News Oil & Gas

2022 Oil and Gas Tax Study shows billions in revenue for North Dakota


BISMARCK, N.D. (KXNET) — Monday, the North Dakota Petroleum Council and Western Dakota Energy Association shared the 2022 update of the Oil and Gas Tax Study to let us know how much tax revenue North Dakota is receiving from the oil and gas industry.

Oil extraction and production tax revenues are over $26 billion for fiscal years 2008 to 2022, with $2.8 billion this year alone.

And, in the past five fiscal years, oil extraction and production taxes made up approximately 51% of all taxes collected by the state.

Since 2008, oil and gas tax revenue has provided billions for water projects and education, as well as infrastructure across the State.

“These are the direct benefits such as the K-12 funding that are provided by the state to the local school districts, or the property tax relief that the state has done, like taking over county’s social services, paying for that. That’s all paid for by oil and gas tax,” said Brent Bogar, research consultant for the study.

Oil and gas taxes also contributed $6.9 billion to the Legacy Fund for the future of North Dakota.

As we’ve reported before, the Legacy Fund must be used to benefit North Dakota directly.

Oil and gas tax revenue also provides funding to Hub Cities, counties, cities, schools, townships, and Impact Grant Funds, in lieu of property tax.

“Since the start of the Bakken, the taxes collected by the state and tallied for this study have just been the production and extraction tax. That does not include the taxes that the industry pays in sales tax and in income tax. So, it’s very easy to say how much we as a state benefit from the taxes that are paid by the oil and gas industry,” said Bogar.

The purpose of this study is to illustrate how the revenue from the Extraction Tax and Gross Production Tax benefits all of North Dakota and also provide details on where and how the funding has been distributed by the State Legislature.


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