Oklahoma Energy sector in for big changes in 2015 | eaglefordtexas.com – Joel Dean

Energy projections for 2015 are disparaging for many statewide, but encouraging at the pumps and wind farms. Wind energy in Oklahoma is expected to grow by nearly two-thirds next year according to the U.S. Energy Information Administration. Currently, wind farms comprise about 15 percent of all power in the state. This increase could fundamentally change the energy sector in Oklahoma, and the change would be coming at an already turbulent time for energy in the state. The Stephen C. Agee Economic Research and Policy Institute reports the current and projected oil prices will be causing challenges to the energy sector for most of early 2015.“Oil prices have found a temporary floor at $55, but could likely trade lower before market forces and production cuts begin to move prices higher,” Russell Evans, executive director of the Steven C. Agee Economic Research and Policy Institute, said. “The short-run challenges are expected to persist through at least the first half of 2015 even as long-run opportunities offer reason for energy states to remain optimistic about their role in the ongoing U.S. energy revolution.”Oklahoma State Treasurer, Ken Miller, agreed that the low oil prices would be a major impact on the new year, but his projections were somewhat more dire.“The recent drop in crude oil prices is expected to deeply impact collections during the next fiscal year,” Miller wrote in December’s Economic report. “Forecasts commissioned by the tax commission show a total negative impact of more than $230 million on state revenues.”The economic report also revealed that for the first time in 19 months tax on oil and natural gas productions slipped below the previous year. This only takes into account revenue generated up to November, before several of the price drops.“We’re beginning to see the effects of the general decline in oil prices that began in July,” Miller said. “However, the impact of today’s prices won’t be seen for another few months.”

via Oklahoma Energy sector in for big changes in 2015 | eaglefordtexas.com.

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