Report: Oklahoma’s Oil and Natural Gas Resources Hold Long-Term Development Potential | Oklahoma Oil & Gas Association

Report: Oklahoma’s Oil and Natural Gas Resources Hold Long-Term Development Potential

The Anadarko Basin has historically been a substantial contributor to U.S. oil and natural gas production, and by the numbers, the Basin has a long runway ahead for unconventional development. According to new research from IHS Markit, the Greater Anadarko Basin in Oklahoma holds an estimated 16 billion barrels of oil and more than 200 trillion cubic feet of natural gas in technically recoverable unconventional resources.

Here are the key takeaways from the IHS Markit report:

  • Long-Term Growth Potential: The Greater Anadarko Basin, with 41 stacked plays and only 20% of STACK “sweet-spot” locations developed, holds an “estimated 16 billion barrels of oil and more than 200 trillion cubic feet of gas.”
  • Immense, Undeveloped Opportunity: The Simpson shale formation “could be one of the biggest yet-to-be developed shale plays in the United States.” 
  • More Economic Activity for Oklahoma: IHS Markit says it can “easily envision an additional 4,000 to 5,000 horizontal wells drilled” in the Greater Anadarko Basin.

In response to the new report, OIPA-OKOGA president Chad Warmington issued the following statement:

With 41 stacked plays and, as the report confirms, one of the biggest yet-to-be developed shale plays in the United States, Oklahoma’s world-class oil and natural gas resource base presents long-term attractive development opportunities. Our resource strength puts Oklahoma in the driver’s seat to delivering energy independence, consumer savings, and wide-spread economic growth.

To fully realize this opportunity – and the economic, environmental and national security benefits that come with it – we need sound, common sense policies – not higher taxes and regulatory challenges – that encourage the responsible development of our abundant resources.

While Oklahoma is already a leader in energy production, the new IHS Markit report is welcome news for Oklahoma’s economy, as 1 in 6 Oklahoma jobs are tied to energy and a quarter of all taxes paid in Oklahoma come from the oil and natural gas sector. Last year, the gross production tax on oil and natural gas generated nearly $1 billion in new revenue – up nearly $451 million from 2017, according to the state treasurer’s office.