OKLAHOMA CITY –
The midterm elections are over, but financial leaders across Oklahoma say the results could have an impact far beyond politics.
Oklahoma’s economy has traditionally relied heavily on oil and natural gas, but as the state continues to grow and attract new industries, an expert says the economic landscape is changing — and the election could play a role in what happens next.
The state ranks sixth nationally in production of both oil and natural gas — with the combined industry supporting more than 250,000 jobs across Oklahoma. As such, federal decisions surrounding energy policy, taxes and regulations can have ripple effects on businesses and workers here at home.
“Over the last three or four decades, we’ve worked very hard to diversify our economy,” Chief Investment Strategist at Bank of Oklahoma Steve Wyett said. ” It used to be much more heavily weighted towards the oil and gas industry; it’s still important, but it’s not nearly as important as it was 30 or 40 years ago. We’ve got other industries like aerospace that continue to grow in importance as we think about statewide employment.”
While the election may influence business decisions and investor confidence, Wyett said those changes will not necessarily show up overnight.
“This is an important marker or sign for companies that think about whether they want to invest in their business and grow,” Wyett said. “If their stock prices are improving, that puts them in a better position to think, ‘OK, we’ve got opportunities to move forward, let’s make some investments, let’s try to grow our business.’”
Wyett said those investments could mean more hiring and new business locations, but it could take six months to a year before the effects start showing up in economic data.
Meanwhile, for everyday Oklahomans, economic changes in Washington could eventually impact everything from the cost of goods to taxes, savings and investments.
Wyett said it’s important to keep a long-term perspective rather than making financial decisions based on short-term uncertainty.
“We’re way more optimistic than pessimistic; acknowledging the challenges does not mean we’re defeated by those challenges,” Wyett said. “In fact, in one way, if we think about it, that we overcome these challenges in a way that creates opportunities, that means we’ve got some huge opportunities in front of us.”
