Advertisement

Year-over-year oil, gas tax revenue up in Oklahoma

For full-year 2016, however, state tax collections from oil and natural gas are down about 3 percent from the previous year.

By Daniel J. Graeber
Year-over-year oil, gas tax revenue up in Oklahoma
Oklahoma reports year-on-year gains in oil and gas tax collections, but full year 2016 showed a downturn. Photo by photostock77/Shutterstock

May 5 (UPI) -- Compared with this time last year, oil and gas sector revenue for Oklahoma expanded, though full-year input to state coffers remains depressed, the state said.

Oklahoma is one of the top contributors to total U.S. oil production, accounting for about 5 percent of the nation's total output. Lower crude oil prices curbed exploration and production activity last year and the state's economy faltered as a result.

Advertisement

The Oklahoma State Treasury Department reported production taxes from the oil and gas sector for March were $47.9 million, more than double what they were for March last year.

First quarter 2017 crude oil prices fared better than last year and energy companies are investing more on exploration and production as a result, particularly in U.S. shale basins. Oilfield services company Baker Hughes in its weekly rig count report, which reflects exploration and production activity, showed counts in Oklahoma are twice as high as they were at this point last year.

RELATED Oil-rich Alberta lands energy agreement with Japan

Elsewhere, the treasury reported the unemployment rate in the state was lower than the national average for the second month in a row and a gauge of business confidence found sentiments were above neutral for the third month in a row.

Advertisement

State Treasurer Keith Miller said some indicators were still in the decline, but the economy is on the mend.

"The average decline in gross receipts has slowed and the unemployment rate is shrinking as rig counts rise along with business conditions and consumer confidence," he said in a statement.

RELATED Crude oil prices lose grip on psychological barrier of $50 per barrel

This week, Continental Resources, which has its headquarters in Oklahoma, reported mixed results for the first quarter. The company reported production in the state's SCOOP shale basin was moderately lower when compared with year-on-year figures and with the fourth quarter.

Gross tax receipts for Oklahoma declined last month compared with figures for March 2016, a downturn that followed two straight months for marginal growth. For full-year 2016, oil and gas production tax collections were $391.5 million, down 2.9 percent from the previous year.

RELATED Divestment, retooling strategy has paid off, Shell says

RELATED More oil activity expected in Kurdish Iraq, DNO says

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement