As Oklahoma’s legislative leaders consider how to balance the state budget, two of the state’s leading energy associations sparred again on Wednesday over the gross production tax.
The Oklahoma Energy Producers Alliance (OEPA) was scheduled to hold a press conference at the State Capitol on Wednesday morning to call for an increase in the state’s gross production tax.
On April 5, OK Energy Today reported on the battle lines drawn by the Oklahoma Oil & Gas Association’s opposition to the OEPA’s proposal to raise Oklahoma’s gross production tax to 7 percent.
The OKOGA responded in a press release issued Wednesday morning with the following statement:
“The 123 horizontal rigs running in the state today equals $23.7 billion in direct and indirect economic activity over the course of a year in Oklahoma. The $23.7 billion in economic activity will generate additional revenue for the state and support hundreds of Oklahoma jobs. If industry is not drilling, this immediate economic impact does not exist. OEPA is not part of this modern energy industry that is driving down unemployment numbers and generating new revenue for the state that will help our schools, roads, and public services in the years to come. Case in point: the vertical rig count in Oklahoma today is one. If OEPA is serious about wanting to help Oklahoma, ask their members how they are contributing to new economic growth that will create jobs and generate new revenue. As Mike Cantrell said in 2014, industry as a whole is benefiting every Oklahoman when we keep drilling wells in Oklahoma.”
“The innovation of horizontal drilling is spurring the oil and natural gas industry’s recovery from two years of depressed commodity prices that resulted in 15,000 Oklahomans being laid off and many companies filing bankruptcy. Now is not the time to increase taxes again. Let the energy industry’s return fuel a strong recovery for Oklahoma.”
