Last Updated: August 21, 2025

Overview

Oklahoma is in the heart of the U.S Mid-Continent oil region, a vast natural gas- and crude oil- producing area that also encompasses Kansas, Texas, Arkansas, Louisiana, and New Mexico. The region is flanked by the Mississippi River to the east and the Rocky Mountain states to the west, with Oklahoma at its center.^1,2 Natural gas and crude oil wells can be seen across much of Oklahoma, and the state has some of the largest natural gas and oil fields in the country.^3,4 Eastern Oklahoma is also a coal-mining region.^5,6 Winds that blow across the open plains give the state significant wind energy resources, and wind power provides a substantial and increasing share of Oklahoma's electricity generation.^7,8 The state's climate is humid and subtropical in the east and semi-arid in the west. While solar potential in Oklahoma is widespread, the available solar energy resource increases across the state from east to west as sunny, arid conditions increase and precipitation decreases.^9,10 Overall, the state is ranks sixth in the nation in solar power potential.¹¹ With several rivers and large reservoirs, the state also has hydropower resources.^12,13

Oklahoma is the 28th most-populous state in the nation, but it ranks 10th in energy use per capita.^14,15 The state's industrial sector, which includes the energy-intensive mining, crude oil and natural gas industries, accounts for 40% of Oklahoma's energy consumption. The transportation sector makes up 30% of state energy use. The state has long, hot summers, but Oklahoma winters are short and less severe than other states to the north. The state's residential sector, which accounts for 15% of total energy consumption and the commercial sector uses about 14%.^16,17,18 Overall, the state ranks eighth in the nation in total energy production and produces almost three times more energy than it consumes. Much of the energy produced in Oklahoma—particularly natural gas, petroleum, and electricity—is sent to other states.^19,20,21

Natural gas

Oklahoma has more than 6% of the nation's total proved natural gas reserves, ranking sixth in the nation.²² The state contains all or part of 13 of the nation's largest natural gas fields, as measured by proved reserves.²³ In 2024, Oklahoma was the sixth-largest producer of marketed natural gas and accounted for about 7% of the U.S. total.²⁴ Marketed production was almost 2.8 trillion cubic feet in 2024, slightly less than its all-time high of 3 trillion cubic feet in 2019.²⁵

The Hugoton Gas Area is the largest natural gas field in Oklahoma and the 15th-largest natural gas field in the nation. It covers parts of the western Oklahoma panhandle, the Texas panhandle, and Kansas.^26,27 A lack of accessible markets limited the initial development of the Hugoton natural gas area. However, in 1931, the critical development of a 24-inch diameter high-pressure pipeline from the Hugoton Gas Area in Oklahoma to Chicago enabled the nation's first long-distance pipeline transportation and marketing of natural gas far from its source.²⁸ Today a web of interstate and intrastate natural gas pipelines covers the state.²⁹ The natural gas produced from the Hugoton field also contains unusually high concentrations of helium, which is used in medical and industrial applications.^30,31

Oklahoma has substantial natural gas resources in shale formations (shale gas) and coalbeds (coalbed methane).³² In 2023, the state accounted for about 5% of the nation's proved shale gas reserves and was the seventh-largest shale gas producer.^33,34 As a result of advanced horizontal drilling and hydraulic fracturing technologies, Oklahoma's shale gas annual production steadily increased between 2007 and 2019 when it peaked at 2.2 trillion cubic feet. After a decline in 2020 and 2021, production once again began to increase and the state's shale gas wells produced more than 2.2 trillion cubic feet of gas in 2023.^35,36 Oklahoma also is 1 of 16 states with natural gas production from coal seams.^37,38 In 2023, Oklahoma's annual natural gas production from coalbed methane wells was about 63 billion cubic feet, about 9% of the nation's total.³⁹

Oklahoma typically produces between three and four times more natural gas than it consumes. Surplus natural gas is either injected into the state's 12 natural gas storage fields or added to the volumes transported by the interstate pipelines that cross through the state.^40,41,42 In 2023, three times as much natural gas flowed out of Oklahoma as entered the state. Most of that natural gas went to northern and eastern markets through Kansas, Texas, and Arkansas.⁴³ Oklahoma is the nation's 11th-largest consumer of natural gas.⁴⁴ Due to the many natural gas fields in Oklahoma, the natural gas industry directly consumes about one-fifth of the total natural gas consumed in the state for natural gas production, processing, and distribution. In 2024, the electric power sector consumed 55% of the natural gas delivered to end-use consumers in the state, a new high. The industrial sector, excluding direct use by the natural gas industry, consumed about 32%. Although about half of Oklahoma households heat with natural gas, the residential sector and the commercial sector together account for 13% of the natural gas consumed in the state. The transportation sector uses a small amount of natural gas.^45,46

Petroleum

The discovery of oil transformed Oklahoma's economy. When Oklahoma became a state in 1907, it was the largest crude oil producer in the nation.⁴⁷ In 2023, Oklahoma had about 1.6 billion barrels of proved crude oil reserves, about 3% of the nation's total.⁴⁸ In 2024, Oklahoma produced about 145 million barrels of crude oil, the sixth-largest amount among the states, and the lowest output since 2013. Still, the state accounts for 3% of the nation's total annual crude oil production.⁴⁹ Oklahoma has crude oil well throughout the state, with most oil fields in the eastern half of the state and most natural gas fields in the west.^50,51 One of the 100 largest oil fields in the United States, Oklahoma's Sho-Vel-Tum field, has continuously produced crude oil since its discovery in 1905.^52,53 The state's oil industry experienced a decline in production from the mid-1980s until 2005 when annual crude oil production in Oklahoma fell to 61 million barrels, its lowest level since 1913.⁵⁴ Production then increased and peaked in 2019 at 217 million barrels before generally declining since then.⁵⁵

Oklahoma's five crude oil refineries have a combined processing capacity of about 533,000 barrels per calendar day, which is about 3% of the U.S. total refining capacity.^56,57 Several petroleum product pipelines connect the state's refineries to markets in Oklahoma and in other states. Pipelines also bring crude oil into Oklahoma from other states and Canada. Those pipelines converge in central Oklahoma near the city of Cushing, which is known internationally as the designated delivery and pricing point for the U.S. benchmark crude oil, West Texas Intermediate or WTI, a domestically produced light (low density), sweet (low sulfur content) crude oil traded in both the physical and futures markets.^58,59 Cushing, known as the pipeline crossroads of the world, has 20 inbound pipelines, 16 outbound pipelines, and more than 30 intra-Cushing pipelines.⁶⁰ The city is also a major crude oil storage terminal and, excluding the U.S. Strategic Petroleum Reserve, it has 14% of the nation's crude oil storage capacity.⁶¹

Oklahoma is near the top one-fourth of the states in per capita petroleum consumption.⁶² The transportation sector accounts for about four-fifths of the petroleum consumed in the state, and the industrial sector uses nearly one-fifth. The residential and commercial sectors, together, account for 4% of state consumption.⁶³ Almost 1 in 15 Oklahoma households use petroleum products, mostly propane, to heat their homes.⁶⁴

Electricity

Natural gas and wind together accounted for nine-tenths of Oklahoma's total in-state electricity net generation in 2024. Natural gas provided 50% of Oklahoma's total net generation and wind energy accounted for about 41%.⁶⁵ Oklahoma has a natural gas energy standard that makes natural gas the preferred choice for any new generating facilities.⁶⁶ Natural gas fuels 7 of Oklahoma's 10 largest power plants by capacity and 9 of 10 by generation.^67,68 In 2024, electricity generated from natural gas reached a record high in the state.⁶⁹ Oklahoma ranks third among the states, behind Texas and Iowa, in the amount of electricity it generates from wind. In 2024, the state accounted for about 9% of the nation's wind-powered electricity net generation.⁷⁰ Coal accounted for 6% of in-state generation in 2024, down from 43% in 2014. Almost all the rest of Oklahoma's net generation comes from renewable resources other than wind, primarily hydroelectric power.⁷¹ Oklahoma does not have any nuclear power plants.⁷²

Total electricity sales in Oklahoma are less than in nearly half the states, but its electricity sales per capita are among the top five states.⁷³ Because Oklahoma generates more electricity than it uses, the state sends its excess power to other states over the regional grid.⁷⁴ About two in five Oklahoma households use electricity as their primary energy source for home heating and almost all use air conditioning during the hot summers.^75,76,77 In 2024, the commercial sector surpassed the residential sector to make up the largest share of electricity consumption in Oklahoma at about 35%. The residential sector accounted for about 34% and the industrial sector accounted for the remaining 31% of state electricity consumption.⁷⁸ Oklahoma had 377 public electric vehicle charging locations in mid-2025.⁷⁹

Renewable energy

Renewable resources accounted for 43% of Oklahoma's total in-state electricity generation in 2024, an increase from about 20% a decade earlier. About 94% of the state's renewable generation came from wind energy. Other renewable energy resources contributed to in-state generation, including hydropower and to a lesser extent solar energy and biomass.⁸⁰ In 2024, wind energy's share of Oklahoma's total in-state electricity net generation was larger in Oklahoma than in all but three other states—Iowa, South Dakota, and Kansas.⁸¹ At the end of April 2025, Oklahoma had 12,748 megawatts of wind capacity, which was about 91% of Oklahoma's total generating capacity from all renewable resources.⁸² Between 2022 and 2024, several large wind energy projects came online, adding almost 2,500 megawatts of generating capacity. Of those projects, the Traverse Wind Project is Oklahoma's largest, with 999 megawatts of generating capacity and 356 turbines.^83,84

Many of the rivers that flow across Oklahoma were dammed to form lakes, and the state has more man-made lakes than any other state in the nation.^85,86 Those rivers are the locations of Oklahoma's 10 hydroelectric power plants.⁸⁷ Hydroelectric power contributes varying amounts to the state's electricity net generation depending on river levels, precipitation, and drought.⁸⁸ In 2024, hydropower provided about 2% of the state's total net generation, but in the past 20 years, it has contributed amounts ranging from about 1% to about 5% annually.⁸⁹ The state also has one hydroelectric pumped storage power plant.⁹⁰ Pumped storage allows system operators to use inexpensive electricity during periods of low demand to pump water from a lower reservoir to an upper reservoir. During periods of high electricity demand, the upper reservoir releases water that flows through turbines to the lower reservoir, generating electricity. A pumped storage facility uses more electricity than it generates, but it supplies power in periods when electricity demand is highest.⁹¹

In 2024, utility-scale (1 megawatt or larger) and customer-sited, small-scale (less than 1 megawatt) solar photovoltaic (PV) installations provided 1% of Oklahoma's renewable electricity generation.⁹² Western Oklahoma has the most solar potential.⁹³ The state's 15 utility-scale solar arrays have a combined generating capacity of about 274 megawatts, with another 1,143 megawatts scheduled to come online by the end of 2026.⁹⁴ Although solar power generation from both utility-scale and small-scale generators was 0.6% of the state's total electricity generation, its total solar power generation was almost six times greater in 2024 than in 2020.⁹⁵

Biomass resources provided 0.3% of Oklahoma's total electricity net generation and 0.8% of the state's renewable generation in 2024. The state has three utility-scale biomass power plants, one that uses wood and wood waste, one that uses solid waste, and one that uses landfill gases. The wood-fueled power plant is the larger of the two, with a generating capacity of about 60 megawatts.^96,97

Oklahoma does not require gasoline blended with ethanol to be sold in the state and does not have any fuel ethanol production plants.^98,99 However, most U.S. gasoline contains at least 10% ethanol.¹⁰⁰ The state's one biodiesel plant uses animal fats, by products of Oklahoma's livestock production, as a feedstock.¹⁰¹ The plant's production capacity is 40 million gallons of biodiesel per year.¹⁰² Oklahoma consumes about 35 million gallons of biodiesel annually.¹⁰³

Coal

Oklahoma's coal-mining region is in the northeastern part of the state and extends south from the Kansas border toward the Arkansas border in the east.¹⁰⁴ Oklahoma's coal industry prospered with the development of railroad networks, but coal production peaked at 4 million tons per year during World War I and then began to decline in the 1920s.¹⁰⁵ By 2023, Oklahoma had 0.3% of the nation's estimated recoverable coal reserves, and the state's one active coal mine produced about 1,800 tons of bituminous coal, down from a peak of almost 2 million tons produced from 9 active mines in 2006.^106,107,108 The electric power sector accounts for almost all of the coal used in Oklahoma.¹⁰⁹ The state uses more coal than it produces. Almost all of the coal consumed in the state comes from Wyoming by rail.¹¹⁰

Energy on tribal lands

Oklahoma has the nation's largest Native American population and has 38 federally recognized Indian Nations and 14 recognized Indian tribes.^111,112 Federal legislation enacted at the end of the 19th century stripped reservation status from almost all tribal lands in the Oklahoma territory before it became a state in 1907.¹¹³ Oklahoma tribes now govern and provide services within tribal jurisdictional areas and tribal areas exist across about three-fourths of the state.^114,115 The nearly 1.5 million acres of the Osage Nation Reservation occupy all of Osage County, Oklahoma. The tribe purchased its land, including the mineral rights, from the Cherokee in the 19th century. The Osage tribe discovered oil on their land in 1894.¹¹⁶ The Osage Minerals Council administers the crude oil and natural gas resources on the reservation, and the tribe receives income from the crude oil and natural gas produced in the county.¹¹⁷

In addition to fossil energy resources, Oklahoma's tribal areas have high potential for electricity generation from renewable sources. Oklahoma contains: 6 of the 15 U.S. tribes with the greatest potential for wind-powered electricity generation and solar PV electricity generation; 4 of the 15 U.S. tribes with the greatest potential for wood biomass electricity generation; and 3 of the 15 U.S. tribes with the greatest hydropower generation potential.^118,119

Five Oklahoma tribes—the Cherokee Nation, Kaw Nation, Otoe-Missouri Tribe, Pawnee Nation, and Ponca Nation—leased land to a company to build a wind farm on the Chilocco Indian School's land in Kay County. The 153-megawatt project, renamed Big Deer Wind, when completed, will be one of the nation's largest wind farms that is entirely on Native American land.^120,121,122

The Caddo Nation, based in south-central Oklahoma, partnered with the Oklahoma State University Institute of Technology to develop the workforce for renewable energy initiatives.^123,124 They also partnered with an energy developer to build solar projects on their lands and currently have two solar energy projects under development: the 116-kilowatt Caddo Child Care Center and 207-kilowatt Caddo Travel Plaza.¹²⁵ Several other solar projects are in the early stages of development on tribal lands in Oklahoma.¹²⁶

Endnotes

¹ Encyclopedia.com, Midcontinent Oil Region, accessed July 1, 2025.
² Franks, Kenny A., "Petroleum Industry," Encyclopedia of Oklahoma History and Culture, accessed July 1, 2025.
³ The University of Oklahoma, Map of Oklahoma Oil and Gas Fields, accessed July 1, 2025.
⁴ U.S. Energy Information Administration (EIA), Top 100 U.S. Oil and Gas Fields (March 2015), p. 5-10.
⁵ U.S. EIA, Annual Coal Report (October 30, 2024), Table 15, Recoverable Coal Reserves at Producing Mines, Estimated Recoverable Reserves, and Demonstrated Reserve Base by Mining Method, 2023.
⁶ Goostree, Eric, "Mining Towns," The Encyclopedia of Oklahoma History and Culture, accessed July 1, 2025.
⁷ U.S. Department of Energy, Energy Efficiency and Renewable Energy, WINDExchange, Wind Energy in Oklahoma, accessed July 1, 2025.
⁸ U.S. EIA, Electricity Data Browser, Net generation for all sectors (thousand megawatthours), Oklahoma, Annual, 2001-24.
⁹ U.S. Department of Energy, National Renewable Energy Laboratory, Direct Normal Solar Irradiance (February 22, 2018).
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¹²¹ Hubbard, Julie, "Cherokee Nation to operate largest wind farm on tribal land," Native Times (May 14, 2013).
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