Arkansas’ gross revenue from natural gas severance taxes so far this year is trending higher than during 2011, which turned out to be a record year for gas severance tax revenue in the Natural State.
From January through May, natural gas severance tax revenue adds up to nearly $24.98 million. During the first five months of 2011 the state received nearly $23.14 million. During all of 2011, the state collected a record of nearly $58.91 million. The total collected last year was $40.96 million.
During the first quarter of this year, gas production subject to severance tax in Arkansas was nearly 277.24 Bcf.
While 2011 was a record year for severance tax collected, actual production of gas subject to severance tax was higher in 2012. For full-year 2011 the volume subject to tax was more than 1.09 Tcf, and in 2012 it was more than 1.15 Tcf. However, natural gas prices were significantly lower a year ago than they are now.
If production of gas subject to severance tax this year were to continue at the same level as the first quarter, 2013 would see production of nearly 1.11 Tcf subject to severance tax, based on Arkansas Department of Finance and Administration data.
Spot prices at the Henry Hub are up from just over $2/MMBtu a year ago to around $3.79/MMBtu.
In its May Short Term Energy Outlook, the Energy Information Administration said it expects the Henry Hub natural gas spot price, which averaged $2.75/MMBtu in 2012, will average $3.80/MMBtu in 2013 and $4.00/MMBtu in 2014, about 27 cents/MMBtu and 40 cents/MMBtu higher than forecast in the previous month’s outlook, respectively (see Daily GPI, May 8).
Â©Copyright 2013Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.
© 2021 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |