Strong oil prices to spur higher taxes for ND drillers

BISMARCK, N.D. (AP) — North Dakota’s tax commissioner says oil producers almost certainly will be paying higher state taxes for at least three months beginning June 1, 2022, due to strong oil prices. The increase in state oil tax collections is possible because of a state law that adjusts North Dakota’s oil extraction tax when the three-month average price of a barrel of oil is above a specified “trigger” price of $94.69 a barrel. WTI crude has been above the price trigger since Feb. 28, 2022. Tax Commissioner Brian Kroshus says “it’s essentially a given that the oil extraction tax trigger will go into effect June 1.”