Survey: Oklahoma perfect for energy investmentPublished: Tuesday, January 19, 2021 By: Janice Francis-Smith Source: The Journal Record
Oklahoma is the most attractive jurisdiction for oil and gas investment in North America, according to a recent survey from the Fraser Institute.
The Canadian public policy think tank surveyed 86 senior executives in the upstream oil and gas sector who were asked to rank 16 American states and five Canadian provinces according to 16 factors known to affect investment decisions.
“Oklahoma is the most attractive jurisdiction in the United States – and the most attractive jurisdiction included in this analysis,” reads the report. Oklahoma earned a perfect score of 100 to land in the top spot on the survey’s “Policy Perception Index,” followed by Kansas with a score of 99.42 and Texas with a score of 91.60.
Factors considered included the cost of licenses, lease payment and other production costs, taxation and complexity of compliance, environmental regulations, cost of regulatory compliance, protected areas, trade barriers, labor regulations and employment agreements. Other considerations included quality of infrastructure, labor availability and skills, disputed land claims, political stability, physical safety of personnel and assets, regulatory inconsistencies and the overall legal system.
“Compared to last year’s survey, 7 out of the 16 US jurisdictions (Texas, Wyoming, New Mexico, Montana, Louisiana, the Offshore Gulf of Mexico, and Pennsylvania) experienced declines in their policy scores while only five of them (Oklahoma, Kansas, North Dakota, Mississippi, and Alaska) saw improvements,” the report reads. “For instance, the Offshore Gulf of Mexico experienced a policy score decline of 26 points while Kansas saw its policy score improve almost 18 points. Colorado continues to be the worst performing jurisdiction, the same position it held in last year’s survey.”
All U.S. states included in the study outperformed all Canadian jurisdictions, with executives surveyed expressing their concern over the cost of regulatory compliance in Canada. Only 16% of those surveyed indicated that uncertainty concerning environmental regulations was a deterrent to investment, compared to 64% for Alberta and 80% for British Columbia.