Share “Energy industry tax incentives considered”

Energy industry tax incentives considered

Some policymakers and industry observers are questioning whether the oil and gas industry should continue to receive tax incentives.
by Adam Wilmoth Published: March 29, 2012
Advertisement

Blatt pointed out that tax rebates to the state energy companies for 2010 and 2011 totaled $297 million, nearly twice the estimated amount of $150 million.

Producers typically pay a 7 percent gross production tax on the oil and natural gas they recover within the state. They then apply for rebates based on the various tax incentives. After rebates are applied, producers using horizontal drilling can see their gross production tax rate reduced to 1 percent for the first 48 months of production. Horizontal wells tend to peak within weeks of production and taper off significantly within several months.

While producers have benefitted from the tax reduction, they have been using the savings to create jobs, Bannister said. Oil and gas industry employment surged 17 percent in 2011.

“When you talk about creating jobs and creating tax dollars, the oil and gas industry is doing its part,” Bannister said. “Eliminating and cutting tax incentives that encourage job growth in Oklahoma is not in the best interest of the state.”

The tax credit changes have been discussed in the Legislature as part of Senate Bill 1234.

by Adam Wilmoth
Energy Editor
Adam Wilmoth returned to The Oklahoman as energy editor in 2012 after working for four years in public relations. He previously spent seven years as a business reporter at The Oklahoman, including five years covering the state's energy sector....
+ show more


When you talk about creating jobs and creating tax dollars, the oil and gas industry is doing its part. Eliminating and cutting tax incentives that encourage job growth in Oklahoma is not in the best interest of the state.”

Cody Bannister

Spokesman for the Oklahoma Independent Petroleum Association

Trending Now


AROUND THE WEB

  1. 1
    Mark Zuckerberg Reveals His Hiring Secret
  2. 2
    Dallas 6th Grader Captures Teacher's Profanity-Laced Lecture On Cell Phone
  3. 3
    Does the State Department trust Hillary Clinton in email flap? Signs of doubt …
  4. 4
    NTSB report: Engines accidentally shut down in crash that killed former Oklahoma QB Steve Davis
  5. 5
    VIDEO: Russell Westbrook runs length of the court, throws down two-handed dunk against Sixers
+ show more