Oklahoma Economic Outlook 14 by Dan Rickman Regents Professor of Economics and Oklahoma Gas and Electric Services Chair in Regional Economic Analysis http://economy.okstate.edu/
Quarterly U.S. Real GDP Growth: IHS Global Insight, Inc. (% Annualized Growth Rates) 4. 3.5 3..85.5.45. 1.74 1.5 1..5. 1Q1 1Q 1Q3 1Q4 13Q1 13Q 13Q3 13Q4 14Q1 14Q 14Q3 14Q4 15Q1 15Q 15Q3 15Q4 %ΔU.S. Real GDP
U.S. Employment Growth/Unemployment (IHS Global Insight, Inc.) 3 1 1.7 1.63 1.6 1.78 9 1-1 7 8 9 1 11 1 13 14 15 16 17 18 19 1 3 8 7 - -3-4 6 5-5 4 %ΔEmployment Unemployment(%)
$/bbl $/mmbtu Energy Prices (IHS Global Insight, Inc.): West Texas Intermediate Oil (WTI) and Henry Hub Natural Gas (PNGHH) 11 4.5 15 1 95 3.55 15.8 3.7 98.15 4. 3.5 9 3. 85.5 8 1Q1 1Q 1Q3 1Q4 13Q1 13Q 13Q3 13Q4 14Q1 14Q 14Q3 14Q4 WTI PNGHH.
State Total Employment Growth 11-1 (U.S. Bureau of Economic Analysis) 7 3 1 3 US=1.86% OK=.%
Change in Oil and Gas Jobs: ave(1:11)-ave(1:9) Cimarron Texas Beaver Harper Woods Alfalfa Grant Kay Nowata Washington Craig Ottawa Ellis Woodward Dewey Major Blaine Garfield Kingfisher Noble Payne Logan Osage Pawnee Creek Tulsa Delaware Rogers Mayes Wagoner Cherokee Adair Roger Mills Beckham Greer Harmon Jackson Custer Washita Kiowa Tillman Caddo Comanche Cotton Lincoln Okmulgee Muskogee Canadian Oklahoma Okfuskee Sequoyah Mcintosh Haskell Cleveland Pottawatomie Seminole Grady Mcclain Hughes Pittsburg Le Flore Latimer Garvin Pontotoc Coal Stephens Murray Atoka Pushmataha Carter Johnston Jefferson -1,3 to to 5 51 to 1 11 to 3,5 Data Source: Economic Modeling Specialists International (EMSI) Love Marshall Bryan Choctaw Mccurtain
State Total Nonfarm Employment Growth (U.S. Bureau of Labor Statistics: October 1-13) -1. to.8.8 to 1.1 1.1 to 1.77 1.77 to 4.47 US=1.55% OK=.95%
Baker-Hughes, Inc. Oklahoma Rig Count: Oil 18 16 14 169 143 1 1 8 6 4 1 4 7 1 13 16 19 5 8 31 34 37 4 43 46 49 5 Nov'11-Nov'1 Oil Rigs Nov'1-Nov'13 Oil Rigs
Jan- Jun- Nov- Apr-1 Sep-1 Feb- Jul- Dec- May-3 Oct-3 Mar-4 Aug-4 Jan-5 Jun-5 Nov-5 Apr-6 Sep-6 Feb-7 Jul-7 Dec-7 May-8 Oct-8 Mar-9 Aug-9 Jan-1 Jun-1 Nov-1 Apr-11 Sep-11 Feb-1 Jul-1 Dec-1 May-13 1, Oklahoma Crude Oil Production (thousands of barrels): EIA 1, 8, 6, 4,, Oklahoma Crude Oil Production (thousands of barrels)
Baker-Hughes, Inc. Oklahoma Rig Count: Natural Gas 14 1 1 8 6 4 33 9 1 4 7 1 13 16 19 5 8 31 34 37 4 43 46 49 5 Nov'11-Nov'1 Gas Rigs Nov'1-Nov'13 Gas Rigs
Jan-1 May-1 Sep-1 Jan- May- Sep- Jan-3 May-3 Sep-3 Jan-4 May-4 Sep-4 Jan-5 May-5 Sep-5 Jan-6 May-6 Sep-6 Jan-7 May-7 Sep-7 Jan-8 May-8 Sep-8 Jan-9 May-9 Sep-9 Jan-1 May-1 Sep-1 Jan-11 May-11 Sep-11 Jan-1 May-1 Sep-1 Jan-13 May-13, Oklahoma Natural Gas Gross Withdrawals (MMcf): EIA 18, 16, 14, 1, 1, 8, 6, 4,, Oklahoma Natural Gas Gross Withdrawals
Baker-Hughes, Inc. Oklahoma Rig Count: Total 5 198 179 173 167 15 Current=17 1 5 19% increase in number of wells drilled from third quarter 1-13 in Oklahoma major shale plays; 8.8% increase from second to third quarter of 13 1 3 4 5 6 7 8 9 1 11 1 13 14 15
Quarterly U.S. and Oklahoma Nonfarm Employment Growth: (Seasonally-Adjusted Annualized Percent Change) 6 4 - -4-6 -8 U.S. Nonfarm Employment (millions) Oklahoma Nonfarm Employment (thousands)
Oklahoma Annual Nonfarm Employment Growth (%) 4 3 1.9 1.9 1 1.4.9 1. 19911991993199419951996199719981999134567891111131415-1 - -3-4
Percent unemployment Percent growth Oklahoma Unemployment Rate and Nonfarm Employment/Population Growth 8.5 7. 6 1.5 5 5.19.61 1..5 4 3 -.35. -.5-1. 1-1.5 1 3 4 5 6 7 8 9 1 11 1 13 14 -. OK Unemployment Rate OK Population Growth OK Relative Nonfarm Employment Growth
Sector Change in Oklahoma Employment (Jobs): 13-14 Other Services Information Food Manufacturing Transportation & Public Utilities Real Estate Other Nondurable Goods Manufacturing Natural Resources & Mining Plastics and Rubber Manufacturing Mgt of Companies & Enterprises Financial Activities Contract Construction Wholesale Trade Health Care & Social Assistance Electrical Equipment Manufacturing Transportation Equipment Manufacturing Educational Services Other Durable Goods Manufacturing Federal Government Fabricated Metals Manufacturing Nonelectrical Machinery Manufacturing Professional, Scientific, and Technical Retail Trade State and Local Government Accommodation, Food Services, Leisure Admin., Support, & Waste Mgt. Total Nonfarm: 19,688-1, 1,, 3, 4, 5, 6,
Sector Change in Oklahoma Employment (%): 13-14 Total Nonfarm Electrical Equipment Fabricated Metals Admin., Support, & Waste Mgt. Nonelectrical Machinery Other Durable Goods Educational Services Transportation Eq. Professional, Scientific, and Technical Accommodation, Food Services, Leisure Federal Government Retail Trade Plastics and Rubber Manufacturing Mgt of Companies & Enterprises State and Local Government Wholesale Trade Contract Construction Financial Activities Health Care & Social Assistance Natural Resources & Mining Other Nondurable Goods Manufacturing Transportation & Public Utilities Real Estate Other Services Food Manufacturing Information - 4 6 8 1 1.
Oklahoma Annual Real Personal Income and GDP Growth (%) 8 6 4.97.7 3.6 1998 1999 1 3 4 5 6 7 8 9 1 11 1 13 14 15 - -4-6 -8 Real Personal Income (8-84$) Total Nonfarm Real GDP
3Q1 3Q 3Q3 3Q4 4Q1 4Q 4Q3 4Q4 5Q1 5Q 5Q3 5Q4 6Q1 6Q 6Q3 6Q4 7Q1 7Q 7Q3 7Q4 8Q1 8Q 8Q3 8Q4 9Q1 9Q 9Q3 9Q4 1Q1 1Q 1Q3 1Q4 11Q1 11Q 11Q3 11Q4 1Q1 1Q 1Q3 1Q4 13Q1 13Q 13Q3 Oklahoma City and Tulsa Quarterly Employment Growth (Deseasonalized, Annualized Percent Growth) 6 4 - -4-6 -8 Oct 1-13 Δemp (thous.): OK= 15.4 (.9%) OKC= 13.8 (.3%) Tulsa= 8.6 (.%) Rest of State= -7. (-1.%) -1 OKC Tulsa OK
Risks and Longer Term Outlook IHS Global Insight: % chance of recovery stalling Slowing world energy demand and increased supply further reduce oil prices, reduced political tensions with IRAN As U.S. economy nears full employment, lower in-migration and labor force growth; long-term aging of the population and slowing labor force growth Lower than average skills of labor force o o o o o o Increasing mismatch between skill demands and skills of labor force Polarization of labor market: fastest occupational growth at the top and bottom ends of skill levels, slower growth in the middle 197: 4.6% of those with Bachelor s degrees (or higher) lived in top educated metropolitan areas 1: rose to 44% (Brookings Institution) Metro average in 1: 3%, OKC: 6.%, Tulsa: 4.5 %, and both had slower than average growth 198-1 Oklahoma had the third largest per pupil cuts to education in the nation 8-13 (Center on Budget and Policy Priorities) Oklahoma teacher pay among the lowest in the nation, even after adjusting for price and quality of life differences across states; teacher pay relative to other occupations requiring a college degree related to retention of teachers in the profession
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