The Latest in Oklahoma: August 8, 2025
A&A Advocates
Oklahoma’s natural gas industry is poised for growth as rising demand from AI and data centers boosts its long-term role in U.S. energy production, according to a report from Oklahoma City-based Federal Reserve economists Cortney Cowley and Chase Farha. They note that while increased drilling is unlikely to significantly affect state employment, it could raise tax revenues and GDP. After a period of historically low natural gas prices in 2023–2024, prices rebounded in 2025 due to higher liquefied natural gas exports, driving a 67% increase in Oklahoma rig activity from July 2024 to May 2025. Although recent prices have dipped below profitability, futures markets project continued gains, suggesting further drilling growth ahead if infrastructure keeps pace with demand.
ConocoPhillips announced it will sell its Anadarko Basin assets to Flywheel Energy for $1.3 billion, exceeding its initial $2 billion asset-sale target ahead of schedule and raising the goal to $5 billion by 2026. The sale, part of its strategy following the $22.5 billion Marathon Oil acquisition, will help reduce debt and focus on higher-margin operations, with the company expecting over $7 billion in additional free cash flow by 2029. Strong second-quarter results—driven by a 446,000 barrels of oil equivalent per day production increase, lower costs, and a $1 billion cost-cutting plan—helped offset lower oil prices and beat profit estimates at $1.42 per share.
Oklahoma’s county jail backlog has grown 74% since 2021, with 1,355 sentenced inmates awaiting transfer to state custody, straining local jails and staff. Reduced prisoner transport trips by major counties, particularly Oklahoma and Tulsa, have contributed to rising jail populations and safety concerns, with Oklahoma County reporting eight inmate deaths so far in 2025. Officials cite staffing shortages, logistical constraints, and low state reimbursement rates—currently $27 per inmate per day, set to rise to $32 in November—as ongoing challenges. While the Department of Corrections plans to accept more inmates in August to ease the strain, advocates warn the backlog delays rehabilitation opportunities and increases operational risks for county facilities.
Gov. Kevin Stitt issued an executive order directing the Oklahoma Health Care Authority to cut Medicaid contracts with any entities or individuals connected to abortion services, citing the state’s pro-life stance. The move follows a recent U.S. Supreme Court ruling that allows states to revoke Medicaid coverage for Planned Parenthood and similar providers. Supporters say the order ensures taxpayer dollars do not indirectly fund the abortion industry, while reproductive health advocates warn it is overly broad, vague, and could threaten access to critical care, including life-saving abortions permitted under state law.
The Oklahoma Supreme Court has temporarily blocked House Bill 2783, a new law that would allow the appointing authorities of the Tobacco Settlement Endowment Trust (TSET) board to remove members at will and limit their service to seven years. TSET, which manages nearly $2 billion in public funds, argues that only voters can change board terms because the trust was created through a constitutional amendment in 2000 after a tobacco settlement. The law was set to take effect Aug. 28 but will remain on hold while the court considers the case. Lawmakers have previously sought to tap TSET funds for various initiatives, including a recent $50 million request toward a children’s hospital project.
Interim Studies
The interim study period began on August 1, 2025 and will end November 6, 2025.
Click to view the House and Senate interim studies.
QUOTE OF THE WEEK
“It’s common sense, making sure taxpayer dollars aren’t funding the very foods that fuel obesity, diabetes, and chronic disease will pay dividends for generations,” Governor Kevin Stitt said in a statement regarding the removal of certain foods from SNAP benefits. “I’m grateful that our waiver is officially approved.”