Category

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

Ease of Doing Business

Exceptional Business Climate: Ranked #1 in Business Friendliness nationally for four consecutive years (2025). Favorable Tax/Regulatory: Low corporate tax rates and efforts to streamline regulations.

Workforce Shortages: A continuous challenge is attracting and retaining a stable workforce, which requires ongoing investment in recruitment strategies and housing.

Global Talent Magnet: Leveraging its business-friendly reputation to attract Foreign Direct Investment (FDI) and global talent, especially in high-growth technology and research fields.

Economic Volatility Risk: Despite a good business climate, state tax revenues (e.g., sales tax) are highly dependent on fluctuating commodity prices (oil/gas), creating budget uncertainty.

Domestic Manufacturing

Niche Manufacturing Strength: Key manufacturing sectors include equipment (e.g., tractors, construction vehicles) and value-added agriculture/oil products (e.g., refined petroleum). High Wages: Manufacturing jobs provide average annual earnings significantly higher than the non-farm average.

Small Sector Scale: Manufacturing comprises a relatively small portion of the economy compared to the dominant energy and agriculture sectors, limiting its buffer against commodity price shocks.

Value-Added Expansion: Opportunity to aggressively invest in value-added processing for its raw materials (e.g., agriculture and energy byproducts) to increase in-state wealth creation.

Tariff Impact on Equipment: Global trade tariffs on materials like steel and aluminum increase costs for energy infrastructure and heavy equipment manufacturing, potentially reducing competitiveness.

Sustainability Initiatives

Carbon Capture Leader: Possesses the world's best geology for permanent carbon capture and storage (CO2​ storage capacity), making it a critical national hub for carbon management. Clean Energy Focus: Actively funding the research and commercialization of clean sustainable energy technologies.

Dependence on Fossil Fuels: The state's economic and political structure is heavily tied to oil, gas, and coal, creating resistance to a rapid, full-scale transition away from fossil fuel revenue.

Critical Minerals Development: Positioning the state as a national leader in domestic lithium extraction from oilfield wastewater, supporting the US goal of strategic mineral independence.

Environmental Backlash: May face national or international pressure (e.g., ESG criteria) due to the high carbon intensity of its dominant energy production, potentially impacting investment and market access.

Balance of Trade & Global Contribution

Strong Trade Surplus: Regularly runs a significant trade surplus, with exports dramatically exceeding imports (e.g., exports >$897M vs imports >$308M in July 2025). Key Export to Canada: Has a deep and essential trade relationship with Canada, its largest trade partner.

High Concentration of Exports: Exports are heavily concentrated in raw and semi-processed commodities (Crude/Refined Petroleum, Tractors, Corn), making it highly sensitive to global commodity price swings.

Export Diversification: Can seek to diversify export markets beyond its top partners and focus on higher-value, specialized goods rather than raw bulk commodities to stabilize revenue.

Agricultural Trade Wars: Its major agricultural exports (soybeans, corn, wheat) are prime targets in global trade disputes, leading to price drops and reduced farm income during trade uncertainties.