Energy policy in Oklahoma, 2009-2017

in Oklahoma

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Fracking in the U.S.
Energy policy in the U.S.
State fracking policy
State energy policy
Glossary of energy terms

Energy policy involves governmental actions affecting the production, distribution, and consumption of energy in a state. Energy policies are enacted and enforced at the local, state, and federal levels and may change over time. These policies include legislation, regulation, taxes, incentives for energy production or use, standards for energy efficiency, and more. Stakeholders include citizens, politicians, environmental groups, industry groups, and think tanks. A variety of factors can affect the feasibility of federal and state-level energy policies, such as available natural resources, geography, and consumer needs.

This article outlines state-level oil and gas regulations, renewable energy programs, oil and gas production, energy usage, energy and electricity prices, fuel taxes, and utilities in Oklahoma.

See the tabs below for further information:

1. Policy: This tab provides information about state regulations on energy production and policies related to oil and gas production, fracking, renewable energy generation, energy efficiency, and net metering.
2. Production: This tab provides information about total energy production by energy source in Oklahoma.
3. Usage: This tab presents information about electricity consumption by energy source.
4. Prices and taxes: This tab presents information about average energy and electricity prices, per capita spending on energy, and fuel taxes.
5. Utilities: This tab presents information about public and private utilities, electricity markets, the types of utilities in Oklahoma, and the electric reliability organizations in Oklahoma.
6. Background: This tab provides information about the types of nonrenewable and renewable energy sources produced and used in the United States, an energy profile of Oklahoma, a state profile of Oklahoma from the Almanac of American Politics (2016), and economic indicators in the state, such as median income.

Policy

State regulations

The Oklahoma Oil and Gas Division has regulatory authority over oil and natural gas operations in the state. State rules and regulations cover the drilling of all wells used for oil or gas exploration, the spacing of wells, permitting requirements for oil and gas operators, injection wells used to enhance oil and gas recovery or to dispose of wastewater, the cementing and plugging of wells, the underground storage of natural gas, the prevention of well blowout and leaks, well restoration, reporting requirements, and more. All Oklahoma rules and regulations related to oil and gas operations can be accessed here.^[1]

Fracking

See also: Fracking in Oklahoma

The Oil and Gas Division is responsible for regulating hydraulic fracturing (also known as fracking) in STATE. The division enforces regulations for the reporting and disclosure of the types of fluids used in fracking and at what volume, a description of each chemical additive used in fracking, the maximum amount of surface and injecting pressure used during the process, well safety, and other information considered necessary by the division for the regulation of fracking. More detailed information on oil and gas rules and regulations and regulations for fracking can be found in Title 165, Chapter 10 of the Oklahoma Register.^[2]

Renewable energy policies

States have implemented funding and financial incentive programs to subsidize or otherwise increase investment in renewable energy resources such as wind, solar, and hydroelectric power. These programs include renewable portfolio standards, grants, rebate programs, tax incentives, loans, performance-based incentives, and more. The aim of the policies generally involves reducing the cost of renewable energy production for consumers, reducing regulatory compliance costs, reducing investment risks involving renewable energy, and/or increasing the adoption of renewable energy sources by individuals and businesses.^[3]

Renewable Portfolio Standard

See also: Renewable Portfolio Standard

A Renewable Portfolio Standard (RPS), also known as a renewable electricity standard, is a mandate intended to increase the amount of renewable energy production and use. Under these standards, a utility company can be required by a state to have a certain percentage of its electricity come from certain renewable energy resources. In addition, states may give tax credits to utility companies to fulfill these requirements.^[4][5]

As of February 2017, Oklahoma was one of 20 states that did not have a mandatory Renewable Portfolio Standard.^[6]

Grant programs

States, nonprofit organizations, and/or private utilities may operate grant programs for renewable energy. These programs may include state or private funding for energy installation costs, research and development, infrastructure and business development, system testing, and renewable energy feasibility studies (studies that look into the potential for renewable energy use in specific areas). Grants can be provided with or without requiring a recipient to match the grant. Additional incentives, such as lower interest loans, may be included with a grant.^[3]

On April 17, 2017, Oklahoma Gov. Mary Fallin (R) signed a bill to repeal a state tax credit for wind energy. Wind power operators that begin generating energy from wind after July 1, 2017, are not eligible to claim the tax credit, which was previously set to expire in the year 2021. Wind energy accounted for approximately 6.4 percent of Oklahoma’s energy consumption in 2014, and wind power producers claimed approximately $113 million in 2014 under the credit. Fallin cited the credit’s role in growing the wind industry in the state and stated that ending the credit would help the state's finances. Senate Pro Tem Mike Schulz (R), a supporter of the bill, said that ending the credit would save state revenue to be used for public safety, healthcare, and public education. Virinder Singh, director of regulatory and legislative affairs for EDF Renewable Energy, a wind energy advocacy group, said that ending the credit early could harm operators that used the credit for new turbine projects under construction.^[7]

As of March 2015, Oklahoma was one of 26 states that did not have state-run, utility-run, or locally run grant programs for renewable energy. See the map below for grant programs by state.^[3]

Loan programs

Loan programs may be used to offer lower interest loans or other financing options to individuals and businesses to reduce the upfront costs of purchasing and installing renewable energy technologies. Loan programs may include programs that use payments from earlier borrowers to provide loans for new borrowers, programs in which building owners reduce their energy consumption to pay their upfront costs for renewable energy technologies, and programs that allow individuals with a higher debt-to-income ratio to purchase homes that use less energy, among others.^[3]

As of March 2015, Oklahoma was one of 36 states with a state-run loan program for renewable energy technologies. The Oklahoma Department of Commerce operates a loan/lease program for public and nonprofit K-12 schools as well as colleges and universities for renewable energy projects and energy efficiency measures. Two types of funding are provided to schools: Category I funding includes loans and leases for technical and energy audits, energy management plans, and professional services related to planning or designing renewable energy or energy efficiency projects. Category II funding includes loans and leases for the acquisition and installation of projects. Eligible renewable sources include solar energy, biomass, wind energy, and solar water and space heating.^[3][8][9]

A complete list of state, local, and private incentive, loan, grant, and assistance programs for renewable energy and energy efficiency in Oklahoma can be found here.

See the map below for renewable energy loan programs by state.

Energy efficiency regulations

As of February 2017, Oklahoma required all new residential and commercial buildings to meet energy efficiency standards. The Oklahoma State Legislature in 2009 established the Oklahoma Uniform Building Code Commission to review and adopt building standards. All residential buildings must meet energy efficiency standards for heating, ventilating, air conditioning, water heating, and lighting found in the 2009 International Residential Code. All commercial buildings must meet similar standards under the 2015 International Business Code.^[10]

Net metering

Net metering is a billing system in which customers who generate their own electricity, usually using renewable sources (such as solar panels) are able to sell their excess electricity back to the electric grid, which is an interconnected network that is used to deliver electricity. This requires electricity to be able to flow both to and from a consumer.^[11][12][13]

As of October 2016, Oklahoma was one of 41 states with a statewide net metering policy. All investor-owned utilities and state-regulated electric cooperatives must offer net metering to customers. For a complete list of net metering programs by state, click here.^[6][14][15]

Recent legislation

The following is a list of recent energy policy bills that have been introduced in or passed by the Oklahoma State Legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.

Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.

Ballot measures

Energy policy ballot measures

See also: Energy on the ballot and List of Oklahoma ballot measures

Ballotpedia has not covered any ballot measures relating to state and local energy policy in Oklahoma.

Utility policy ballot measures

See also: Local utility tax and fees on the ballot

Ballotpedia has not covered any ballot measures relating to local utility tax and fees in Oklahoma.

Production

The sections below include statistics on total energy production in Oklahoma, oil and natural gas production in Oklahoma, oil and gas production in Oklahoma over time (2004-2014), and oil and gas production on federal land, including the amount of federal land leased in Oklahoma for production.

Total energy production

The table below provides information regarding energy production in Oklahoma in British thermal units (Btu). A British thermal unit is used to measure the heat contained in different fuels. The U.S. Department of Energy defines a Btu as "the quantity of heat required to raise the temperature of 1 pound of liquid water by 1 degree Fahrenheit." Fuels are discussed in terms of Btu to compare fuels with different energy content and prices. For example, one gallon of gasoline equals 120,524 Btu.^[16]

Energy production, 2014 (in billion Btu)
State	Biomass	Coal	Crude oil	Nuclear energy	Natural gas	Renewable	Total*
Oklahoma		20,607	736,873		2,659,412	155,938	3,572,830
Arkansas		1,864	39,701	151,428	1,151,527	109,805	1,454,325
Kansas	72,366	1,474	287,158	89,512	317,377	185,129	953,016
Texas	43,833	576,803	6,702,967	410,907	9,379,513	526,915	17,640,938
U.S. average	38,759	404,181	307,301	160,980	585,731	187,132	1,684,085
*Total figures were computed by Ballotpedia. Source: U.S. Energy Information Administration, "Google Sheets API"

Nonrenewable energy production

The table below provides information regarding nonrenewable energy production in Oklahoma. For coal data, the phrase productive capacity refers to the maximum amount of coal that could be expected to be produced in 2014. The natural gas and crude oil production data refer to the amounts of natural gas and crude oil produced in December 2014 and April 2016, respectively.^[17][18]

Nonrenewable energy production
State	Coal, productive capacity (short tons)	Natural gas (million cubic feet)	Crude oil (thousand barrels)
Date	2014	December 2014	April 2016
Oklahoma	1,200,000	186,660	12,810
Arkansas	240,000	93,526	438
Kansas	64,573	22,380	3,104
Texas	45,823,585	653,385	96,908
U.S. average	24,874,314	43,350	4,388
Source: U.S. Energy Information Administration, "Google Sheets API"

Oil and gas production (2004-2014)

Note: This section provides information about oil and gas production on private and state-owned lands. Information on oil and gas production on federal lands is accessible here.

The graph and table below provide information about crude oil production in Oklahoma. Information from select surrounding states is provided for comparative purposes.^[19]

Crude oil production in Oklahoma and select surrounding states, in thousand barrels
State	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	Percent of total 2014 production	2014 Rank
Oklahoma	63,977	61,262	64,236	63,951	67,357	66,637	68,909	76,433	92,988	113,610	124,253	3.91%	5
Arkansas	6,747	6,175	5,948	6,031	6,079	5,755	5,733	5,877	6,536	6,640	6,845	0.22%	19
Kansas	33,879	33,620	35,668	36,590	39,663	39,466	40,468	41,507	43,743	46,845	49,522	1.56%	10
Missouri	88	86	87	80	99	106	146	118	175	199	197	0.01%	29
United States	1,991,394	1,891,227	1,857,044	1,853,166	1,830,002	1,952,670	2,000,861	2,060,398	2,377,806	2,722,171	3,180,813	--	--
Source: U.S. Energy Information Administration, "Crude Oil Production" Note: The data above are field production data.

The graph and table below provide information about natural gas production in Oklahoma. Information from select surrounding states is provided for comparative purposes.^[20]

Natural gas production in Oklahoma and select surrounding states, in million cubic feet (MMCF)
State	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	Percent of total 2013 production	2013 rank
Oklahoma	1,558,155	1,655,769	1,639,310	1,688,985	1,783,682	1,886,710	1,901,556	1,827,328	1,888,870	2,023,461	2,143,999	7.15%	5
Arkansas	169,953	187,310	190,774	270,744	270,414	447,082	680,613	927,479	1,076,757	1,146,168	1,139,654	3.80%	9
Kansas	420,027	398,197	378,250	372,029	366,859	375,314	355,394	325,591	309,952	296,299	292,467	0.97%	14
Missouri	0	0	0	0	0	0	0	0	0	0	0	0.0%	N/A
United States	24,118,978	23,969,678	23,456,822	23,535,018	24,663,656	25,636,257	26,056,893	26,816,085	28,479,026	29,542,313	30,005,254	--	--
Source: U.S. Energy Information Administration, "Natural Gas Gross Withdrawals and Production" The data presented above are gross withdrawals in million cubic feet (MMCF). Production data for 2014 were estimated for some, but not all, states; "--" indicates data were not available.

Oil and gas production on federal land

See also: Oil and natural gas extraction on federal land

The federal government leases federally managed land to private individuals and companies for energy development, including crude oil and natural gas drilling, solar energy development, and geothermal energy development. Approximately 166 million acres of federal land were available to be leased for energy development as of December 2014. The U.S. Bureau of Land Management (BLM) is responsible for regulating oil and gas drilling on federal lands in the United States.^[21][22]

The table below provides information about oil and natural gas production on federal lands in Oklahoma in 2014. Information from select surrounding states is provided for comparison.^[23][24]

Oil and natural gas production on federal land, 2014
State	Oil production (in thousands of barrels)	Natural gas production (in million cubic feet)
Oklahoma	343	12,504
Arkansas		10,349
Kansas	190	4,038
Texas	273	38,250
U.S. average	2,976.06	49,996.92
Source: Office of Natural Resource Revenue, "Statistical Information"

Land leased

Private oil and natural gas companies apply for leases from the U.S. Bureau of Land Management (BLM) to develop energy resources on federal lands. After a lease is approved, the company must submit information to the BLM about how it will conduct its drilling and production operations. The BLM also inspects a company’s operations during production.^[25]

The table below provides information about oil and gas producing leases and acres on federal lands in Oklahoma from 2013 to 2015. Information from select surrounding states is provided for comparison.

Oil and gas producing leases and acres on federal land by state, 2013-2015
State	FY 2015	FY 2014	FY 2013
Producing leases	Producing acres	Producing leases	Producing acres	Producing leases	Producing acres
Oklahoma	957	147,341	938	141,496	912	134,511
Arkansas	245	120,927	246	121,558	248	124,819
Kansas	437	109,392	438	109,552	439	109,432
Texas	278	166,227	272	162,102	253	156,590
U.S. average	485	257,505	483	258,996	480	262,870
Source: U.S. Bureau of Land Management, "Oil and Gas Statistics"

Energy usage

The section below includes statistics on electricity consumption in the state by energy type (in 2014).

Consumption

The table below provides information about energy consumption by source in Oklahoma in 2014. Information from select surrounding states is provided for comparison.^[17]

Energy consumption in Oklahoma, 2014 (in billion Btu)
State	Coal	Crude oil and petroleum products	Natural gas	Nuclear energy	Solar	Wind	Geothermal	Hydropower	Wood and wood waste	Biomass
Oklahoma	336,080	556,153	665,799	0	62	113,519	24	13,585	28,748	42,870
Arkansas	339,214	338,026	274,767	151,428	148	0	808	25,104	83,744	95,963
Kansas	316,572	368,066	289,697	89,512	67	103,135	974	154	8,433	45,862
Texas	1,585,961	6,054,161	4,219,128	410,907	5,550	380,449	2,478	3,670	90,934	214,603
U.S. average	359,931	716,746	544,353	172,585	20,739	531,323	16,555	61,397	65,345	101,581
Source: U.S. Energy Information Administration, "Google Sheets API"

Prices and taxes

The sections below include information on energy prices and spending in Oklahoma, fuel taxes and state taxes in Oklahoma and in neighboring states, and an overview of the federal tax on gasoline.

Energy prices

The price of electricity is affected by supply and demand. The supply of electricity is affected by fuel prices, environmental and energy regulations, power plant capacity, weather, and other factors. Demand for electricity also affects the price. Because electricity cannot be stored for long periods of time, it must be produced and used when it is needed. As demand for electricity increases, the price also generally increases.^[26][27]

The table below provides information about energy prices in Oklahoma as of April 2016. Information from select surrounding states is provided for comparison.^[17]

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

Energy prices in Oklahoma
State	Natural gas Dollars per thousand cubic foot	Electricity Cents per kilowatthour
Date	April 2016	April 2016
Oklahoma	$10.97	7.3
Arkansas	$10.89	7.6
Kansas	$11.41	10.2
Texas	$11.66	7.7
U.S. average	$11.20	10.41
Source: U.S. Energy Information Administration, "Google Sheets API"

Electricity prices can vary depending on the type of consumer; consumer categories include residential, commercial, industrial, and in some cases, transportation. The rate-making process is both political and economic. The table below presents information about electricity prices by consumer type in Oklahoma in April 2016. Information from select surrounding states is provided for comparison.

Electricity prices in Oklahoma by sector (in cents per kilowatthour)
State	Commercial	Industrial	Residential	Transportation	Average (all sectors)
Date	April 2016	April 2016	April 2016	April 2016	April 2016
Oklahoma	6.9	4.4	10.9	0.0	7.4
Arkansas	8.0	5.3	10.0	10.5	8.5
Kansas	10.3	7.4	13.5	0.0	10.4
Texas	7.4	4.8	11.3	5.3	7.2
U.S. average	10.48	7.45	13.05	10.47	10.36
Source: U.S. Energy Information Administration, "Google Sheets API"

Energy spending

The table below provides information about energy spending in Oklahoma as of 2014. Information from select surrounding states is provided for comparison.

Energy spending in Oklahoma, 2014 (in millions of dollar except per capita spending)
State	Petroleum	Coal	Natural gas	Nuclear	Per capita spending
Oklahoma	$13,053	$680	$3,454	$	$5,283
Arkansas	$8,539	$821	$1,849	$126	$4,680
Kansas	$8,945	$569	$1,755	$58	$5,046
Texas	$117,944	$3,214	$16,884	$298	$6,025
U.S. average	$17,267	$1,322	$3,786	$574	$5,304
Source: U.S. Energy Information Administration, "Google Sheets API"

Fuel taxes

Revenue collected by federal, state, and local governments from fuel taxes is usually used to fund transportation infrastructure such as roads and bridges. Some states may charge an excise tax based on how much gas or diesel is purchased. Some states may charge retail tax based on the average price of gas over a certain period. Additionally, some states may charge an environmental tax to be used for environmental projects. The Tax Foundation, which created the map to the right, used data from the American Petroleum Institute, which converted each state's different tax structure into cents per gallon to compare each state's gas taxes. In 2016, gas taxes accounted for 23 percent of the price of gasoline. Crude oil accounted for 40 percent of the price of gasoline, refining accounted for 24 percent of the price, and distribution and marketing accounted for 13 percent of the remainder.^[28][29]

The table below provides information about state fuel taxes by type (excluding the federal gas taxes) in Oklahoma as of January 2016. As of January 2016, Oklahoma levied a 17 cent state gasoline tax and a 14 cent state diesel tax. Oklahoma ranked 47th highest in total gasoline taxes (federal and state) and 49th highest in total diesel fuel taxes as of January 2016.^[30][31]

State motor fuel taxes in cents per gallon, January 2016
State	State gasoline tax	Total gasoline tax	Rank	State diesel tax	Total diesel tax	Rank
Oklahoma	17.0	35.4	47	14.0	38.4	49
Arkansas	21.8	40.2	38	22.8	47.2	38
Kansas	24.0	42.4	31	26.0	50.4	31
Texas	20.0	38.4	42	20.0	44.4	43
U.S. average	30.29	48.69	N/A	30.01	54.41	N/A
Source: American Petroleum Institute, "Motor Fuel Taxes"

Federal tax

The first federal tax on gasoline was proposed by Secretary of the Treasury Ogden L. Mills under President Herbert Hoover (R) as a revenue generating measure to balance the budget during the Great Depression. A 1-cent tax per gallon of imported gasoline and fuel oil was passed as part of the Revenue Act of 1932 and signed by President Franklin D. Roosevelt (D). The 1-cent tax continued until 1951 when the tax was increased to 2 cents in part to raise revenue during the Korean War. In 1956, the tax was raised to 3 cents to fund the Interstate Highway System. During this time, the Highway Trust Fund was created as a means to fund highway construction. Since 1956, there have been increases to the tax. As of April 2016, the gas tax was last raised by President Bill Clinton (D) in 1993 to 18.4 cents per gallon.^[32]

Utilities

The sections below include general information on utilities, an overview of utilities and electricity markets, information on the types of utilities in Oklahoma, an overview of electricity reliability organizations (EROs), and the EROs that oversee electricity in Oklahoma.

Background

Utilities are firms that own and/or operate facilities to generate, transmit, and/or distribute electricity, gas, and/or water to the public. Electric utilities are commercial entities that own and operate facilities to generate, transmit, and distribute electricity to the public and/or the industrial sector. State and local regulators oversee transmission and distribution charges. Local utilities read electric meters and bill individuals or businesses, generally on a monthly basis.^[33][34]

Utilities are defined differently in each state and in federal legislation. Two general types of utilities are private and public utilities. Private utilities, commonly known as investor-owned utilities, provide stocks to investors and sell bonds. These utilities are regulated by state regulatory agencies. State agencies are also responsible for setting retail rates charged by investor-owned utilities, overseeing utility infrastructure, and ensuring that investor-owned utilities respond to customer service demands. Public utilities include government or municipally owned utilities. Another type of utility is an electric cooperative. Cooperatives are nonprofit businesses voluntarily owned and managed by the individuals and businesses that use their services. They are commonly used in rural areas that do not have access to a larger state or region-wide electric grid.^[34]

Electricity markets

Electricity markets in each state are defined as regulated or deregulated. A regulated market includes utilities that own and manage the power plants that generate the electricity, the electricity transmission lines, and the distribution equipment (such as wires and electric poles). In addition, the utilities rates are approved and regulated by local and state agencies. A deregulated market requires utilities to divest ownership in the generation and transmission of electricity. In this market, utilities oversee the interconnection from a meter at a household or business to the power grid and is responsible for billing ratepayers.^[35][36]

Depending on the state and/or area, public utilities may provide most or all energy services to homes and businesses, or a state may allow other private electricity providers to transmit and distribute electricity in addition to other utilities. For example, one type of private provider is a retail energy provider, which sells electricity in areas with retail competition. The provider purchases wholesale electricity and the delivery services (such as transmission lines) and can price electricity to particular consumers.^[35][36]

As of February 2017, Oklahoma was one of 40 states with a regulated electricity market. The Oklahoma Corporation Commission regulates rates and service reliability for the state's three investor-owned utilities—Oklahoma Gas and Electric, the Public Service Company of Oklahoma, and Empire District Electric. The commission does not oversee electric utilities operated by a governmental entity. In addition, state law allows electric cooperatives to opt out of state rate regulation, though electric cooperatives may choose to be regulated for service reliability even if the commission does not set their rates. As of February 2017, five electric cooperatives had rates regulated by the commission.^[37]

Electric reliability organizations

The Energy Policy Act of 2005 required the Federal Energy Regulatory Commission (FERC) to designate an electric reliability organization (ERO) for the United States. An ERO oversees the reliability of a nation's electric grid. In 2006, FERC granted authority to the North American Electric Reliability Corporation (NERC) to develop and enforce grid reliability standards for the United States. NERC, a self-regulated nonprofit corporation, is authorized to enforce grid reliability standards for all users, owners, and operators of the U.S. electrical system.^[38]

NERC works with eight regional reliability organizations to oversee the U.S. electrical system. These organizations, known as regional entities, are composed of officials from investor-owned utilities, federal power agencies, electric cooperatives, and state and municipal utilities. Regional entities enforce NERC and regional reliability standards. Further, they forecast electricity demand and coordinate operations with other regional entities.^[39]

Oklahoma EROs

As of February 2017, the Southwest Power Pool (SPP) was the NERC-affiliated corporation that oversees electricity in Oklahoma. The SPP conducts studies and assessments of the electricity grid, conducts long-term planning, and develops regional standards for electricity reliability.^[40]

Background

The sections below include an overview of the types of renewable and nonrenewable energy produced and consumed in the United States, an energy profile of Oklahoma (from the U.S. Energy Information Administration), a general profile of Oklahoma (from the 2016 edition of the Almanac of American Politics), and various economic indicators in Oklahoma.

Background on energy resources

Nonrenewable energy sources, such as coal, oil, and natural gas (sometimes known as fossil fuels), and renewable sources, such as hydropower, wind, biofuels, and solar energy, are produced in each state, though at different levels depending on a state's geography, energy consumption, and the raw materials available in a particular state. For example, several states do not have coal, oil, and/or natural gas resources. States that lack these resources import these fuels.^[41]

According to the U.S. Department of Energy, oil, coal, and natural gas comprise the majority of the resources used to generate power in the United States. In 2014, the top five energy-producing states were the top five fossil fuel-producing states—Texas, Wyoming, Pennsylvania, Louisiana, and West Virginia. These states' fossil fuel production accounted for approximately 42 percent of U.S. energy production in 2014. States with fewer coal, oil, and natural gas resources generally consume less energy. In 2014, the bottom five energy-producing states—Rhode Island, Delaware, Hawaii, Nevada, and New Hampshire—produced 0.2 percent of U.S. energy and consumed approximately 2 percent of total U.S. energy.^[41]

The production of biofuels (liquid fuels created from plant or plant-derived materials) is generally concentrated in the Midwest—states such as Illinois, Iowa, Nebraska, and South Dakota) given the region's agricultural production of crops such as corn, which is used to make ethanol, a biofuel that can be blended with gasoline and used as a transportation fuel.^[41]

Other renewable sources are used to generate power in the states include hydroelectric power, which accounted for about half of all renewable energy production in the United States in 2014.^[41]

Oklahoma energy profile

As of 2014, Oklahoma contained approximately 4 percent of total U.S. proved petroleum reserves. In addition, Oklahoma was one of the top five oil-producing states and accounted for between 3 percent and 5 percent of total U.S. crude oil production. In 2005, crude oil production reached its lowest in the state since 1913. In 2015, production was more than 2.5 times larger than production in 2005. Further, proven petroleum reserves in the state doubled from 2007 to 2015.^[17]

As of 2014, Oklahoma had 14 of the 100 largest U.S. natural gas fields. The state had more than 34 trillion cubic feet in proved natural gas reserves. In 2015, natural gas production in Oklahoma reached 2.5 trillion cub feet of natural gas.^[17]

As of 2015, Oklahoma had coal mining. That year, the state had four underground coal mines and one surface mine. Nearly all coal consumed in Oklahoma as of 2015 was delivered to the state from Wyoming primarily by railroad.^[17]

As of 2015, the largest power plants in Oklahoma were either coal- or natural gas-fired; together, they accounted for approximately 75 percent of Oklahoma's electricity generation. Total electricity consumption per capita in the state as of 2015 was higher than the national median.^[17]

Around 20 percent of the state's net electricity generation as of 2015 came from renewable energy sources, primarily from wind energy. In 2015, Oklahoma was the third-largest producer of electricity from wind energy. Other renewable sources included hydroelectric power facilities and biomass.^[17]

State profile

Demographic data for Oklahoma
	Oklahoma	U.S.
Total population:	3,907,414	316,515,021
Land area (sq mi):	68,595	3,531,905
Race and ethnicity**
White:	73.1%	73.6%
Black/African American:	7.2%	12.6%
Asian:	1.9%	5.1%
Native American:	7.3%	0.8%
Pacific Islander:	0.1%	0.2%
Two or more:	7.8%	3%
Hispanic/Latino:	9.6%	17.1%
Education
High school graduation rate:	86.9%	86.7%
College graduation rate:	24.1%	29.8%
Income
Median household income:	$46,879	$53,889
Persons below poverty level:	19.7%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Oklahoma. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Oklahoma

Oklahoma voted Republican in all seven presidential elections between 2000 and 2024.

More Oklahoma coverage on Ballotpedia

• Elections in Oklahoma
• United States congressional delegations from Oklahoma
• Public policy in Oklahoma
• Endorsers in Oklahoma
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• More...

Economic indicators

See also: Economic indicators by state

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.^[42][43][44]

In 2013, most Oklahoma residents earned incomes above 200 percent of the federal poverty level, 62 percent. The state had a median annual household income of $47,282. Oklahoma's unemployment rate in September 2014 was 4.7 percent, lowest among its neighboring states.^{[45][46][47][48]}

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state
State	Distribution of population by FPL* (2013)	Median annual income (2011-2013)	Unemployment rate	Total GSP (2013)†
Under 100%	100-199%	200-399%	400%+	Sept. 2013	Sept. 2014
Oklahoma	14%	24%	31%	31%	$47,282	5.6%	4.7%	$182,086
Arkansas	17%	26%	33%	24%	$40,877	7.7%	6.2%	$124,218
Kansas	13%	18%	34%	34%	$49,804	5.3%	4.8%	$144,062
Missouri	14%	17%	32%	38%	$49,290	6.4%	6.3%	$276,345
United States	15%	19%	30%	36%	$52,047	7.2%	5.9%	$16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

See also

• Energy policy in the U.S.
• Fracking in Oklahoma
• Net metering
• Renewable Portfolio Standard
• Environmental policy in Oklahoma

Recent news

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Footnotes

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