Another Major Energy Company Leaves Oklahoma
- Expand Energy announces move to Houston, following Devon Energy’s lead
- Headquarters relocation planned for mid-2026
Expert Perspective: Steve Agee, Dean Emeritus and Professor of Economics at the minor school of Business, Oklahoma City University
Historical perspective
Steve Agee has been in the oil and gas industry for 40 years, and he says this isn’t the first time a major energy company has left the state.
“I remember very well when Kerr-McGee Corporation was a major oil and gas company in Oklahoma City, and they sold, and they, they left the city and everyone was just panicky about what’s going to happen now because Kerr-McGee is gone?” said Agee.
He predicts after some initial pain, companies will fill the gap the same way Devon and Expand did after Kerr-McGee left in 2006.
“But once the dust settles and and, and we have other entities that kind of move in and take up that slack or fill in that hole, I think we’ll be fine because we are we have a great growing economy in Oklahoma City and the state,” said Agee.
Potential economic impact
Agee also thinks this won’t hurt our economy as much as it would have 40 years ago, when 29% of the state revenue came from the oil and gas industry… now Agee says that number about 11%.
- 40 years ago: 29%
- Today: 11%
“Other, industries have grown. Aerospace has really exploded. Okay. Health care industry has really exploded. These other industries outside of energy have grown so much that when you look at a pie chart, okay, and you divide up who’s really contributing revenue to the state of Oklahoma, the oil and gas industry still contributes a lot in absolute dollars… But as a percentage of the total, it’s less now. It’s more like 10 or 12% versus 29%. And the point there is that our economy has diversified enough that a move like this isn’t going to be nearly as impactful as it would have been 30 or 40 years ago.” said Agee.
Why Houston?
As for why Devon and Expand Energy want to move their headquarters, Agee says Houston’s global reach and financial resources could be part of the draw.
“I think these companies are getting big enough that they might be starting to think about international prospects…There’s big banks in Houston, too. So if they want to do some financing through bank resources or consortiums, there’s more activity in Houston at the international level,” said Agee.
Official statements:
Expand’s decision to relocate its executive team is the continuation of a trend in the energy industry toward Houston that started many decades ago. It’s a reminder of how much we owe the individual corporate leaders who had protected us in the past from those trends. It’s also a reminder that we have to stay the course and continue to invest in our city’s quality of life so that our economy can continue to diversify. Right now, our local economy is as strong as it’s ever been, so I think we’re well-positioned for moments like this, and I have every reason to believe we will continue to demonstrate our resilience.
In this particular case, Expand’s interim CEO has told me they are committed to OKC and that other than the senior executives, none of the 500 jobs currently located in OKC will relocate. So this impact appears minimal in the near term. But whatever the future holds, we’ve already built a city and an economy that is bigger than any one industry, and is certainly bigger than any one company, and we just need to stay the course and continue that strategy.
I am grateful that homegrown companies like Expand Energy have pledged to keep a significant workforce and operational presence in Oklahoma, We must continue to get government out of the way and make Oklahoma the best place for business. I have consistently called for the establishment of business courts to give businesses assurance that conflict will be navigated efficiently and fairly. I’ve also pushed for a more business-friendly tax system that will attract more businesses to our state. With smart adjustments, we can be more competitive at every stage of business – from founders and innovators to the headquarters of major industries.