First of all my sincere thanks to all of those who have served in the armed forces of the United States of America. God Bless you all and Master Sargent William H Fisher my dad… Thank you for serving in Korea and being as good a man out of uniform as you were in.
My goal is to give the residents of the Bakken and anyone next to a rail road a little comfort on the progress of tight oil stabilization or what we refer to as Bakken Oil stabilization. In the same breath I am going to plead with the state of North Dakota www.nd.gov if they truly want to help must make major changes in their tax policies.
I am grateful to Energy Matters www.KFYR.com AM 50 for first asking me to be a part of the show and then being flexible in allowing me to be on when possible. One of the main reason I continue the program is my hope in bringing more insight to the public into many tough issues the gas and oil industry face.
I am fortunate to get a seat at many tables with many influential industry CEOs, Presidents and production planners. It is in these meetings I am always reminded that the government has a role to play in the industry but for the most part the government is to collect taxes from the oil and gas companies’ revenue.
And as politicians talk, the oil and gas companies are already far ahead of them in providing the money and talent needed to make their industry and those they serve a better place.
Too often I feel the state and federal officials think improvements in safety, the environment , and workers security happen because they talk about it or threaten to mandate it. The truth is actually 180 degrees. The gas and oil companies always want what is best for the environment, their workers and the communities they operate in.
So now, here is my challenge to the state and federal government. If you are truly concerned with flaring and the stabilization of tight oil i.e. Bakken crude then give all the oil and gas companies a tax holiday on any and all gas captured, stripped and or sold as a bi-product of tight oil. It cost approximately $60 million just to build a 100,000 barrel a day stabilizing facility not taking into consideration the cost of operations for about $35 million in revenue $3.5 in gross profit and loss at the end of the year.
Here is why: by the time we pay the 28% tax and gas royalties we lose money! You want us to spend our shareholders money and or our private equity on capturing a gas or stripping a gas that we lose money on. If you are serious then stop the taxing this bi-product and be satisfied with the huge windfall you receive from oil.
I know what the process costs and the bottom line is there is little to no money in it. Add in the dramatic fall in the price of oil and “Houston, we have a problem”
So I asking the North Dakota Industrial commission to work with Senator Rich Warden to call a special session and introduce a bill that will give gas and oil companies a tax holiday on any and all gas collected. Otherwise you may find 700,000 less barrels of oil leaving ND each day because of a lack of stabilization.