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Bill aims to increase North Dakota’s oil presence through tax incentives • North Dakota Monitor


North Dakota is seeking to encourage oil drilling outside of the Bakken Formation with a new bill that aims to take advantage of the Trump administration’s push for U.S. energy dominance. The bill, supported by Ron Ness of the North Dakota Petroleum Council, would expand an oil extraction tax exemption to other oil production zones in the state. The Bakken Formation has been highly productive, but there are potential oil reserves in other areas as well.

The proposed legislation would increase the amount of oil taxed at a lower rate and incentivize drilling by smaller operators to find new resources. The state’s Tax Department estimates a revenue loss of $2.2 million over two fiscal years, but advocates believe that this could attract more drilling activity and increase the tax base in the long run.

There is little opposition to the bill, which aims to compete with the Permian Basin of Texas and New Mexico by diversifying North Dakota’s oil production. With former North Dakota Governor Doug Burgum now leading the Department of the Interior, supporters believe that the timing is right to take advantage of the “Trump effect” on energy policies.

Overall, the bill is seen as a way to support North Dakota’s oil industry and ensure continued growth and competitiveness in the sector. The House Finance and Taxation Committee has yet to take action on the proposed legislation.

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