One of the great concerns we have as we are less than a week away from the November election is what effect will we see on state education revenues. I am often asked what my crystal ball shows when we talk about the potential effect of various revenue sources on school budgets. I believe it is important to take time to look at the factors that affect our long- term data points.
Let’s start with the oil breakevens by shale play. The first graph was produced in November 2017, and the second graph was produced in September 2018. The two graphs show an interesting phenomenon that we can probably expect to see manifest itself over the next ten years. What we see here is:
1. Three out of the five lowest cost production zones are located in Oklahoma.
2. It appears the cost of production is moving lower and doing so quickly.
3. Depth doesn’t appear to be as big an impediment to horizontal drilling activity.
Congratulations on completing the 2017-2018 school year, and happy summer to you! We realize summers aren’t necessarily packed full with vacations and relaxing; it's the opposite in fact.
Given the expected budget shortfall during the 2016 legislative session and the fact that Oklahoma schools are likely to face a budget decrease,
As we mentioned in our previous blog post, we will be highlighting a few of the valuable products and services that OPSRC offers to public schools throughout the state.
Events, scholarships, contests and other opportunities for December and beyond.