Morgan: Bans will hurt state

In recent years, thanks to Oklahoma’s robust economic climate, hundreds of companies have migrated to Oklahoma to conduct their businesses. With the nation’s lowest cost of living as well as insurance, energy, utility and real estate costs well below the national average, it’s no wonder Oklahoma has been voted a top state for business. With the fifth-lowest overall tax burden and one of the lowest unemployment rates in the country, it is clear that Oklahoma is truly a great place to do work.

One industry Oklahoma’s pro-business environment has attracted in recent years is oil and gas. Thanks to Oklahoma’s pro-business policies, programs and incentives, many of the companies fueling America’s energy renaissance have chosen to conduct their operations in our great state. Not only has Oklahoma become one of the top oil-producing states in the country, it also has the second-largest concentration of oil and gas activity in the United States.

Thanks to these oil and gas companies, Oklahoma’s job growth, income gains and tax revenues have accelerated well beyond the national average. The oil and gas industry provides more than 20 percent of all jobs in the state. In 2013 alone, oil and gas contributed over half a billion dollars in state revenue and more than $300 million in state education funding. The oil and gas industry has and continues to be the key to our state’s growth potential.

Yet in recent weeks, anti-oil and gas activists from within – and outside – our state have attempted to enact regulations that could shut down Oklahoma’s energy industry. In Stillwater, one such group has petitioned the City Council to ban fracking. If enacted, this municipal ban would create barriers to entry and raise the price of doing business. Stringent municipal regulations lead to increased prices and job losses, which would most certainly de-incentivize a business’s willingness to operate within our state.

Oklahoma is not the only state that has realized the gains that come from oil and gas activity. It faces fierce competition from other pro-business states like Texas and Kansas to attract investment from this industry. It’s crucial that our state continues to protect its business environment from onerous and poorly designed regulations, which have the potential to squelch innovation and reduce economic growth.

Fred Morgan is president and CEO of the State Chamber of Oklahoma.