Strong Economy in Oklahoma
October 7, 2011
Oklahoma is one state offering a thriving economy and personal income growth is at 8%, which is the fifth best in the entire country. Unemployment in the state is quite a bit below the national average with all employment sectors showing job growth, which does include the construction industry, and the housing market is very healthy.
In Oklahoma City, the median housing priced increased 6% while in Tulsa the jump was 5.6%. Throughout the US, there are very few cities that look better which are San Antonio and Austin, Texas and Cape Coral/Ft. Myers, Florida. The last one was hit very hard during the recession but is now sporting a 19.6% increase.
The decent numbers for the state of Oklahoma are due to much finer stuff.
In Oklahoma over 50 of the 77 counties grew over the last ten years with expansions in population of 8.7% to 3.75 million as reported by the Census Bureau.
Lisa Noon the CEO of the Oklahoma Association of Realtors provided a series of highlights:
•State revenues rose 15.5% over last year.
•Oklahoma City ranked in the top 20 metro areas for strong economic performance. OKC added 2,000 jobs in the oil and gas sector and since 2008; it gained 2,500 jobs in the tourism and hospitality sector.
•Double-digit growth in tax commission collections, which is a good sign of economic growth.
•Construction job growth near the top in the country.
•Statewide residential building permits doubled since the start of the year.
Dan Rickman, a professor of economics at Oklahoma State University stated, “We didn’t have any evidence of a housing bubble, so we had no aftermath.”
Until the 1980’s the economy of Oklahoma was dependent on oil and gas only. With the bust in the early 80’s, Oklahoma was thrown into a recession. Since that time, Oklahoma has become very diverse economically.
Rickman explained, “We used to counter the U.S. cycle,” and went on to say, “Now we follow the rest of the nation, but energy is still important enough that it gives us a cushion. When the U.S. economy was heading into a recession in 2007, we enjoyed a big surge in energy prices.”
Even though the service, hospitality, medical, call center and manufacturing industries all have grown, the important thing about the energy industry is that “it’s a very high-income sector and that spills over into a lot of other areas of the economy,” Rickman said.
Chesapeake Energy Corp. and Devon Energy Corp are major oil and gas companies that are based in Oklahoma with Devon Energy Corp recently building a 50 story headquarters in OKC.
Oklahoma City, which is the capital, has helped the states economy with a population in 2001 of 579,000, which has grown 14.6% since 2000. This is wonderful for the housing market.
Steve Mann, a broker/associate and auctioneer at Paradigm AdvantEdge Realty in Oklahoma City and president of the Oklahoma Metropolitan Association of Realtors stated, “In June, our average home price was $163,600 and that’s down a little from May, which was $170,000, but in May we had several million-dollar home sales.”
“Our list-to-sell-price (ratio) is 97 percent and our average days on the market in June were 85. We had 9,000 listings in the metro area a year ago and we have 9,100 listings this year. And we still have new construction.”
Oklahoma City has not seen a severe REO (real estate owned homes) problem.
Chuck Harris, broker/manager with Century 21 All Pro Real Estate in Oklahoma City and a specialist in REO sales stated, “Up to this point, we haven’t had enough REO properties to affect pricing,” and went on to say, “The market wasn’t flooded with REOs and we’ve been real fortunate as we’ve been able to turn most REO properties under 60 days. We are getting families as well as investors.” Harris went on to explain when it comes to foreclosures in Oklahoma City, “we’ve been able to absorb and get them closed out.”
Oklahoma City is not the only city in the state that has enjoyed the economic health. Tulsa, which is the 2nd largest city in the state, only lost some of their population over the last years, being down 0.3% to
391,906 from 2000 to 2010, however, Tulsa added 2,943 jobs since the first of 2010, mainly in the manufacturing sector.
One of Oklahoma City’s exurbs, Edmond saw an increase in their population of 19.2% from 2000 to 2010 to 81,405. According to Noon, “the cost of living there is 8 percent below the national average.”
Other areas around the state such as Ada home 88 miles southeast of Oklahoma City with a population a tad over 17,000 has a jobless rate that according to Noon may be negative.
Ada, Oklahoma has increased 465 government jobs, 444 service positions, 398 manufacturing slots, and 333 new employees in oil and gas extraction, and filled 222 openings in accommodation and food service industries.
“A number of employers and entrepreneurs are doing extraordinarily well in that area of the state,” said Noon.
If you look at the economy, then you can tell that Oklahoma is more than just OK.
Broken Arrow in the Top 25 “Best Places to Retire” by MONEY Magazine
September 30, 2011
Broken Arrow, Oklahoma recently ranked #8 in the top 25 cities chosen by Money Magazine for their 2011 “Top 25 Best Places to Retire,” as reported in a press release.
Broken Arrow was the only city in Oklahoma to make the list, which was chosen by community and entertainment options along with the local health care system options in the area.
The magazine stated in the release, “In the past few years alone, Broken Arrow has seen some notable new developments, including the opening of a 20,000-square-foot YMCA with many programs geared toward active older adults; an impressive performing arts center that raises its curtain for everything from the local orchestra to Broadway tours; and a 68-bed hospital within the highly acclaimed St. John Health System. A half a dozen golf courses, miles of bike and walking paths, two community centers and civic groups galore add to the attraction. And with updated one-story homes starting in the low $100,000s, you’d be paying about half what you would to move to some comparable communities.”
Mayor of Broken Arrow, Mike Lester, stated the city was “thrilled” to be included as well as recognized for being a “great” city for those wishing to retire.
“We know what a wonderful community we live in and it’s nice to see the nation taking notice,” Mayor Lester stated. “We are establishing a trend of being recognized year after year for the amenities and opportunities we have to offer.”
On the top ten list was
1. Marquette, Michigan
2. Cape Coral, Florida
3. Boise, Idaho
4. Danville, Kentucky
5. Weatherford, Texas
6. Southaven, Mississippi
7. Pittsburg, Pennsylvania
8. Broken Arrow, Oklahoma
9. Lake Charles, Louisiana
10. Winston-Salem, North Carolina
Not only was Broken Arrow chosen among the Best Places to Retire but it was also ranked in Money Magazine’s Top 100 “Best Places to Live” in 2010 along with many other national recognitions throughout the last five years as reported in the press release.
Tulsa considered for Oklahoma Museum of Music and Popular Culture
July 1, 2011
The Oklahoma Historical Society is in communication with Bank of Oklahoma to obtain a full square block of land where it would like to build a 67,000-square-foot museum. The Oklahoma Historical Society has chosen a spot in Tulsa’s Brady Arts District to establish the Oklahoma Museum of Music and Popular Culture, which is projected to confirm the state’s status as a “crossroads of creativity.”
The museum, which is nicknamed the OK Pop, would feature large exterior LED screens. The design represents a likely Dick Tracy exhibit. The historical society has been working along side family members of the late Chester Gould, the Pawnee-born cartoonist that created Dick Tracy.
The chosen property is now a parking lot just north of Union Depot. The land unites the Brady District with the downtown Tulsa area, which would be the perfect location for the museum stated historical society Executive Director Bob Blackburn. He went on to say, “It’s the crossroads of Tulsa. Oklahoma has been so blessed with so many creative people … so we have this new theme called ‘crossroads of creativity,’ because so much of America’s and the world’s creative spirit has come through Oklahoma.”
Bank of American and the Oklahoma Historical Society established that the talks are nearing a successful conclusion.
BOK representative Jesse Boudiette stated, “Bank of Oklahoma is pleased to be involved with this project as part of our continued commitment to support the redevelopment of downtown Tulsa and to support initiatives that benefit the entire state of Oklahoma. This museum will help efforts to make our community a major regional entertainment destination and will assist in workforce recruitment and meaningful population growth said in a statement.”
Nicknamed the OK Pop, the new OK Pop museum would be a companion institution to the Oklahoma History Center, Blackburn explained. The historical society is looking to obtain a $40 million bond issue from the state and it plans to match state funds with an $8 million private fundraising campaign. The George Kaiser Family Foundation has put up a $1 million challenge grant to launch the campaign.
If the bond issue is authorized during the fiscal year of 2012, Blackburn stated the museum could open in 2015.
Even though the state is having a few budgets issues he still believes, the OK Pop has a good chance of being built. If the bond issue is authorized during this year, the historical society will not need the funds until the 2014 fiscal year.
He explained, “Right now, the projections are that state revenue will be back to where it was by next year, back to FY ’09 (levels) … and then hopefully by 2014, it will even exceed that.”
“We’re just saying it’d be worth investing the money in this, that it will generate more economic activity and serve a lot purposes,” he stated.
“The OK Pop museum would feature Smithsonian-quality exhibitions showcasing the state’s contributions to music, movies, TV, radio, literature and more. History Center exhibits such as “Another Hot Oklahoma Night: A Rock & Roll Exhibit,” “Chester Gould and Other Okie Cartoonists” and “Pickin’ and Grinnin’: Roy Clark, ‘Hee Haw’ & Country Humor” would form the foundation of the OK Pop’s offerings.”
History Center’s exhibitions former director Jeff Moore has accepted the job as director of the OK Pop museum. He stated, Creativity is “one of Oklahoma’s major exports, and I don’t think the state has always recognized that”, and went on to say, “It’s got so much potential to do so much good for the state in so many ways, including in kind of self-identity, just increasing awareness of how creative and amazing the people of this state are and have been. There’s just so many stories.”
“Oklahoma deserves it. The creatives of Oklahoma deserve it, and Oklahoma needs to be inspired by it. And the world needs to know that Oklahoma’s story is an international story.”
He explained that hundreds of artists have already offered their collections and support which range from Kristin Chenoweth and Garth Brooks to the families of the late Gould and Bob Willis.
Unsurprisingly, the OK Pop Museum would bring in around 100,000 paid visitors a year, along with another 100,000 unpaid guests such as those attending special events, Blackburn suggested.
The OK Pop museum would have a probable $1.8 million annual operations budget and he believes the museum would be able to pay for its own operations from the first year through a planned $3 million endowment, annual fundraising efforts, and a variety of revenue streams which includes admissions, special event rentals, gift shop sales, and a planned parking garage. The parking garage would serve not only the museum but also BOK employees and the surrounding area.
Boudiette stated, “Providing adequate parking will be an important element of this project. Downtown currently has many parking options, and as the Blue Dome and Brady districts continue to expand within the corridor between ONEOK Field and the BOK Center, parking facilities for downtown workers and visitors will be in high demand.”
Jenks Oklahoma searching for land to expand
June 2, 2011
In the town of Jenks, Oklahoma the development of residential as well as schools has gone crazy during the last ten years, however, the amount of land available for commercial development is quite small.
Robert Bell, City Planner stated that less than one square mile is available for any type of retail develo0pment due to the fact that the city is situation in the flood plain.
Bell stated, “There is a huge need for commercial development in Jenks,” and went on to say, “We’re behind the eight ball. There’s a lot of opportunity, but not a lot of land.”
“We think Jenks is desperately underserved in a lot of retail areas,” City Manager Mike Tinker stated. He went on to explain that while Jenks has been quite successful in becoming a destination and has retail opportunities, the “big box anchored developments are harder to come by”.
“It’s the functionality,” Tinker explained. “You can’t buy a pair of socks or a shirt. Selections are limited. You can buy groceries and specialty items, but other than that, you can’t buy a lot of things like you can at Kohl’s or Belk. For a lot of people that’s quality of life.”
In addition, Tulsa has enticed Jenks shoppers to the Tulsa Hills shopping center, which is only a short distance to the north on U.S. 75 and to Riverside Market and King’s Landing across the 96th Street Bridge to the east.
Jenks Public Schools
140 vacant acres a short distance west of downtown on the east side of the Sutherlands on Main Street near U.S. 75 is owned by Jenks Public Schools for the last ten years. The land was originally purchased for the school to expand or to build a new stadium. However, the plans never went forward and Kirby Lehman, Superintendent explained there are no plans for this in the future. At this time, the land is used by the FFA students for a small farm.
Bell stated this lot is on his mind due to of the lack of real estate in Jenks.
“It’s a prime piece of commercial ground, and that’s our problem. We don’t have many,” Bell explained. “Getting that out of the school’s hands is going to be tough, but it needs to be done.”
Lehman stated that to his knowledge there have been no interested buyers.
“If there were, I would bring it up to the school board and discover their level of interest,” Lehman said. “We recognize the land-locked nature of the city and the minimal amount of retail space we have here, but we don’t have a plan with the city to develop it.”
Lehman explained the legal process would involve declaring the lot as surplus property, which would then allow the lot to be put out for competitive bidding.
The school system does continue to expand in other areas and it has become a main contributor r in changing the face of downtown.
The central campus includes a planned aquatic center, a math and science building and a planetarium, in addition to future arts facilities, stadium updates, and an administration building, which have all been made possible by the public’s continued support of school bond issues.
Bell stated, “You have to look at the school as a developer because of the number of things they’re doing,” and went on to say, “They’re doing positive things.”
The school has purchased seventeen properties close to the central campus, with the majority of the properties being older homes in order to make the expansion possible.
Tinker said the city’s comprehensive plan does not call for the school to expand any farther into the downtown area. “The central campus is very significant. It brings a lot of people into the community, and we appreciate that.”
Bell explained the updates to the central campus would incorporate well with the neighborhood and bind in with the commercial development that is expected to occur along the newly repaved A Street.
The central campus serves students in 9th through 12th grades and with staff and students, serves 3,400 individuals daily.
Lehman explained that the community, not only the students, would have the opportunity to enjoy the aquatic facilities and the planetarium.
“There will be more community activities in these two facilities than in any facilities we’ve had in the past,” Lehman stated. “The reason for that is the community paid for them, so the community should be able to use them.”
Due to the economy, a few of the development plans have been put on the back burner, however, the Village on Main is moving ahead, and parts of the land with U.S. 75 frontage are prime for development.
The area west of U.S. 75 between 111th and 121st streets is zoned commercial, along with a stretch on 121st Street across from the Wal-Mart Supercenter in Glenpool.
“Now its set up perfectly – it’s prime,” Bell stated.
The American Civil War’s 150-year Anniversary Will be commemorated
May 18, 2011
Cherokee Nation Cultural Tourism will commemorate the American Civil War’s 150th Anniversary via 2 cultural tours that will be held on April 2 and April 16. Private tours will also be available throughout the entire year. All of the tours will highlight the historic sites associated with the Civil War all across the Cherokee Nation.
Guests of the events will visit historic sites in the Cherokee Nation that played a considerable role during the Civil War. The tours include a visit to historic to such locations as the Capitol Square in Tahlequah, Okla., so guests can learn about the destruction by Confederate troops. Guests will also have the opportunity to visit the Murrell Home, which is an antebellum home that survived the fires of the Civil War. Visitors will also explore Fort Gibson Historic Site, which changed hands many times during the Civil War between the Union and Confederate forces.
One stop will be at the Honey Springs Battle site, which was a turning point in the Civil War along with being the site of the largest battle fought between the states in Indian Territory.
Molly Jarvis, Vice President of Cultural Tourism at Cherokee Nation Entertainment stated, “Cherokee Nation has an abundance of physical resources that played a significant role in shaping the Civil War in the region that represents both sides of the conflict,” and went on to say, “The Civil War anniversary is also a unique opportunity to work with the state of Oklahoma to recognize and honor the historic sites and locations from 150 years ago.”
The Oklahoma Historical Society initiated recently The Oklahoma Civil War Sesquicentennial Commission that will start commemorating the 150th Anniversary of the American Civil War with programs and events planned over the next five years, starting in 2011 through 2015. The Commission will center on discussion, education, and preservation efforts to make sure history is remembered today and preserved for the tomorrow.
The major event in 2011 to observe the 150th anniversary of the Civil War will be an extraordinary reenactment of the Battle of Honey Springs. During the weekend of April 29 thru May 1, the original battlefield will be active once again with the roar of cannons, volley fire from muskets and ring heard from the clash of saber-to-saber combat. The Battlefield is just north of Checotah, Oklahoma. It is expected that several thousands of spectators along with re-enactors will attend the event.
Tour Pricing
The pricing for the event is tiered and is subject to a tribal tax for both consumer and groups. The prices are as follows
Adults (ages 12 to 61): $50.00 each
Seniors (ages 62 and up): $45.00 each
Children (ages 4 to 11): $20.00 each
Children (ages 3 and younger): Free.
Children three and younger are free but must sit on the lap of a parent and share a meal. If the child uses a seat or receives a separate meal the children’s admission price will apply. Lunch is included in the price above.
There are special group rates available beyond the prices listed above. In addition to experiencing the Civil War History Tour, there are varieties of activities to add-on to their trip that are sold separately or can be combined with the tour. The additional activities range from storytelling workshops, basket weaving, language and Syllabary workshops, Genealogy workshops, traditional pottery workshops, and traditional Cherokee cuisine, to name a few.
Timeline and Tour
The Cherokee Nation, even though it was not a state, was involved in the Civil War as a foreign ally. A few of the Cherokee troops were allied with the Union while some Cherokee troops were allied with the Confederacy. This brought about a war within a war that shattered much of the Cherokee Nation. Main events in the Cherokee Nation Civil War history timeline include:
- May 17, 1861, Principal Chief of the Cherokee Nation John Ross issued neutrality proclamation reminding the tribe of obligations to the United States.
- Aug. 21, 1861, Chief Ross and the Executive Council called a general assembly of the tribe in Tahlequah, Okla. The approximate 4,000 men attending the convention voted by acclamation to join the South.
- Oct. 7, 1861, Treaty with the South concluded and signed at Murrell Home in Park Hill, Okla.
- Oct. 28, 1861, Cherokee National Council issued declaration of war with the United States.
- July 15, 1862, Chief Ross taken into custody by Union officers.
- Aug. 3, 1862, Chief Ross escorted out of the Cherokee Nation into Kansas from where he traveled to Philadelphia and Washington, D.C.
- Aug. 21, 1862, Stand Waite elected Principal Chief by first Confederate Cherokee Convention. The election was not valid because a majority of Cherokees did not vote.
- Feb. 20, 1863, Loyal Ross Cherokees revoked the treaty with the South and pledged loyalty to the Union at an emergency session of the Cherokee National Council. In addition, all Confederate officers were removed from office, slaves were emancipated and John Ross was reaffirmed as Principal Chief.
- July 17, 1863, Battle of Honey Springs in Creek Nation.
- Oct. 28, 1863, Stand Waite and his men burn the Cherokee Capitol buildings in Tahlequah and Principal Chief John Ross’ home in Park Hill, Okla.
- Sept. 1, 1865, Chief John Ross returns to Cherokee Nation.
- July 19, 1866, Terms of reconstruction treaty agreed upon and signed by Cherokee delegation. The treaty was ratified by the United States Congress on July 27 and further proclaimed by August 11, 1866.
To learn more visit http://www.travelok.com/media_room/release/cherokee-nation-cultural-tourism-commemorates-the-american-civil-wars-150-year-anniversary.
CLS PLASTICARD to Construct New Plant in Perkins, Oklahoma
May 5, 2011
CLS PLASTICARD is a nationally known company that creates plastic cards, mainly known for their hotel key cards announced recently the construction of a new plastic card printing building in Perkins, Oklahoma.
The company announced plans to build a second facility in Perkins, Oklahoma, which will increase the capability for gift card and hotel key cards printing.
CLS Plasticard is planning to provide long-term practicability to this plant by slowly substituting some of the production volume from it Teslin card printing facility home in Bixby, Oklahoma.
CLS Vice President Bryan Mark Kinney stated, “We are extremely excited about the opportunities this third location provides,” and went on to say, “We believe this will make us a more competitive company and will definitely benefit our clients”.
The company has been known for creating high-end, durable plastic card products, which includes hotel key cards, membership cards, gift cards, key-tags, and fundraising cards, to name a few.
OK City Star Contest Auditions announced
May 3, 2011
This year the OK City Star Contest has expanded to include Edmond, Norman, and Tulsa.
The fifth annual OK City Star Contest is increasing its open audition sites to include Edmond, Norman, and Tulsa. The contest is open to singers between the ages of 16 and 25 and allows young performers a chance to work with a few of the state’s top music professionals. Contestants also have the opportunity to earn a $2,000 prize along with having an original song recorded professionally and played via radio and television.
Auditions start at 4pm on May 19 in the OK City StarMobile at the Norman Chick-fil-A, 2437 W Main. Auditions will start at 4 p.m. on May 20, at the Sweet Adelines International headquarters, 9110 S Toledo in Tulsa.
The final rounds will start at 9 a.m. on May 21 at the Edmond Chick-fil-A, 1210 E Second, and at 3 p.m. on May 21 at the Oklahoma City Chick-fil-A, 6201 N May. Contestants will be asked to perform 16 measures of music in front of a panel of three judges.
The top forty contestants will move to the semifinal round on June 11 at Red Pin Bowling plaza on the Bricktown Canal. Finals will be held on June 18 at the Petree Auditorium at the Oklahoma City University. Contestants that reach the semifinals will be invited to attend the OK City Star Educational Symposium at no charge due to a grant from the Kirkpatrick Foundation.
The symposium will provide instruction in proper warm-ups, vocal production, working with microphones, song selection, and other performance-related areas. The OK City Star Educational Symposium will be from 10 a.m. to 4 p.m. on June 4 at the Arts at St. Luke’s, 222 NW 15.
The OK City Star contest is a project of the OK City Chorus of Sweet Adelines. For more information regarding the auditions, visit www.okcity.org.
Upcoming Events in Tulsa
May 1, 2011
For those living in and around Tulsa there are a few exciting events coming your way.
Will Rogers Stampede PRCA Rodeo will be held at the Will Rogers Stampede Arena in Claremore on May 27 thru May 29.
Catch the Fever Music & Festival Grounds will be held in Pryor on May 27 thru May 29.
The Backwoods Bash Music & Camping Festival will be celebrated at Keystone Lake in Prue on May 27 thru May 29.
You can enjoy Bigheart Day in Barnsdall on Main Street on May 28.
The Oklahoma Renaissance Festival will be held at the Castle of Muskogee in Muskogee on May 28 thru May 30.
Claremore Regional Airport will host Okie Flyers Fly-In on May 28.
The Waylan’s Ku-Ku Drive-In will be the place for the Auto/Motorcycle Event Rocklahoma in Miami known as the Route 66 Cruise Night on May 28.
May 27 – 30 is the Oklahoma Kansas Welsh Pony Society, which will be at the Claremore Expo Center along with the Tulsa Roundup Dog Shows, from 8:30am-4pm, at the Tulsa Expo Square, QuikTrip Center. Admission is free to the Tulsa Round Dog Shows.
For more information on the Oklahoma Kansas Welsh Pony Society, please visit
http://www.visitclaremore.com/expo/expo.htm.
For more information on the Tulsa Roundup Dog Shows, visit http://www.tulsakennelclub.com/ or http://www.exposquare.com/.
Cats will be performed at the Tulsa Performing Arts Center on May 31 – June 1, 2011. Tickets for the performance will go on sale April 28. More info can be found at http://www.tulsapac.com.
The 2011 FIVB Bama World League Volleyball will be held at the University of Tulsa on June 24 – 25, 2011. During the event the #5 US Men’s National Volleyball Team and #1 ranked Brazil will compete during this internationally broadcast match. Tickets can be purchased at TU’s box offer at the Reynolds Center, 3208 East 8th St., during the hours of 8:30 a.m. and 5 p.m., Monday through Friday. Prices are listed below
Upper Bowl (General Admission) – $8
Ends of Lower Bowl – $12 ($8 for group of 20+)
Reserved Lower Bowl – $15
Reserved Lower Bowl Padded Seats – $20
Lawton-Fort Sill Regional Airport Upgrade
April 21, 2011
On Tuesday, the City Council voted to allow the Lawton-Fort Sill Regional Airport to use $150,000 in hotel/motel tax revenue as funding for helping to renovating the terminal at airport.
The unanimous agreement occurred at the first meeting for new Ward 5 Councilman Rex Givens and new Ward 3 Councilwoman Rosemary Bellino-Hall that were sworn into office just before Tuesday’s council meeting started and for Mayor Fred Fitch’s State of the City address.
Council members gave the second of new important agreements while voting for the hotel-motel tax expenditure, which will allow expenditures from the economic development category of the hotel-motel tax fund. Under the city’s agreement and the Lawton-Fort Sill Chamber of Commerce and Industry, the governing boards of both are required to pass resolutions of support prior to the funds being allocated for economic development projects. The chamber board gave their approval for this during the February 22 meeting.
The hotel-motel tax revenue, which is generated by a 5 percent tax charged on the rental of hotel and motel rooms in the city, is provided to the City of Lawton. This tax allocates 70 percent of annual revenues to the chamber of commerce and then divides the remaining 30 percent into four other categories, which includes a 15% allocation that finances qualified economic development projects. Those that supported the renovation of the terminal project meets the qualifications, noting the airport is the front door of the community, however the terminal is not adequate to serve the public. The officials at the airport explained they cannot fund the renovation project without assistance from other means.
Barbara McNally, Airport Manager, stated to the council that hotel-motel tax revenue will be matched with funds from the Lawton Metropolitan Area Airport Authority along with a grant to pay for an estimated $360,000 of upgrading to a terminal that is “very worn and dated.” The project will include everything from new terminal signs to new paint on the walls, which will integrate more Southwest Oklahoma colors, plants and natural materials, McNally stated. The renovations will also integrate comments from airport passengers that have suggested the terminal needs a Wi-Fi area as well as more seating.
Canadian oil surplus at Cushing, OK could keep prices low
April 17, 2011
An excess of Canadian oil stored at the Cushing, Oklahoma storage hub will lower prices there for at least two years until new pipelines can be created that will take the crude to other markets, as reported by J.P. Morgan’s head of global oil research.
The oil faces blockage both in Western Canada and at the Cushing, OK site, which is trapping it in both locations and keeping prices low, stated Lawrence Eagles in a presentation to the World Heavy Oil Congress.
The hub in Cushing is the delivery point for the West Texas Intermediate futures contract, which has sold for quite a bit below the European Brent benchmark, mainly due to larger shipments of Canadian oil into the hub, which have pushed storage levels to record highs.
Eagles reported, “That has had a very significant dampening effect on prices, particularly over the past six months or so,” and went on to say, “Although policies will be in place to improve the situation, I think it will take a couple of years before we finally get that bottleneck and that logjam cleared.”
He went on to explain his forecast assumes new pipelines like TransCanada Corp’s (TRP.TO) planned Keystone XL line, are built to take oil to the United States Gulf Coast refining hub from Cushing, OK.
If these lines do not materialize, the believes shippers will keep finding other methods of taking Cushing oil to the Gulf of Mexico in order to take advantage of the large spread between the cost of a barrel of oil at the storage hub and what Texas and Louisiana refineries are paying for similar grades.
He stated, “People are finding more ways every day to get oil out of the region and down to the Gulf Coast,” and went on to say, “If the price is there, price will find a way.”
He also explained that the bottleneck in Western Canada could be relieved by increasing access to the Asian market by adding new pipeline space to the country’s Pacific Coast.
Russia has improved returns for its oil after building the Eastern Siberia-Pacific Ocean pipeline to export crude to China, Japan, and Korea, which lowers its dependence on the European market, Eagles said.
“ESPO is a premium-price crude in the Asian market,” Eagles said. “It’s gone from being a heavily discounted new crude to being quite a sought-after crude at this point in time … It’s Economics 101, if you have more demand for your product you get a better price.”