Mike Cantrell shocks the Oklahoma Petroleum Industry by urging the legislature to end a corporate perk that the industry loves.
Mike Cantrell issued the following press release:
For 40 years I’ve been a vocal advocate for Oklahoma’s oil and gas industry. As the state’s largest industry I have always thought that what’s good for oil and gas is good for Oklahoma.
Today I depart from that belief.
The state of Oklahoma is in dire financial straits; in large part because the states oil and gas industry is in a depression, due to low prices.
An industry that has historically contributed up to 30% of the state’s revenue is, by some estimates, now actually taking more from our state than we are contributing.
As a lifelong oilman and a lifelong Oklahoman that, for me, is unacceptable .
I’m not qualified to make a judgement about the efficiency of our state’s spending nor if more cuts are appropriate; but I am embarrassed by the fast growing number of our state’s finest public school teachers that have to take a 2nd or even a third job to make ends meet.
In this tumultuous time, the state’s oil and gas industry should “step up” and lead the way in surrendering all tax credits and even repealing or seriously modifying the “at risk well “provision which was intended to allow small producers to apply for a gross production tax rebate on wells that lose money over a years time. This provision has rarely cost the state more than 2 million a year in the 2 decades of its existence and has kept thousands of wells from being abandoned or even plugged
However, the estimate for 2015 is over 130 million; 83% of which is from applications for the state’s largest companies. These same companies are only paying a 2% rate on new wells ; an “incentive” that is costing the state upwards of 400 million. Taken together they are ” breaking the bank” and must either be repealed or temporarily suspended until our financial condition improves.
Our industry should lead but all tax credits should be eliminated or suspended before the state’s credit rating gets downgraded making a bad situation disastrous.
Mike Cantrell - Bio
Mr. Cantrell is Chairman of the Cantrell Investments LLC, an oil and gas investment company. He was President of Oklahoma Basic Economy Corporation, an Ada, Oklahoma-based oil and gas exploration/production company for over 25 years
Cantrell’s experience in the oil and gas industry includes serving as president of Save Domestic Oil, a national coalition that enforces trade laws regarding oil dumping; President of the Oklahoma Independent Petroleum Association, the state’s largest energy association; Co-founder and Chairman of the Oklahoma Energy Resources Board, the nation’s first oil checkoff program; member of the Industry Advisory Board for the National Association of Royalty Owners; and Executive Committee member for the Texas Alliance of Energy Producers.
Mr. Cantrell also serves the state and his community as a board member for the Oklahoma Foundation for Excellence, Oklahoma Independent Petroleum Association, Oklahomans for Lawsuit Reform and Citizens Bank of Ada.