May 9 & 10, 2017 • Oklahoma City, OK • Cox Convention Center
Oil in Oklahoma was first discovered, by accident, in 1859, near Salina, in the U.S. state of Oklahoma, in a well that had been drilled for salt. In 1907, before Oklahoma became a state, Oklahoma produced the most oil of any state or territory in the United States. From 1907 to 1930, Oklahoma and California traded the title of number one US oil producer back and forth. Oklahoma oil production peaked in 1927, at 762,000 barrels/day, and by 2005 had declined to 168,000 barrels/day, but then started rising, and by 2014 had more than doubled to 350,000 barrels per day, the fifth highest state in the U.S.
In the latter quarter of the 20th century, an average decline of 3.1%/year, until additional drilling led to a temporary increase from 1980 to 1984, followed by a decline at 6.6%/year until the average decline of 3.1% was met in 1994. As of September 2012, 72 out of the 77 counties in Oklahoma have producing oil or gas wells. The deepest natural gas well is 24,928 feet (7,598 m), in Beckham County, and the deepest producing oil well is 15,500 feet (4,700 m), in Comanche County.
Oklahoma is the nation’s third-largest producer of natural gas, fifth-largest producer of crude oil, and has the second-greatest number of active drilling rigs, and ranks fifth in crude oil reserves. While the state ranked eighth for installed wind energy capacity in 2011, it is at the bottom of states in usage of renewable energy, with 94 percent of its electricity being generated by non-renewable sources in 2009, including 25 percent from coal and 46 percent from natural gas. Oklahoma has no nuclear power. Ranking 13th for total energy consumption per capita in 2009, Oklahoma’s energy costs were 8th lowest in the nation.
As a whole, the oil energy industry contributes $35 billion to Oklahoma’s gross domestic product, and employees of Oklahoma oil-related companies earn an average of twice the state’s typical yearly income. In 2009, the state had 83,700 commercial oil wells churning 65.374 million barrels (10,393,600 m3) of crude oil. Eight and a half percent of the nation’s natural gas supply is held in Oklahoma, with 1.673 trillion cubic feet (47.4 km3) being produced in 2009.
According to Forbes magazine, Oklahoma City-based Devon Energy Corporation, Chesapeake Energy Corporation, and SandRidge Energy Corporation are the largest private oil-related companies in the nation, and all of Oklahoma’s Fortune 500 companies are energy-related. Tulsa’s ONEOK and Williams Companies are the state’s largest and second-largest companies respectively, also ranking as the nation’s second- and third-largest companies in the field of energy, according to Fortune magazine. The magazine also placed Devon Energy as the second-largest company in the mining and crude oil-producing industry in the nation, while Chesapeake Energy ranks seventh respectively in that sector and Oklahoma Gas & Electric ranks as the 25th-largest gas and electric utility company.
Oklahoma Gas & Electric, commonly referred to as OG&E (NYSE: OGE) operates four base electric power plants in Oklahoma. Two of them are coal-fired power plants: one in Muskogee, and the other in Redrock. Two are gas-fired power plants: one in Harrah and the other in Konawa. OG&E was the first electric company in Oklahoma to generate electricity from wind farms in 2003.