State Treasurer bans banks competing with energy, oil and gas
Another so-called ban on "woke" culture in Oklahoma is now hitting the state's relationship with outside banks.
OKLAHOMA CITY (KFOR) - Another so-called ban on "woke" culture in Oklahoma is now hitting the state's relationship with outside banks.
Already reported by The Oklahoman, the ban applies thirteen financial institutions after the state evaluated their Environmental, Social, and Governance (ESG) policies as it applies to HB2034.
According to the state law passed during the 2022 legislative session, financial institutions that boycott oil and gas companies may be excluded from doing business with the state.
State Treasurer Todd Russ told KFOR he is committed to upholding the Oklahoma Energy Discrimination Elimination Act, which declares the oil-and-gas industry a "vita part" of the state's economy , adding that companies that do business with the state should not boycott the industry.
The resulting list targets some of the largest financial institutions in the country, including Blackrock, Wells Fargo & Co., JPMorgan Chase & Co., Bank of America, and State Street.
The ban is already shaking up Stillwater, related to the city's plans to invest in new infrastructure in it's communities.
"[We are planning for] streetlights, heating and air units and our municipal building and out public library," said Stillwater's mayor, Will Joyce, also saying the city was supposed to get a loan to be paid back by the energy's savings that would be credited from the projects.
"Unfortunately, we're not able to use them now, and the next lowest bidder would actually raise our costs on the project by about $1.2 million [dollars]," he added.
It's a price that has sent Stillwater back to the drawing board, looking for ways to offset the costs or search for a new bank.
"[It] potentially makes it more difficult for us as a community to find the funding we need to keep out insfrastructure up to speed and provide the resources that our city expects."
State Treasurer Todd Russ said the goal is to protect Oklahoma from international institutions and large money managers looking to pivot away from oil and gas.
"The reason it might cost cities and towns millions of dollars is because these large banks [are] punishing states likes Oklahoma, because we're energy producing states."
Climate consultant Jordan Haedtler said the move is a heavy handed approach that could raise costs and financial risk to the state.
"The list [is] 13 companies that are not boycotting fossil fuels at all," he said.
"What this law is doing is essentially instructing banks that they have to conduct their business in a certain way or else they'll lose contracts with the state of Oklahoma."
The full list of affected banks is available to the public on the treasurer’s website: https://www.ok.gov/treasurer/