Oklahoma's bill raises concerns over ESG practices

Oklahoma's state treasurer is worried about a new bill that could affect the state's energy sector. The proposed Senate Bill 714 aims to change how the state manages financial institutions that oppose oil and gas companies. Currently, the state treasurer controls this process, but the bill would transfer that power to the state Attorney General's office. Treasurer Todd Russ expressed concerns that this change could lower standards for identifying banks that cannot do business with the state. These banks are currently barred from state contracts if they are seen as harmful to Oklahoma's energy industry. Russ believes that moving oversight away from the treasurer could lead to issues with financial management. He emphasized that Oklahoma should focus solely on financial performance and not let outside influences sway investments for political reasons. The state wants to protect its oil and gas interests, which are vital to its economy. The Attorney General's office argued that the treasurer was ineffective in defending the existing Energy Discrimination Act. This act is intended to stop state contracts with financial institutions that discriminate against the oil and gas sector. Senator Dave Rader, the bill's sponsor, plans to amend the legislation. Proposed changes include clarifying what counts as a boycott against energy companies and how costs are calculated for potential losses. The bill is set to be voted on in the Senate by March 27 before moving to the House of Representatives.