Energy money flowing to Oklahma coffers reflects economic benefit, industry group says

As debate about Oklahoma’s gross production tax continues, the state’s economic report, issued this week by state Treasurer Ken Miller, demonstrates the “important relationship” between the energy business and the state’s economy, the Oklahoma Oil & Gas Association said Tuesday.
by Adam Wilmoth Modified: May 7, 2014 at 8:00 pm •  Published: May 6, 2014

The Oklahoma economic report issued this week has added more discussion to the ongoing debate over the state’s gross production tax.

State Treasurer Ken Miller said Monday the state’s monthly collections of $1.32 billion are up 3.3 percent from this time last year. April’s growth brings 12-month collections to $11.6 billion, up 3.5 percent from the year-ago period.

“These numbers indicate Oklahoma’s economic expansion continues,” Miller said. “As is historically the case in April, most of the money is from income tax collections. However, the largest percentage increases this month are from gross production and motor vehicle receipts.”

Miller said higher energy prices in February helped drive gross production collections higher in April. Gross production payments are made two months following the production and sale of the oil and natural gas.

“Oklahoma’s energy industry continues to boost the state’s economic health,” he said.

Representatives from the state’s oil and natural gas industry saw the report as confirmation that increased drilling throughout the state is leading to a continued economic benefit.

Oklahoma Oil & Gas Association President Chad Warmington said the report is an example of how the state is benefiting from the current 1 percent tax on the first 48 months of production from the state’s horizontal wells.

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....
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