Oil producers in North Dakota, including the Bakken shale play should benefit from a production tax holiday triggered by low crude oil prices.

Please click here for a complimentary copy of our Bakken Oil Tax Incentives report. Oil producers in North Dakota, including the Bakken shale play should benefit from a production tax holiday triggered by low crude oil prices. The state has two triggers for current and existing wells linked to the WTI benchmark price minus $2.50 per barrel. For 2015, that trigger has been set at $52.59 per barrel. The trigger has already been in effect for one month, causing all new wells to be taxed at 2% of production value instead of the standard 6.5%. If the WTI benchmark minus $2.50 per barrel stays below the trigger for five consecutive months, new and existing wells will receive a tax holiday for the entire 6.5% production tax for the following 18 months. This would equate to a tax benefit ranging from $2.60 to $3.00 per barrel through late 2016. 

Please click here for a complimentary copy of our report.