North Dakota’s High Taxes Create More Energy Tension in Bakken
North Dakota produces more crude oil per capita than other any large oil-producing state in the country, including nearly 10 times more than Texas. So on Friday, when the state released new oil production data for May, it hurt.
Between January and May North Dakota’s crude oil production plummeted 40%, according to data released late last week by the state, outpacing the 10% overall decline in U.S. production over the same period.
The size of the drop in the state’s production — from 1.4 million barrels per day (b/d) at the start of the year to 860,000 b/d by May — could exceed the oil production decline in Texas in both percentage terms and outright, even though Texas produces four times more oil.
To read more Forbe’s Scott Carpenter, click here
Click here for May 2020 Production Report
Click here for July 2020 Bakken Director’s Cut
Last week, Bruin E&P filed for bankruptcy, which has become a trend in the Bakken since other major North Dakota-focused producers like Whiting Petroleum Corporation filed for bankruptcy protection on April 1st.
These recent issues are only part of the problem. Elected and appointed leaders in North Dakota continue to create more friction and tension between oil and gas and people of North Dakota. Sensational and aggressive language from leadership has created polarizing energy issues in discourse and policy.
Back in February, the state issued a letter to a number of oil and gas companies outlining how they must pay money they had previously deducted from royalties owed to the agency for developing state-owned minerals. This prompted a terse response from the North Dakota Petroleum Council.
Fast forward to today, The Forum News Service, requested information on who the oil and gas companies are in the Bakken who owe monies. According to The Forum,
“Thirty-four oil and gas companies operating in North Dakota have not paid tens of millions of dollars in overdue gas royalty payments owed to the state for public school funding. Many are waiting for a drawn-out court case to unfold as interest and penalties accumulate on their tabs. Most of the companies maintain out-of-state headquarters, but a few are based in North Dakota, including Dickinson’s Armstrong Operating, which is owned by U.S. Rep. Kelly Armstrong’s father, Mike.”
Click here for full article and full list of companies, click here
Group of Senators Submit Letter to Let the Wind PTC Expire
A group of U.S. Senators have submitted a letter to Senator Chuck Grassley (R-IA), Chairman of the Senate Finance Committee which has jurisdiction over tax policy, urging him to oppose another wind production tax credit (PTC) extension.
Shelley Moore Capito (R-WV), Lamar Alexander (R-TN), Kevin Cramer (R-ND), John Hoeven (R-ND), John Barrasso (R-WY), Mike Enzi (R-WY), James Lankford (R-OK), Pat Toomey (R-PA), and Jim Inhofe (R-OK) all signed the letter.
The wind PTC, which a project can claim for the first ten years of operation, was first enacted in 1992 and scheduled to expire on July 1, 1999. Since 1999, it has been extended 12 times. Most recently, the wind PTC was extended for one year as part of last December’s appropriations package. Senator Cramer and his colleagues have been working to ensure it expires this year and are looking for ways to support reliable sources of energy like coal.
Revenues and Regulations to be Discussed in Greeley, Weld County
Content producer The Crude Life will host a panel and discussion about the oil and gas industry 6:30-8 p.m. Wednesday at Becker Safety and Supply, 128 30th St., Unit B, in Greeley.
The discussion is titled, “Regulations Gone Wild or The New Normal?”.
The event will also serve as a live recording session of the “Living The Crude Life” program. The event will be recorded for radio, podcast and video distribution. It is free to attend but is limited to 30 people.
The panel will include two expert guests — Weld County commissioner chairman Mike Freeman and Meridian Energy Group, Inc. executive vice president and chief revenue officer Dennis Pungitore — and an audience of industry leaders, professionals and energy enthusiasts.
The final portion of the event will feature a question-and-answer session with the audience.
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
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