Oil and Gas Industry in Oklahoma Recovering From COVID-19

Oil and gas industry

ENID — A broad-based recovery is underway regarding the state of the oil and gas industry in Oklahoma.

Operators of all sizes are making investments right now, said Brook Simmons. He is the president of Petroleum Alliance of Oklahoma. The industry recovery receives support by higher commodity prices. It is after a “challenging, multi-year readjustment of the shale business model and depressed prices.

Simmons said the demand for oil and natural gas is exceeding supply. This drives the higher price and provides Oklahoma the opportunity to participate in that recovery.

“That is a good thing for the state of Oklahoma, from both an employment standpoint and an economic activity standpoint,” Simmons said.

This results in higher prices at the pump, though, Simmons said, adding the only way to work through that is continued investment in producing crude oil and natural gas.

“Over time, we will find that the market will come into balance,” he said. “When that is I don’t know, but that’s generally the path that it’s taken. That’s the nature of the cycle.”

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Source: The Norman Transcript

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