Oklahoma took in $1 billion in gross receipts in December, a 12% increase for the month that was fueled in part by a nearly 43% increase in taxes levied on gross oil and natural gas production, said State Treasurer Ken Miller.
Miller reported last Friday that gross receipts grew at a rate of 6.2% during the 2017 calendar year, totaling $11.4 billion, $667.6 million more than in 2016. Gross production taxes on oil and gas accounted for $537.2 million of the 2017 total, a 53.4% increase ($187 million) from the previous year.
Meanwhile, collections on gross production taxes for oil and gas totaled $56.2 million in December, a 42.7% increase ($16.8 million) year/year, and a 6.5% increase ($3.4 million) from November 2017. Total gross receipts for December 2017 were $107.9 million higher than December 2016.
“What a difference a year can make,” Miller said. “At this time last year, calendar year gross receipts were down by more than 7% with every major revenue stream showing contraction. This year, we show across-the-board growth with an encouraging trend line.”
According to Miller’s office, monthly receipts in 2017 were higher than the same month of the prior year in all but one month, with the rate of increase generally trending higher with each passing month.
Oklahoma’s general fund receives less than half of the state’s gross receipts, with the remainder allocated to cities and counties in the form of rebates and refunds. Additional revenue is placed into off-the-top earmarks to other state funds.
Last month, analysts with Evercore ISI reported that onshore permitting activity by exploration and production (E&P) companies was surging above multi-year highs. By mid-December, Oklahoma was experiencing a 50% increase in permitting activity compared to year-to-date figures in 2016.
In an annual global survey of energy executives released last November, the Fraser Institute found that Oklahoma ranked behind only Texas as the most attractive jurisdiction in the world for oil and gas investment.
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