The same week that the Petroleum Alliance of Oklahoma sent a “wake up” letter to state legislative leaders about doing more to protect and improve Oklahoma’s oil and gas industry, Gov. Kevin Stitt had something of a similar message. It was a message that despite losses of two major oil and gas companies moving headquarters out of state, Oklahoma is still winning.
The message was called “Governor Stitt’s Push to Keep Oklahoma Competitive.” In it, he said his administration had focused on one goal—that of making Oklahoma the most business-friendly state in America.”
He cited “winning” aspects of accomplishing the “business-friendly” goal including being a top state for entrepreneurs. WalletHub’s 2026 “Best States to Start a Business” ranked Oklahoma #4. The governor pointed to the low corporate tax rate of 4% in Oklahoma, tied among the lowest state corporate income tax rates in the nation. Oklahoma, he said is also ranked in the top 10 nationally for positive net migration.
Energy taxes and Texas comparison
But under his headline of “Where Policy Still Holds Oklahoma Back,” Gov. Stitt cited “Energy Taxes and the Texas Comparison.”
Here’s what he wrote, taking aim at the state’s gross production tax.
“Our energy sector is a cornerstone of Oklahoma’s economy, and it competes head-to-head with Texas. Texas applies a 4.6% oil production (severance) tax rate, a figure that’s frequently used in comparisons by companies and site selectors. Oklahoma’s gross production tax is often cited around 7%, and those headline numbers can tilt long-term capital investment when everything else is close.”
Expansions and capital investment
But the governor also said there is “proof” that the state is winning, such as the expansions announced in January by ten companies in the state. He pointed to Southwest Electric Co. in Oklahoma City which had a $27 million reinvestment in its base and added 130 new jobs to expand transformer production.
Additional expansions: Arrowhead Winch (Broken Arrow/Okmulgee); McKesson (Moore); Fabsco Fin-Air (Sapulpa); Global Machine (Muskogee); Indaco Metals (Shawnee); United Dynamics (Shawnee/OKC); United Mechanical (OKC); Google North America (Sand Springs); Odyssey Health Care (Ardmore). These are the only companies that have made public announcements and does not account for the organic growth happening across the state.
He didn’t mention or identify Devon Energy and Expand Energy and their recent decisions to relocate headquarters in Houston, Texas. But there was a suggestion.
Gov. Stitt said while “legacy companies may be reevaluating their footprints” new and existing Oklahoma companies are doubling down, investing, and expanding in the state.
Below is his entire message.
Governor Stitt’s Push to Keep Oklahoma Competitive
Message from Governor Stitt
My administration has been focused on one goal: making Oklahoma the most business-friendly state in America. We are attracting new companies, growing jobs, and earning national recognition, but outdated policies in taxes, litigation, and regulation still make it easier for some large employers to choose other states when they make big, long-term decisions.
Where Oklahoma Is Winning
Top state for entrepreneurs: Oklahoma ranks #4 on WalletHub’s 2026 “Best States to Start a Business,” reflecting our favorable costs and startup environment.
Low corporate tax rate: At just 4%, Oklahoma is tied among the lowest state corporate income tax rates in the nation.
People are moving here: Oklahoma has ranked in the top 10 nationally for positive net migration in recent years, with tens of thousands of new residents choosing our state.
In 2025 Oklahoma had a record $14.7 billion in new capital investment.
Where Policy Still Holds Oklahoma Back
Personal and Corporate Income Tax
The Governor has called for eliminating Oklahoma’s personal and corporate income taxes to keep the state competitive with states like Texas, which has no state personal income tax and markets that aggressively to employers and talent. While progress has been made cutting taxes, the state has not yet gone far enough to match what competitors are offering.
Modern Business Courts
Texas has taken steps to create and expand a specialized Texas Business Court system to handle complex commercial cases quickly and consistently, something large corporations look for when deciding where to invest. Oklahoma needs a modern, specialized business-court framework so companies know they can resolve high-stakes business disputes fairly, efficiently, and predictably.
Development Tools for Large-Scale Growth
Texas has become a national leader in “people-scale” development building entire communities around major employment centers with tools like master-planned districts and strong local financing mechanisms. Our regulatory framework in Oklahoma is more archaic, which makes it harder to rapidly accommodate large net migration and major greenfield projects that bring jobs, housing, and infrastructure together.
Tort Climate and Lawfare Concerns
Oklahoma’s litigation environment is often viewed as costly and unpredictable, which discourages some employers from expanding here. High plaintiff awards and an aggressive culture of litigation can function like a hidden tax on growth. At the same time, when industries feel they are being targeted through “lawfare,” it creates uncertainty and dampens new investment.
Energy Taxes and the Texas Comparison
Our energy sector is a cornerstone of Oklahoma’s economy, and it competes head-to-head with Texas. Texas applies a 4.6% oil production (severance) tax rate, a figure that’s frequently used in comparisons by companies and site selectors. Oklahoma’s gross production tax is often cited around 7%, and those headline numbers can tilt long-term capital investment when everything else is close.
Proof That Oklahoma Is Still Winning Deals
Despite these challenges, companies are choosing to grow in Oklahoma, and they are partnering directly with Stitt’s administration and the Department of Commerce to do it.
In January alone, ten companies announced expansions in Oklahoma, eight of them partnering with the state through the Public Private Partnership (P3) program (per Commerce’s internal reporting).
Southwest Electric Co. (Oklahoma City): $27 million reinvestment in its Oklahoma City base and 130 new jobs to expand transformer production and meet global demand.
Additional expansions: Arrowhead Winch (Broken Arrow/Okmulgee); McKesson (Moore); Fabsco Fin-Air (Sapulpa); Global Machine (Muskogee); Indaco Metals (Shawnee); United Dynamics (Shawnee/OKC); United Mechanical (OKC); Google North America (Sand Springs); Odyssey Health Care (Ardmore). These are the only companies that have made public announcements and does not account for the organic growth happening across the state.
The Governor’s Bottom Line
Legacy companies may be reevaluating their footprints, but new and existing Oklahoma companies are doubling down, investing, and expanding in our state. The Governor’s administration has done everything within the executive branch to make Oklahoma competitive; now, by tackling the remaining roadblocks tax structure, litigation climate, modern development tools, and energy competitiveness.