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energy

An American Energy Woodford well near Perkins, Okla.
Joe Wertz / StateImpact Oklahoma

As crude prices limp along, a tax rebate for “economically at-risk” wells is poised to grow into one of the state’s biggest tax breaks for business and industry.

Two years ago, when Oklahoma crude was selling for about $100 a barrel, the rebates totaled just $11 million, Oklahoma Watch’s Warren Vieth reports:

Some parts of Oklahoma and Texas now have about the same risk of an earthquake as parts of California, according to the U.S. Geological Survey.

The big difference is, the quakes in Oklahoma and Texas are "induced" — they're caused by oil and gas operations that pump wastewater down into underground wells.

Continental Resources founder and CEO Harold Hamm, second to the left, at the Oklahoma Independent Petroleum Association's office in Oklahoma City.
Joe Wertz / StateImpact Oklahoma

Oklahoma legislators are considering eliminating some tax credits and incentives for businesses to help plug a $1.3 billion budget gap. The state’s fiscal crisis has led some oil and gas leaders to push lawmakers to end incentives for the wind industry.

INCENTIVE AGREEMENT

Oklahoma House Speaker Jeff Hickman, R-Fairview.
Joe Wertz / StateImpact Oklahoma

The Oklahoma House on Monday voted to approve legislation clarifying and confirming the authority of state oil and gas regulators to take actions designed to stop industry-linked earthquakes.

Jack Romine stands near a makeshift chimney state inspectors installed over an abandoned, leaky well that was discovered near his home in Bartlesville, Okla.
Joe Wertz / StateImpact Oklahoma

Oklahoma has hundreds of abandoned oil and gas wells, the byproduct of a century of petroleum production. Left unrepaired, many of these wells can endanger people and the environment. The state has a fund to plug abandoned wells, but some of that money has been diverted due to budget cuts.

Jack Romine discovered natural gas without spending a dime on exploration, drilling or production.

The Chisholm View wind farm near Hunter, Okla.
Joe Wertz / StateImpact Oklahoma

Gov. Mary Fallin signed a bill in May 2015 ending a program that afforded many wind developers a five-year exemption on property taxes. The measure, Senate Bill 498, authored by Mike Mazzei, R-Tulsa, was projected to save the state $500 million over 10 years by sunsetting an ad valorem exemption on Jan. 1 2017.

oil pump jack
Paul Lowry / Flickr

It’s been another volatile week for Oklahoma’s energy industry, and many of the state’s oil and gas companies released earnings report for the final quarter of 2015 that continue to paint a grim portrait of the economic downturn.

 

Employee Gene Howell and co-owner Ross Ledbetter at Reeder's Auto and Tire in Midtown Tulsa, Okla.
Joe Wertz / StateImpact Oklahoma

Crashing crude oil prices are fueling big bargains for American motorists, who are driving away with tanks full of inexpensive gasoline. Today, the national average is $1.71 for a gallon of regular unleaded. Oklahoma could be one of the first places in the country to see gas prices dip below $1 a gallon.

A shiny black Mercedes pulls up near a pump, the bell rings and Ross Ledbetter tells the driver to pop the hood.

“It’s showing full,” he shouts. “You have a concern?”

The Devon Energy Center in downtown Oklahoma City.
Brent Fuchs / The Journal Record

About 1,000 Devon Energy employees will lose their jobs in the next few days, with 700 at the company’s headquarters in Oklahoma City learning their fate by Thursday. Field workers will be notified by February 22.

A SandRidge Energy well in northwestern Oklahoma.
Joe Wertz / StateImpact Oklahoma

The Sierra Club filed a federal lawsuit today against three Oklahoma energy companies over earthquakes linked to oil and gas production.

The lawsuit, filed in the U.S. District Court for the Western District in Oklahoma City, accuses Chesapeake Energy, Devon Energy and New Dominion of operating wastewater injection wells that have contributed to a massive spike in earthquakes in Oklahoma and Kansas.

Oklahoma Geological Survey seismologists and representatives from the Corporation Commission lead a public meeting on earthquakes held in March 2015 in Medford, Okla.
Joe Wertz / StateImpact Oklahoma

A former research seismologist with the Oklahoma Geological Survey says agency leaders and other state officials fostered a culture of hesitation and reluctance to act on science suggesting the state’s earthquake boom was linked to oil and gas activities.

Gov. Mary Fallin and Secretary of Energy and Environment Michael Teague at the Governor's Energy Conference September 4, 2014 in Oklahoma CIty.
Joe Wertz / StateImpact Oklahoma

Gov. Mary Fallin on Thursday approved the transfer of nearly $1.4 million from the state emergency fund to strengthen Oklahoma’s earthquake response.

The money is going to a pair of agencies tasked with researching the earthquake surge and regulating the oil and gas activities likely causing it.

Oklahoma Water Resources Board project coordinator Jason Murphy samples water in the frigid Canadian River east of Oklahoma City.
Joe Wertz / StateImpact Oklahoma

Oklahoma's economy runs on oil. The energy industry drives 1 in 5 jobs and is tied to almost every type of tax source, so falling oil prices have rippled into a state budget crisis.

Crude oil prices have dropped more than 70 percent, and that's created problems across government agencies in Oklahoma. Jason Murphy is a project coordinator for the Oklahoma Water Resources Board. He slides on a pair of waders, unspools a sensor probe and splashes into the frigid Canadian River east of Oklahoma City.

Oilfield trucks line up at Overflow Energy's Oakwaood No. 1 disposal well in western Oklahoma.
Joe Wertz / StateImpact Oklahoma

A string of widely felt earthquakes is rattling residents and seismologists, who are warning that parts of Oklahoma could be primed for more severe shaking.

More than 5,700 earthquakes shook the state in 2015 — a record year of seismic activity in Oklahoma. The New Year is off to a shaky start.

A Devon Energy disposal well near Stillwater, Okla.
Joe Wertz / StateImpact Oklahoma

Fourteen Edmond residents filed a lawsuit Monday against a dozen oil and gas companies, “claiming their saltwater disposal wells were in part to blame for earthquakes that hit central Oklahoma in recent weeks,” The Oklahoman‘s Paul Monies reports.

An oil-field truck pulls into a well in north-central Oklahoma.
Joe Wertz / StateImpact Oklahoma

Thirty-six people in Oklahoma have died in crashes “involving trucks hauling oilfield wastewater and equipment” over the last eight years, The Frontier and News9 report.

Provided

State oil and gas authorities are finalizing legal action to force a “financially strapped” Oklahoma energy company to abandon disposal wells suspected of contributing to earthquakes.

Sandridge Energy has been defying directives from the Oklahoma Corporation Commission to shut down six disposal wells in north-central Oklahoma. Commission staff are finalizing a legal filing that, if approved, could modify permits and halt operation of the wells.

Chesapeake Energy employees leave buildings after layoffs were reported Sept. 29, 2015.
Brent Fuchs / Journal Record

The downturn in energy prices dominated the news cycle in Oklahoma in 2015, affecting the bottom line of every oil and natural gas producer, the state’s budget, and had countless trickle-down effects in a state with an economy so reliant on the energy sector.

The price plummet actually started in June 2014, when oil was still above $100 per barrel. They rapidly declined, beginning 2015 at around $55, and currently sit in the $30-40 range.

The Rev. Dr. Bruce Prescott speaks during Tuesday's protest on the steps of the Oklahoma Corporation Commission as other demonstrators hold signs voicing opposition to OG&E's demand charge proposal.
Joe Wertz / StateImpact Oklahoma

Oklahoma Gas and Electric, the state’s largest electricity utility, wants regulators to approve new fees for customers who install solar panels. The request is now in the hands of Oklahoma’s three-member Corporation Commission, which has to weigh the real cost of reliable electricity and put a fair value on power from the sun.

Suzette Grillot joins the show from Paris to talk about what she’s seen in the European city in just the few weeks after the coordinated terrorist attack by ISIS militants.

Then guest host Brian Hardzinski talks with Ed Morse, the head of Global Commodities Research for Citigroup. He calls North America “the New Middle East,” – taking over the role of swing producer from Saudi Arabia. He'll also explain changing oil markets how he applies lessons from the 1980s to today. 

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