How will current events impact oil and gas industry?
TULSA, Okla. (KTUL) — As shocking as they can be to look at, there are silver linings to current gas prices. The first, is that it could be worse.
"The national average is at $4.32 a gallon and Oklahomans, ours remains one of the lowest prices for gas in the nation. We’re at $3.85 a gallon today," said Leslie Gamble of AAA Oklahoma.
The other silver lining is the impact this could eventually have on Oklahoma's economy.
"I work in production," said Drew Ledford, an oilfield worker with an ear to the ground when it comes to producing.
"There is rumors of another boom coming with oil above $100 a barrel," he said.
But right now he says, there is not a boom by any means. In fact, he's earning less money than pre-COVID.
"Myself currently, I’m still, when I first got back to the oilfield last year I saw a 50% pay cut from what I was making prior to COVID," he said.
Those lower wages are one indication companies aren't yet ready to fire up more drilling. Why?
"A lot of major producers are kind of hesitant because the market is so fickle and with the current administration they don’t know where they’re going," he said.
Meanwhile on the infrastructure side of energy...
"We have seen a significant pickup in business in the last 60 days or so," said Geoff Hager of Big Elk Energy Systems.
Big Elk is a Tulsa manufacturing company that produces equipment primarily for the natural gas industry which is finally seeing some relief after the pandemic slowed things way down. As for how Russia's actions could affect things?
"You look a lot of the natural gas being consumed by European nations that’s coming via traditional pipeline from Russia, now they could buy that in LNG form and we could be delivering it to them and then re-gassifying it and put it into a pipeline and making it useful to them. So I’m hoping that there are conversations happening at executive levels to make sure that that’s taking place because it would mean more business for companies like ours as well as many others," he said.
Pain at the pump, with the possibility of a stronger local economy down the road.
"I’ve got to believe that there are lots of talks taking place at this moment for America to become a larger supporter of energy in Europe," said Hager.