening. Looks like Oklahoma oil production will go up this year and next by nearly 100k barrels@ day.


20 posted on 06/16/2014 10:51:08 AM PDT by ckilmer (q)
[ Post Reply | Private Reply | To 19 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-40 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson