Oil and natural gas operators in Oklahoma have led the way for soaring U.S. production levels by pioneering the technologies used in developing unconventional resources, a new report shows.
The report, conducted by IHS Markit and commissioned by the Independent Petroleum Association of America (IPAA), concludes that in Oklahoma alone, producers saw oil production grow by over 17 percent to almost 500,000 barrels per day (bbls/d) from 2016 to 2018, with production expected to reach 650,000 bbls/d by 2025.
This growth is thanks to Oklahoma companies embracing and deploying innovative technologies in order to make unconventional development more efficient. OIPA-OKOGA President Chad Warmington commented on the findings:
“These companies have pioneered the technologies and innovations that have made unconventional plays the backbone of current and future growth in oil and natural gas production and investment–trends that will continue through 2025 and beyond.”
This activity, driven by a number of Oklahoma companies, is not only supporting record levels of oil and natural gas production—it’s also providing significant economic benefits. Oklahoma producers:
- Increased capital expenditures by about $5 billion from 2016 to 2017, reaching $12.38 billion.
- Supported nearly 348,000 jobs in 2018.
- Provided over $1.77 billion in state and local tax revenue last year.
- Accounted for $37 billion in added economic value in 2018.
Warmington highlighted the important role of OIPA-OKOGA members – to the state’s economy:
“The production and capital spending activities of Oklahoma’s oil and natural gas producers stimulate significant contributions to the U.S. economy, and this report demonstrates that the competition for capital between resource basins is fierce. Oklahoma must remain competitive from a tax and regulatory standpoint to attract these limited capital resources.”