Oklahoma State University research concludes that tax incentives have had no effect on Oklahoma drilling activity.

Oklahoma State University research concludes that tax incentives have had no effect on Oklahoma drilling activity.

“In this paper, we build on this existing literature by examining whether Oklahoma’s severance tax reduction has led to disparate effects for horizontal versus conventional drilling as compared with its neighboring states. These states, particularly Texas, share a similar oil and gas resource potential, which we will use in this paper in order to isolate the effect of the tax policy on development from differences in development due to resource disparities. Our findings suggest that the Oklahoma tax exemption has not increased horizontal drilling activity.” ~excerpt from the study

Read the entire study here. http://bit.ly/2ErwujI

OEPA in Kingfisher

Here are a few of the decline curves plus the bottom hole pressure survey that shows the actual hit in real time.  The well with the pressure survey (Wakeman) actually got “bumped” (our term) from a November, 2015 frac that caused a loss in oil production (30 BOPM to 5 BOPM) (See decline curve), then “hit” in May, 2016 which killed it.  It has partially recovered.

The King-Vieth well was just hit again by another frac, so May oil and gas will be down and water up.

The Perdue 17-2 has seen an increase in production due to the hit.  But, as noted, the expenses have skyrocketed due to the frac hit (We had frac sand in the pump the last time it was pulled).

Steve Altman – Kingfisher County


Below are links to documents of the decline curve and the other evidence of loss of production because of horizontal frac jobs: