While Oklahoma may be famous for its sweeping plains, beneath them lies an economic powerhouse, with the state's crude oil production surging to a record 899,000 barrels per day in 2023, fueling billions for the state budget and supporting one in every eight jobs statewide.
Key Takeaways
- In 2023, Oklahoma's crude oil production averaged 833,000 barrels per day, making it the 4th largest oil-producing state in the U.S.
- Oklahoma produced 304 million barrels of crude oil in the first half of 2023, up 12% from the previous year
- The SCOOP/STACK plays in Oklahoma accounted for over 60% of the state's total crude oil production in 2022
- In 2023, Oklahoma's natural gas production totaled 7.4 trillion cubic feet, ranking 5th in the U.S.
- The Haynesville Shale extension into Oklahoma produced 1.2 billion cubic feet per day of natural gas in 2023
- Oklahoma's marketed natural gas production grew 8% year-over-year to 6.9 Tcf in 2022
- Oklahoma employed 285,000 workers directly and indirectly in the oil and gas sector in 2022
- The average annual wage in Oklahoma's oil and gas extraction industry was $112,500 in 2023, 2.5 times the state average
- Over 45,000 jobs were in oil and gas extraction in Oklahoma as of 2023
- The oil and natural gas industry generated $14.2 billion in personal income for Oklahomans in 2022
- Energy sector taxes and royalties contributed $1.8 billion to Oklahoma's state budget in FY2023
- Oklahoma's energy industry paid $4.5 billion in property taxes in 2022, 40% of statewide total
- Oklahoma had 172 active oil and gas rigs drilling in Q4 2023, ranking 4th nationally
- The state has over 500,000 active oil and gas wells as of 2023
- Oklahoma's pipeline mileage totals 45,000 miles for natural gas gathering lines
Oklahoma's energy industry is booming with strong production and major economic contributions statewide.
Economic Impact
1The oil and natural gas industry generated $14.2 billion in personal income for Oklahomans in 2022
Verified2Energy sector taxes and royalties contributed $1.8 billion to Oklahoma's state budget in FY2023
Verified3Oklahoma's energy industry paid $4.5 billion in property taxes in 2022, 40% of statewide total
Verified4The industry's economic output was $70 billion in 2022, 18% of Oklahoma's GDP
Directional5Energy exports from Oklahoma totaled $25 billion in natural gas and oil products in 2023
Single source6OERB invested $120 million in roads and bridges from energy royalties since 1993
Verified7The multiplier effect of energy spending supported $42 billion in indirect economic activity in 2022
Verified8Oklahoma households saved $1,200 on average in energy costs due to local production in 2023
Verified9Energy firms invested $15 billion in capital expenditures in Oklahoma in 2022
Directional10Severance taxes from oil and gas funded 25% of Oklahoma public schools in 2023, totaling $900 million
Single source11In 2022, the energy industry contributed $28 billion to Oklahoma's GDP, representing 24% of the total state GDP
Verified12Energy royalties distributed $1.1 billion to county governments in Oklahoma in FY2022
Verified13The sector induced $8.7 billion in supplier and payroll spending in 2022
Verified14Energy industry severance tax rate: 5% on oil, 7% on gas in OK 2023
Directional15$2.3 billion in sales taxes from energy purchases in 2022 OK
Single source16OERB funded $145 million in water projects from royalties 2023
Verified17Tourism boost from energy: $500 million indirect in 2022
VerifiedEconomic Impact Interpretation
While Oklahoma's energy industry clearly fuels everything from state coffers to local roads, it's best to remember that this $70 billion economic engine is less a golden goose and more the entire farm—paying the mortgages, funding the schools, and keeping the lights on for just about everyone.
Employment
1Oklahoma employed 285,000 workers directly and indirectly in the oil and gas sector in 2022
Verified2The average annual wage in Oklahoma's oil and gas extraction industry was $112,500 in 2023, 2.5 times the state average
Verified3Over 45,000 jobs were in oil and gas extraction in Oklahoma as of 2023
Verified4Oklahoma's energy sector supported 1 in 8 jobs statewide in 2022, totaling 312,000 positions
Directional512,500 new jobs were added in Oklahoma's energy workforce from 2021 to 2023
Single source6Women comprised 18% of Oklahoma's oil and gas workforce in 2023, up from 12% in 2018
Verified7There were 5,200 drilling rig workers employed in Oklahoma in Q4 2023
Verified8Oklahoma trained 3,500 energy workers through OERB programs in 2022
Verified9Midstream sector employed 67,000 in Oklahoma, handling pipelines and processing
Directional10Upstream exploration jobs numbered 28,000 in Oklahoma's energy industry in 2023
Single source11Oklahoma's oil and gas supported 140,000 indirect jobs in manufacturing and services in 2023
Verified12Average tenure for oilfield workers in Oklahoma is 8.5 years, with 65% holding vocational training
Verified1322,000 engineers and geoscientists work in Oklahoma's energy sector as of 2023
Verified14Energy industry turnover rate in Oklahoma was 18% in 2022, lower than national average
Directional15OERB scholarships awarded to 2,800 students pursuing energy-related degrees in 2023
Single source16Midstream jobs grew 12% to 72,000 in Oklahoma from 2020-2023
Verified179,500 truck drivers support energy logistics in Oklahoma annually
Verified1865,000 jobs in renewables and wind in OK 2023
Verified19HSE training completed by 15,000 OK energy workers yearly
Directional20Diversity: 25% minority workforce in OK energy 2023
Single source214,200 apprenticeships in energy trades OK 2022
VerifiedEmployment Interpretation
Oklahoma's oil and gas sector is a high-paying, job-creating titan—funding one in eight state paychecks, employing everyone from 22,000 brainy engineers to 9,500 road-weary truckers—yet it’s shrewdly evolving, steadily adding women, diversifying into renewables, and betting on 2,800 students to help pry its future from the ground.
Infrastructure
1Oklahoma had 172 active oil and gas rigs drilling in Q4 2023, ranking 4th nationally
Verified2The state has over 500,000 active oil and gas wells as of 2023
Verified3Oklahoma's pipeline mileage totals 45,000 miles for natural gas gathering lines
Verified425 natural gas processing plants operate in Oklahoma with capacity of 8 Bcf/d
Directional5Cushing, Oklahoma, hub stored 70 million barrels of crude oil in 2023 peak
Single source6Oklahoma wind capacity reached 10,243 MW in 2023, 42% of state electricity
Verified71,200 miles of crude oil pipelines originate in Oklahoma
Verified845 compression stations support natural gas transport in Oklahoma
Verified9Oklahoma ranks 3rd in U.S. wind energy production with 40 TWh annually in 2023
Directional10Oklahoma wind farms generated 11,000 GWh in Q1 2024
Single source111,100 oil storage tanks with capacity 50 million barrels in Cushing OK 2023
Verified12Plains All American pipeline moves 600,000 bpd from OK to Cushing
Verified13Oklahoma has 18 refineries processing 700,000 bpd capacity
Verified14350,000 miles of distribution pipelines for gas in OK homes/businesses
Directional15TransCanada Keystone XL bypassed OK but local lines carry 800k bpd
Single source16Wind turbines: 4,500 units operating in Oklahoma 2023
VerifiedInfrastructure Interpretation
Oklahoma may be quietly anchoring the nation's energy past with its web of pipelines and vast oil stores, but it's also loudly harnessing the future with enough wind turbines to blow its own legacy a serious, and surprisingly breezy, kiss.
Natural Gas Production
1In 2023, Oklahoma's natural gas production totaled 7.4 trillion cubic feet, ranking 5th in the U.S.
Verified2The Haynesville Shale extension into Oklahoma produced 1.2 billion cubic feet per day of natural gas in 2023
Verified3Oklahoma's marketed natural gas production grew 8% year-over-year to 6.9 Tcf in 2022
Verified4Canadian County produced 850 million cubic feet per day of natural gas in Q3 2023, leading Oklahoma counties
Directional5STACK play natural gas output reached 3.5 Tcf annually in 2023
Single source6Oklahoma's natural gas proved reserves were 34 trillion cubic feet at year-end 2022, 4th in the nation
Verified7Average natural gas well in SCOOP produced 15 million cubic feet per day initially in 2023
Verified8Oklahoma flared 2.5% of its natural gas production in 2022, totaling 180 billion cubic feet
Verified9Natural gas processing plants in Oklahoma handled 7.1 Tcf in 2022
Directional10Oklahoma exported 1.2 Tcf of natural gas via pipelines to other states in 2023
Single source11Oklahoma natural gas gross withdrawals: 8.1 Tcf in 2022
Verified12SCOOP play gas production: 2.8 Tcf/year in 2023
Verified13Venting of natural gas in OK: 45 Bcf in 2022
Verified14Oklahoma LNG export potential: 1 Bcf/d from new facilities planned 2024-2028
Directional15Natural gas rig count averaged 120 in Oklahoma 2023
Single source16Associated gas from oil wells: 40% of OK total gas production 2023
Verified17Caddo County gas production: 650 MMcf/d in 2023
VerifiedNatural Gas Production Interpretation
Oklahoma is quietly flexing as the nation's dependable gas station, sitting on a colossal reserve and pumping out enough energy to power half the country, all while managing to keep most of its product in the pipes instead of the atmosphere.
Oil Production
1In 2023, Oklahoma's crude oil production averaged 833,000 barrels per day, making it the 4th largest oil-producing state in the U.S.
Verified2Oklahoma produced 304 million barrels of crude oil in the first half of 2023, up 12% from the previous year
Verified3The SCOOP/STACK plays in Oklahoma accounted for over 60% of the state's total crude oil production in 2022
Verified4Oklahoma's monthly crude oil production reached a record 899,000 barrels per day in October 2023
Directional5From 2019 to 2023, Oklahoma's crude oil output increased by 45%, driven by horizontal drilling in the Anadarko Basin
Single source6In 2022, Oklahoma's crude oil proved reserves stood at 1.1 billion barrels, ranking 6th nationally
Verified7Grady County, Oklahoma, led the state with 147,000 barrels per day of crude oil production in 2023
Verified8Oklahoma's crude oil production contributed $12.5 billion to state GDP in 2022
Verified9The state's average crude oil well productivity in the Anadarko Basin was 1,200 barrels per day per well in 2023
Directional10Oklahoma drilled 1,200 new crude oil wells in 2023, a 15% increase from 2022
Single source11Oklahoma's crude oil production in Blaine County averaged 45,000 bpd in 2023
Verified12Kingfisher County produced 120,000 bpd of crude oil, second highest in state 2023
Verified13Anadarko Basin crude reserves estimated at 2.5 billion barrels recoverable in 2023
Verified14Oklahoma's API gravity average for crude oil is 40 degrees, suitable for refining
Directional1575% of Oklahoma crude oil is horizontally drilled with fracking
Single source16Monthly production in Woods County hit 35,000 bpd in Dec 2023
Verified17Statewide rigless completions for oil: 450 in 2023
Verified18Garfield County oil: 90k bpd 2023
Verified19Major County oil peak: 25k bpd Q4 2023
DirectionalOil Production Interpretation
While still comfortably settled in fourth place nationally, Oklahoma's oil industry, with a record-breaking surge of 45% since 2019 and over 60% of its crude gushing from the prolific SCOOP/STACK plays, is clearly not content to just sit on its, albeit substantial, 1.1 billion barrels of reserves.
Sources & References
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