Petroleum Alliance Blames Oklahoma Legislature for Loss of Energy Company HQs

Industry group says state's tax hikes and policy decisions drove Devon Energy and Expand Energy to move headquarters to Texas

Feb. 22, 2026 at 8:47pm

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The Petroleum Alliance of Oklahoma has sent a strongly worded letter to state legislative leaders, blaming them for the decisions by Devon Energy and Expand Energy to move their headquarters from Oklahoma to Houston, Texas. The industry group's president, Brook Simmons, argues that the Oklahoma legislature's actions over the past decade, including tax increases on the oil and gas industry, have made the state less attractive for investment and capital, leading to the loss of these major energy companies.

Why it matters

The departure of Devon Energy and Expand Energy is a significant blow to Oklahoma's economy, which is heavily dependent on the oil and gas industry. The Petroleum Alliance warns that without policy changes to improve the state's business climate, Oklahoma risks losing more energy companies and the economic activity they generate.

The details

In the letter, Simmons cites data showing the oil and gas industry's outsized impact on Oklahoma's economy, accounting for 23% of total statewide economic activity, 1 in 10 jobs, and $3.2 billion in state and local taxes. He argues that the legislature's actions, such as raising taxes on the industry from 2015-2018, have driven investment and drilling activity away from Oklahoma, with the state seeing the fastest decline in rig activity among its peers. Simmons offers specific policy recommendations for the legislature, including tort reform, emphasizing natural gas development over renewable energy, stopping the 'gaming' of the ad valorem tax system, providing tax relief, and education reform.

  • In 2018, the Oklahoma legislature passed HB 1010XX, which Simmons says shifted Devon Energy's focus outside of Oklahoma.
  • From 2019 to 2024, Oklahoma was the only U.S. state to have a net loss of 'advanced industry' jobs, which includes oil and gas extraction.
  • Oklahoma's rig activity fell farther and faster than any peer state, shedding capital investment by as much as 86% from 2017 to 2026.

The players

Brook A. Simmons

The president of the Petroleum Alliance of Oklahoma, an industry group that represents the state's oil and gas companies.

Devon Energy

A major oil and gas company that has decided to move its headquarters from Oklahoma to Houston, Texas.

Expand Energy

An energy company that has also decided to relocate its headquarters from Oklahoma to Houston, Texas.

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What they’re saying

“To borrow from Mark Twain: Reports of the oil and natural gas industry's Oklahoma demise are greatly exaggerated!”

— Brook A. Simmons, President, Petroleum Alliance of Oklahoma

“If you want less of something — fewer leading Oklahoma businesses, less oil and natural gas production, and ultimately less revenue for public policy priorities — raise taxes on that thing and treat it with disdain as lawmakers did from 2015 to 2018.”

— Brook A. Simmons, President, Petroleum Alliance of Oklahoma

“The Houston skyline is a monument to poor public policy decisions in Louisiana and Oklahoma.”

— Oil and gas CEO

What’s next

The Petroleum Alliance president urged the Oklahoma legislature to take action this legislative session to reverse the 'policy-inflicted decline' and restore the state's competitiveness for oil and gas investment and headquarters. Specific recommendations include tort reform, emphasizing natural gas development, stopping the 'gaming' of the ad valorem tax system, providing tax relief, and education reform.

The takeaway

The departure of Devon Energy and Expand Energy highlights the need for the Oklahoma legislature to reevaluate its policies towards the state's vital oil and gas industry. Failure to address the industry's concerns could lead to further losses of major energy companies and the economic activity they generate, threatening Oklahoma's status as a hub for the energy sector.