Pic-of-the-Week: Why Oil & Gas Matters So Much in Oklahoma (05/12/2014)

OK Oil and Gas Earnings Share Near Oil-Boom High in Early 1980s – The economic role played by the oil and gas industry in Oklahoma has returned to near levels last seen in the Oil-Boom days more than three decades ago. Remarkably, earnings across the mining industry now total $15.8 billion, or 13.7% of all earnings statewide. And as the graphic shows, the tiny utilities sector is the only major industry sector within shouting distance of mining based on average earnings per worker.

For comparison, mining is roughly 40-50% larger than both the manufacturing and health care sectors, its nearest competitors, based on earnings generated within the state.

Along with such a high wage share, what really separates the industry from the others is the more than $12 billion spent on exploration and drilling in Oklahoma in 2013. This activity makes the oil and gas industry the largest single source of business investment spending in the state, by far.

It also explains Oklahoma’s strong economic performance and sharp gains relative to the nation in per capita personal income the past several years.