Why Is Oklahoma A Large Oil Producer In The United States

In the United States, there are several different states which produce oil. One of these states that is significant is Oklahoma. Oklahoma is a large oil producer in the United States. It is a relatively large state with an exceptionally low population. It is located near the center of the United States and its capital is Oklahoma City. Oklahoma’s economy is the 27th largest economy in the United States and has a nominal gross domestic product of 202.5 billion dollars. In 2014, Oklahoma pushed itself into the top five oil producing states (Walton). This significant amount of oil production is essential to the United States; therefore, Oklahoma is an important producer. Oklahoma plays a crucial role in oil production for the United States. According

Since 2009, state crude oil production has increased 86.5%, one of the larger increases in the country. In this case, the increase in oil production in Oklahoma has positively affected its economy (Kent). It has contributed to more than half of the state’s Gross Domestic Product growth rate which is 2.8%. This contribution is so noteworthy, that if Oklahoma didn’t produce oil it would be near the bottom in growth compared to the other states. Since the oil does contribute to the growth, Oklahoma is rated as one of the top in GDP growth rate. The increased oil production in Oklahoma has also positively affected the employment rate. The strong performance from the state’s energy sector has helped lower the unemployment rate to 4.5% which is below the national rate (Kent 4). The production of oil has created jobs which accounts for 6% of Oklahoma employment. Although, an oil production increase has created many jobs, and has contributed to the economy’s growth rate, the trend of low gas prices throughout the nation have negatively affected Oklahoma’s economy. These low gas prices have pushed energy companies to make damaging cuts in their capital spending budgets. In some cases they are even forced to lay off workers. In April 2015, Oklahoma oil and gas jobs already have declined more than 10 percent from the last year (Wilkerson). This demonstrates one of the ten principles of economics, the trade-off. When gas prices are lowered, the population is happy because they are saving money; however, this is putting some people at risk of losing their