North Dakota Revenue
The oil and natural gas industry also generates revenue for North Dakota landowners, schools, roads and other public services.
In 2010, the industry paid nearly $750 million to North Dakota in oil and gas production and extraction taxes, $85.2 million in royalties and another $295 million in lease bonuses to trust funds managed by the North Dakota State Land Department (Source: North Dakota Petroleum Council). And a recent North Dakota State University study reports that the petroleum industry paid $821.8 million in state and local taxes in 2009.
As production continues to grow, the state will experience parallel growth through tax collections, royalty revenues, lease bonuses and production and extraction taxes.
Taxes paid by the North Dakota oil and gas industry help fund numerous programs and initiatives throughout the state. Additionally, these taxes go right back into helping counties, cities, schools, and numerous programs and services throughout the state including water development, health care, information technology, higher education, and many, many more. This revenue has already provided property tax relief to homeowners, reduced personal and corporate income taxes, and supported a variety of public services including education, water and community development. Also, the state has maintained a budget surplus, due largely to the growing revenue stream from oil and natural gas production. (Source: North Dakota Petroleum Council).
Furthermore, with pro-development energy policies, North Dakota oil and gas development could continue to grow, producing over $6.3 billion in total government revenue and over $2.2 billion in state revenue by 2035 (Source: Wood Mackenzie).
North Dakota can continue to generate jobs and revenue for thousands of Americans with development in the Bakken and Three Forks shale formations. This tremdendous growth in domestic oil and natural gas development not only drives America's economy forward, but also increases our nation's energy security.
Read more:
