THAT LAWMAKERS NEED TO BE PAYING ATTENTION. YEAH. AS WE REPORTED EARLIER THIS MONTH THAT DEVON ENERGY AND EXPAND ENERGY ARE MOVING THEIR HEADQUARTERS TO TEXAS. NOW, WE’RE HEARING FROM THE PETROLEUM ALLIANCE, WHO IS CALLING THIS A WAKE UP CALL. NOBODY LIKES TO LOSE COMPANIES LIKE EXPAND OR DEVON. THAT’S NOT GREAT FOR THE STATE OF OKLAHOMA. THIS WAS THE LETTER THE PETROLEUM ALLIANCE OF OKLAHOMA SENT TO STATE LAWMAKERS THIS WEEK, CALLING THE RECENT RELOCATIONS OF TWO GIANT ENERGY COMPANIES TO HOUSTON A WAKE UP CALL FOR OKLAHOMA’S OIL AND GAS INDUSTRY. THE OIL AND GAS INDUSTRY REMAINS THE BIGGEST ECONOMIC CONTRIBUTOR TO THE STATE OF OKLAHOMA, AND THE LARGEST TAXPAYER, AND IT’S IMPORTANT THAT LAWMAKERS RECOGNIZE THAT IT’S FRAGILE. COMPANIES CAN MAKE DECISIONS WITH THEIR CAPITAL, AND THEY CAN LEAVE, THE ALLIANCE SAYS. PASSED LEGISLATION, INCLUDING TAX INCREASES AND REGULATORY CHANGES, SHIFTED DRILLING ACTIVITY AND INVESTMENT ELSEWHERE. SENATE PRO TEM LONNIE PAXTON SAYS HE MET WITH THE ALLIANCE THIS WEEK AND SUPPORTS THE CONCERNS IN THE LETTER. KIND OF A GUT PUNCH, BUT SOMETHING WE NEEDED TO SEE. PAXTON SAYS HE’S ALREADY WORKING ON POLICY CHANGES. THERE’S THINGS I’M ACTUALLY ALREADY WORKING ON, AND I TOLD THEM I WANT TO PRIORITIZE A COUPLE OF THOSE THAT MAKE THE REGULATORY SIDE OF THIS VERY, VERY DIFFICULT. ONE OF THE ONE OF THEM IS A THING CALLED PRCA, A REVENUE STANDARDS ACT. IT IS EXTREMELY BUSINESS UNFRIENDLY. OKLAHOMA HAS THE LEAST UPSIDE VALUE IN THE NATION WITH REGARD TO ITS ASSETS. THE HIGHEST BREAK EVEN COSTS IN THE NATION WITH REGARD TO ITS ASSETS, BUT ALSO IT HAS THE LOWEST COST PER LOCATION, WHICH ATTRACTS BARGAIN HUNTERS. WE WANT TO ATTRACT THAT INVESTMENT TO OKLAHOMA FROM TEXAS AND COLORADO AND EVERY OTHER STATE. SO IT WAS JUST A REMINDER TO LAWMAKERS THAT WE NEED TO DO BETTER GOING FORWARD. AND THOSE ENERGY COMPANIES ARE EXPECTED TO MOVE THEIR HEADQUARTERS I
Oklahoma energy industry faces challenges as companies relocate to Texas
The Petroleum Alliance of Oklahoma has issued a warning to state lawmakers following the relocation of major energy companies to Texas, urging them to address legislative issues impacting the oil and gas industry
The Petroleum Alliance of Oklahoma has issued a warning to state lawmakers after the relocation of major energy companies, Devon Energy and Expand Energy, from Oklahoma to Texas, calling it a “wake-up call” for the state’s oil and gas industry.>> Download the KOCO 5 app | Subscribe to KOCO 5’s YouTube channel | Sign up for KOCO 5’s Morning Newsletter”Nobody likes to lose companies like Expand and like Devon. That’s not great for the state of Oklahoma,” said Brook Simmons, president of the Petroleum Alliance of Oklahoma.The letter emphasized the importance of the oil and gas industry as Oklahoma’s biggest economic contributor and largest taxpayer, highlighting its fragility. “The oil and gas industry remains the biggest economic contributor to Oklahoma, and the largest taxpayer, and it’s important that lawmakers realize it’s fragile. Companies can make decisions with their capital and they can leave,” Simmons said.The alliance attributes the exodus to past legislation, including tax increases and regulatory changes, which have shifted drilling activity and investment elsewhere. Senate President Pro Tem Lonnie Paxton expressed his support for the concerns raised in the letter, saying, “Kind of a gut punch, but something we needed to see.”Paxton said he is already working on policy changes to address these issues. “There’s things that I’m actually already working on, and I’ve told them I want to prioritize a couple of those, that make the regulatory side of this very, very difficult. One of them is a thing called PRSA. It’s called a production revenue standards act, it is extremely business-friendly,” he said.Get the latest news stories of interest by clicking here.Simmons further explained the challenges facing Oklahoma’s energy sector.”Oklahoma has the least upside value in the nation with regard to its assets, the highest breakeven cost in the nation with regard to its assets, but also its lowest cost per location, which attracts bargain hunters. We want to attract that investment to Oklahoma, from Texas, Colorado, and every other state. So it was a reminder to lawmakers we need to do better moving forward,” Simmons said.Top HeadlinesFormer Prince Andrew arrested on suspicion of misconduct in public office over ties to EpsteinInteractive map shows where wildfires have broken out across OklahomaEverything you need to know about ‘skimo’ the newest Olympic sportCalifornia avalanche is the deadliest in 45 yearsOklahoma fire risk continues after Gov. Kevin Stitt declares state of emergency for 3 counties
The Petroleum Alliance of Oklahoma has issued a warning to state lawmakers after the relocation of major energy companies, Devon Energy and Expand Energy, from Oklahoma to Texas, calling it a “wake-up call” for the state’s oil and gas industry.
>> Download the KOCO 5 app | Subscribe to KOCO 5’s YouTube channel | Sign up for KOCO 5’s Morning Newsletter
“Nobody likes to lose companies like Expand and like Devon. That’s not great for the state of Oklahoma,” said Brook Simmons, president of the Petroleum Alliance of Oklahoma.
The letter emphasized the importance of the oil and gas industry as Oklahoma’s biggest economic contributor and largest taxpayer, highlighting its fragility.
“The oil and gas industry remains the biggest economic contributor to Oklahoma, and the largest taxpayer, and it’s important that lawmakers realize it’s fragile. Companies can make decisions with their capital and they can leave,” Simmons said.
The alliance attributes the exodus to past legislation, including tax increases and regulatory changes, which have shifted drilling activity and investment elsewhere.
Senate President Pro Tem Lonnie Paxton expressed his support for the concerns raised in the letter, saying, “Kind of a gut punch, but something we needed to see.”
Paxton said he is already working on policy changes to address these issues.
“There’s things that I’m actually already working on, and I’ve told them I want to prioritize a couple of those, that make the regulatory side of this very, very difficult. One of them is a thing called PRSA. It’s called a production revenue standards act, it is extremely business-friendly,” he said.
Get the latest news stories of interest by clicking here.
Simmons further explained the challenges facing Oklahoma’s energy sector.
“Oklahoma has the least upside value in the nation with regard to its assets, the highest breakeven cost in the nation with regard to its assets, but also its lowest cost per location, which attracts bargain hunters. We want to attract that investment to Oklahoma, from Texas, Colorado, and every other state. So it was a reminder to lawmakers we need to do better moving forward,” Simmons said.
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