Oklahoma’s Energy Sector and Sustainable Development Goals (SDGs)

Introduction

Oklahoma’s energy industry is a cornerstone of its economy, legacy, and competitive advantage. From traditional oilfields to modern wind farms, the state has powered the nation for generations. Currently, Oklahoma is pioneering advanced energy technologies, aligning with several Sustainable Development Goals (SDGs), including SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 9 (Industry, Innovation, and Infrastructure).

Threats to Renewable Energy Progress

The proposed Senate rollback of renewable energy tax credits poses a significant risk to ongoing investments and projects in Oklahoma. These incentives have been critical in advancing SDG 7 by promoting clean energy solutions and SDG 8 by creating jobs and stimulating economic growth.

Oklahoma’s All-of-the-Above Energy Strategy

Energy Mix and Investments

• Over 41% of Oklahoma’s electricity now comes from renewable energy and battery storage, supporting SDG 7.
• Federal renewable energy incentives have driven more than $28 billion in investments in advanced energy projects statewide.
• These projects contribute to SDG 8 by strengthening the energy grid, industrial base, and providing steady income to local landowners, including ranchers and farmers, who earn $96 million annually through lease payments.

Key Projects Supporting SDGs

1. Red Dirt Wind Project (Weatherford): One of the largest wind energy operations in the U.S., powering over 58,000 homes and generating significant tax revenue for local communities, advancing SDG 7 and SDG 11 (Sustainable Cities and Communities).
2. First Solar Manufacturing Facility (Ardmore): A $1.1 billion investment creating 700+ high-quality jobs, promoting SDG 8 and SDG 9.
3. Southwest Regional Clean Hydrogen Hub (Central Oklahoma): Supported by $1 billion in federal funding, this initiative fosters research, private investment, and workforce training in clean hydrogen technology, aligning with SDG 7, SDG 9, and SDG 13 (Climate Action).

Importance of Stable Federal Policies

Stable federal incentives are essential for sustaining Oklahoma’s energy growth and job creation. Weakening these policies would jeopardize investments and threaten the state’s leadership in energy innovation, impacting SDG 8 and SDG 9.

Government and Industry Perspectives

• Governor Kevin Stitt emphasizes the importance of honoring existing agreements to maintain investor confidence and energy leadership.
• Fair and consistent treatment across all energy sectors is crucial to allow balanced growth of traditional and advanced energy industries, supporting SDG 10 (Reduced Inequalities) and SDG 12 (Responsible Consumption and Production).

Meeting Future Energy Demand

With national electricity demand projected to rise by up to 50% by 2040, Oklahoma is well-positioned to meet this need through diverse energy sources. Ensuring competitive and stable policies will enable the state to continue contributing to SDG 7 and SDG 13.

Economic and Environmental Benefits

• Energy tax credits have demonstrated a $4 economic benefit for every $1 of federal cost, reinforcing sustainable economic growth (SDG 8).
• Advanced energy investments support energy independence and reduce environmental impact, advancing SDG 13 and SDG 15 (Life on Land).

Conclusion

Oklahoma’s energy sector exemplifies a successful integration of traditional and advanced energy sources, contributing significantly to multiple Sustainable Development Goals. Protecting federal policies that support renewable and advanced energy projects is vital for job growth, rural community stability, and national energy security. Oklahoma’s congressional delegation is urged to uphold these policies to ensure a sustainable and prosperous energy future.

Author

Senator Casey Murdock, R-Felt, Assistant Majority Whip of the Oklahoma Legislature.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses Oklahoma’s expansion in renewable energy sources such as wind, solar, energy storage, and hydrogen, highlighting the importance of clean and affordable energy solutions.
2. SDG 8: Decent Work and Economic Growth
   • Creation of jobs through investments in advanced energy projects and manufacturing facilities is emphasized, supporting sustained economic growth.
3. SDG 9: Industry, Innovation, and Infrastructure
   • Advancement of new energy technologies and infrastructure development such as wind farms and hydrogen hubs are key points in the article.
4. SDG 13: Climate Action
   • Promotion of renewable energy and reduction of reliance on fossil fuels aligns with efforts to combat climate change.
5. SDG 15: Life on Land
   • Lease payments to ranchers, farmers, and landowners for renewable energy projects suggest sustainable land use and economic benefits for rural communities.

2. Specific Targets Under Those SDGs Identified

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix – evidenced by 41% of Oklahoma’s electricity coming from renewable energy and battery storage.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology – implied by federal support and investments in advanced energy technologies.
2. SDG 8: Decent Work and Economic Growth
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation – demonstrated by new manufacturing facilities and advanced energy projects creating high-quality jobs.
   • Target 8.5: Achieve full and productive employment and decent work for all – highlighted by the creation of over 700 jobs at the First Solar facility.
3. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable – reflected in investments in wind farms, solar manufacturing, and hydrogen hubs.
   • Target 9.5: Enhance scientific research and upgrade technological capabilities – supported by the Southwest Regional Clean Hydrogen Hub project.
4. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies and strategies – implied by federal renewable energy incentives and advanced energy policies.
5. SDG 15: Life on Land
   • Target 15.3: Combat desertification, restore degraded land and soil – indirectly supported by sustainable land use through lease payments to landowners for renewable energy projects.

3. Indicators Mentioned or Implied to Measure Progress

1. Percentage of electricity generated from renewable sources
   • More than 41% of Oklahoma’s electricity production from renewable energy and battery storage is a key indicator of progress toward SDG 7 targets.
2. Investment amounts in advanced energy projects
   • Over $28 billion invested in Oklahoma’s advanced energy projects reflects economic growth and infrastructure development.
3. Number of jobs created
   • Creation of more than 700 jobs at the First Solar manufacturing facility serves as an indicator for SDG 8 employment targets.
4. Lease payments to landowners
   • $96 million annually paid to ranchers, farmers, and landowners indicates economic benefits and sustainable land use.
5. Electricity demand growth forecasts
   • Projected increase in electricity demand by up to 50% by 2040 highlights the need for sustainable energy infrastructure expansion.
6. Federal support and policy stability
   • Federal renewable energy tax credits and incentives act as policy indicators influencing investment and growth in clean energy sectors.

4. Table: SDGs, Targets and Indicators

Source: oklahoman.com