Oklahoma’s economy is almost entirely based on oil production. In fact nearly 15% of all our state income comes from oil and gas production. That is no small number, considering the figure also considers tax dollars and all other industry.
Oil production is the crown jewel that sits at what was once a great Oklahoman energy empire, followed by Natural Gas, and more recently, wind power.
But being so involved in oil production is definitely a two-edged sword. Dependency on oil production creates a problem when the global economy has increased supply of oil. But diving into the global economy and trade is a discussion for another time. I would like to discuss the effects of the oil industry’s dominance over state affairs, and what I think we can do to remedy this situation.
Oil prices have fallen to less than 30% of that last year, which has wreaked havoc on our state economy. Layoffs at Chesapeake and Devon, homes for sale across the Metro, and those cheap gas prices we all love so much are just a few byproducts and the oil industry’s decline.
Oklahoma loses about 200 million dollars per year in breaks and subsidies to oil companies. That’s quite a lot of money to pay for companies that are inconsistent, dependent on the global trade market, and are indirectly causing the earthquakes we’ve been receiving.
Let’s face it. Paying oil companies to stay here isn’t working anymore. In an age where wind power and solar energy are at the forefront of new technological development, and where the federal government continues to tighten its control on fossil fuels, we simply have to try something else.
The way I see it, we have two main options. 1. Over time, we cut off oil subsidies, and invest them in companies using wind power or other forms of clean energy. 2. We put the money towards our growing tourism industry. Either way could be an enormous boon to our state economy, and the excess money we make off of it could go to education.
I think these ideas are potentially great ways to transform our Oklahoma economy and environment. What do you think? Tell me in the comments!
-Travis Baker
travisbaker328@gmail.com
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