Oklahoma State Treasurer Todd Russ reports the state is seeing an increase in revenue from its Gross Production Tax on oil and gas.
In his April report released this week, the treasurer said the tax revenue equaled $88 million for April and the division saw an overall increase over March of $11.45 million or 11.5% gain.
“After the last four months GPT saw a rebound, reflecting stronger output and rising commodity prices. The energy sector remains cyclical after showing a decline this month, however gains point to improving conditions, increased profitability, and renewed investment. The hint of recovery supports state revenue and reinforces economic stability in Oklahoma’s energy-producing regions—an essential driver of the state’s economy.”
The monthly report indicated West Texas Intermediate crude oil prices appear to have stabilized at higher levels and the rig count in the state is “gradually rising in response.” Russ said a higher rig count suggests energy firms are “gaining confidence in price stability” leading to more capital deployment and employment in upstream operations.
The Treasurer explained that natural gas prices continue to be in the low $3 range ending the month at $3.299, up from $3.223. Cost pressures again declined this month with the Consumer Price Index for gas down 0.2% and fuel oil down 1.3%.