IDEAS home Printed from https://ideas.repec.org/p/okl/wpaper/1701.html
   My bibliography  Save this paper

Oklahoma Oil and Gas Severance Taxes: A Comparative Analysis

Author

Listed:
  • Mary N. Gade

    (Oklahoma State University)

  • Karen Maguire

    (Oklahoma State Univeristy)

  • Francis Makamu

    (Oklahoma State University)

Abstract

Oklahoma assesses a production tax of seven percent on the extraction of oil, natural gas, and other minerals. However, since July 2002, it has taxed production from horizontal wells at only one percent for the first 48 months of production. This is a significant tax incentive relative to its neighboring states, Texas and Kansas, particularly considering the limited evidence as to the effectiveness of severance tax incentives for increasing in-state development of immobile resources. This paper empirically examines whether the severance tax incentive has encouraged horizontal development in Oklahoma relative to Texas and Kansas. Our findings indicate that the Oklahoma tax exemption has not had a significant influence on horizontal drilling.

Suggested Citation

  • Mary N. Gade & Karen Maguire & Francis Makamu, 2016. "Oklahoma Oil and Gas Severance Taxes: A Comparative Analysis," Economics Working Paper Series 1701, Oklahoma State University, Department of Economics and Legal Studies in Business.
    • Handle: RePEc:okl:wpaper:1701
    as

    Download full text from publisher

    File URL: https://business.okstate.edu/site-files/docs/ecls-working-papers/OKSWPS1701R1.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Severance Tax; Oil and Natural Gas; Hydraulic Fracturing;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:okl:wpaper:1701. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Harounan Kazianga (email available below). General contact details of provider: https://edirc.repec.org/data/sboksus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.