Oklahoma oil and gas leader warns lawmakers after Devon Energy, Expand Energy move headquarters to Texas

The head of the Petroleum Alliance of Oklahoma delivered a blunt message for state lawmakers — “Don’t panic, do better” — following recent announcements that two major energy companies will relocate their headquarters to Texas.

The comments come weeks after Devon Energy and Expand Energy said they are moving their headquarters to Houston.

Brook Simmons, president of the alliance, said while the departures are disappointing, they do not signal the collapse of Oklahoma’s oil and gas sector.

“They don’t have tall buildings or big campuses so we don’t think about them that much,” Simmons said, referring to smaller operators across the state. “One of those companies in OKC in fact invested $3 billion this week purchasing additional assets.”

Simmons noted that more than 2,700 energy companies operate in Oklahoma and said many began developing assets outside the state as early as 2018.

Tax policy cited as factor in rig decline

In a letter to lawmakers, Simmons pointed to House Bill 1010XX, passed in 2018, which increased taxes on oil and gas production. He shared data showing a sharp drop in rig activity after the measure took effect.

“You take $150 million out of a company and that destroys the rig line for the year,” Simmons said.

He described what he called growing frustration within the industry.

“Sometimes we feel in the industry — and feelings has a lot to do with how people allocate their capital — that they just want us to pay for stuff and they don’t appreciate us,” he said.

Simmons also warned against shifting focus away from oil and gas to recruit other industries.

“You cannot expect to feel good all the time about working in Oklahoma if you’re constantly chasing bright shiny objects and attracting industries that aren’t going to be paying for the schools, roads, bridges, and then relying on the oil and gas industry to pay that bill all the time,” he said.

‘Cannot be taken for granted’

Despite his criticism, Simmons said Oklahoma’s energy sector remains a central driver of the state’s economy.

“Oklahoma will be fine, however the industry cannot be taken for granted,” he said.

Simmons added that most of the top 25 oil and natural gas companies operating in Oklahoma are not headquartered in the state, but Oklahoma still benefits significantly from their production and investment.

He called on lawmakers to reduce barriers that discourage investment.

“If you want more of something, don’t increase taxes on it. Don’t create economic friction,” Simmons said. “You want more of something — don’t mess it up.”

Take a look at the full letter here:https://www.thepetroleumalliance.com/wp-content/uploads/2026/02/2026_Legislative_Letter_Final.pdf