"An Honorable History and a Promising Future"

Oklahoma has a rich history in the oil and gas industry stretching back to the days of E.W Marland and the Marland Oil Company in Ponca City. In the early 1920's it was believed that Marland controlled approximately 10 percent of the world's oil production, which is equivalent to Saudi Arabia today. Although the grandness of the Marland Empire is gone the oil and gas industry of Oklahoma is stronger than ever.

Oklahoma is the nations' second-largest producer of natural gas and the fifth-largest producer of crude oil, producing approximately 170,000 barrels of oil everyday. Crude oil production has provided nearly $75 billion in revenues to our state and it is estimated that two to three times the amount produced still remains in the ground. Although Oil production peaked in Oklahoma in 1927, thousands of operating wells continue to produce millions of Barrel equivalents each year. In 2006 alone, oil and natural gas producers contributed $1 billion to the state through the gross production tax.

Since the creation of the Oklahoma Energy Resources Board by the State Legislature in 1993, the industry has worked to be better community partners. To date, more than $38 million has been spent on restoring orphaned and abandoned well sites around the state. The industry has also made a tremendous effort towards educating the public about the exploration, extraction and refining of oil.

The effects of oil production have significant social and environmental impacts. Opponents of the process would point out the generation of polluting wastes are not produced by other alternative energy sources. There are also numerous counts of oil spills on land and sea; in some cases, damaging delicate ecosystems that will never recover. Oil opponents would also point to the growing sector of renewable energy that is safer and cleaner. Burning fossil fuels and the production of carbon dioxide is widely considered the main cause of global warming. Although burning oil produces less carbon dioxide than coal and there are fewer processes to limit carbon dioxide output in vehicles.

There is no doubt that oil consumption will continue to rise at a feverous rate, much faster than production can provide fuel. That is why Oklahoma's future lies in creating better ways to find, extract and produce oil. We also must be on the forefront of the development of alternative fuels and biofuels. Not to replace the production of oil but to complement it.

An evolving term in world of oil production is EOR or ‘enhanced oil recovery.' This is a generic term for more efficient ways to extract oil from the ground with the least amount of lost product. It is the job of the Corporation Commission to ensure that our companies are practicing EOR to create a more profitable and environmentally friendly industry. And to their credit, some of our companies are leading the industry in innovative EOR techniques, thereby enhancing production and profitability.

One EOR technique widely used in the industry and in Oklahoma is the injection of gas into the reservoir whereupon it expands and thereby pushes additional oil to the surface. It also dissolves in the oil to lower its viscosity and improves the flow rate of the oil. One of the gasses used in the process is carbon dioxide and this gas is also produced by coal burning electric plants, which have the ability to capture and use it as a commodity. Both industries are heavily regulated by the Corporation Commission which gives the agency the ability to encourage partnerships in situations when they can be beneficial to one another and beneficial to the State of Oklahoma.

Part of the foundation of Oklahoma's history is that of the oil and gas industry. Over the years we have enjoyed the feast and endured the famine of the oil markets. In the 1980's the industry mostly abandoned our state like a drywell. In 2008 we are no longer in our infancy, having begun our second century. Exciting gas activity is occurring in the Woodford Shale area and elsewhere and Oklahoma is leading the way with advances in newer technologies and techniques. Today, Oklahoma is smarter and better equipped to conquer the challenges of a dynamic energy world. Our Oil & Gas heritage, coupled with our State's smarts and innovations, has positioned Oklahoma as a leader for this new century and beyond.

I am firmly committed to the idea that Oklahoma's best days are ahead, for the sake of our citizens and for the sake of our industries.