North Dakota Shale Operators: Tax Bill Coming Due? This Was Not On Their Bingo Card -- March 13, 2022

Folks may not remember but the state gave a tax break to North Dakota shale operators ... but the bill might be coming due. 

Link to social media. Direct to The Bismarck Tribune. Much more at the link but this is all I need to know now:

The price-triggered tax increase would swell state tax collections by $372 million to $4.09 billion for the 2021-23 budget cycle, according to a revenue analysis done this month by the Legislative Council, which is the research arm of the North Dakota Legislature.

It’s part of a measure lawmakers passed in 2015 that abolished some price-based incentives for the oil industry in exchange for a lower oil tax rate -- from 11.5% to 10%. But the bill also raised the total oil tax to 11% if oil prices rise to $90 a barrel for three consecutive months.

As for me, much ado about nothing. Sometimes I just shake my head, as they say. 

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Access To Capital

This is much more interesting. Link here.

"Imagine Apple simultaneously generating tons of free cash flow, buying back stock and paying a special dividend and complaining about lack of access to capital.

Writer doesn't see any large oil and gas company complaining about needing more capital but it's a talking point regardless."

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Buffett And OXY

Something to talk about. 

Warren Buffett is tracked here.

One link: CNBC overview. 

In the money. 

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For The Archives: A Reminder

Is this why US shale operators are not drilling?