Sen. Mike Schulz
Senate committee approves landmark ‘Oklahoma Energy
Jobs Act of 2017’
Bill anticipated to generate significant revenue
from increased oil & gas drilling
An Oklahoma Senate committee on Tuesday gave approval
to a major jobs bill from Senate President Pro Tempore Mike
Schulz that is anticipated to spur a significant increase
in oil and gas drilling in the state of Oklahoma, creating thousands
of new energy jobs and boosting state and local revenues.
“The best way to generate more revenue from oil and gas
production is to get more rigs drilling in Oklahoma. The Energy
Jobs Act will unlock billions in oil and gas investment in Oklahoma,
creating jobs and generating new revenue for the state,”
said Schulz, R-Altus.
Senate Bill 867, also known as the Oklahoma Energy Jobs Act of
2017, allows multiunit, or long-lateral, drilling in all rock
formations, not just shale. Currently, Oklahoma is the only state
that restricts long-lateral drilling based on the type of rock
formation. The bill also provides safeguards for property owners,
mineral owners, and all operators.
By industry estimates, in its first year SB 867 will generate
approximately $490 million in new royalty payments, more than
$229 million in new state and local revenues (combined gross production
tax, sales tax, and income tax generated from increased drilling
activity), and create nearly 6,000 new jobs in the oil and gas
sector. Additionally, the measure is expected to unlock nearly
$6 billion in investment from major oil and gas companies.
“This bill levels the playing field with other states, costs
the state nothing, and makes Oklahoma a more attractive place
for investment. This is an issue we’ve worked on for years
in the Senate, and I’m glad we finally have an agreement
among stakeholders. This is one of the most important and impactful
economic development ideas to be considered by the Legislature
in years,” Schulz said. “I appreciate my Senate colleagues
advancing the measure and look forward to this bill ultimately
Marlatt, chairman of the Senate Energy Committee, hailed the
passage of SB 867 as a win for the state, industry, and land owners.
“We’ll see more rigs drilling in Oklahoma if this
bill becomes law. That in turn means more jobs and more revenue
for the state of Oklahoma. Bottom line: SB 867 is a win for the
industry, a win for mineral owners, and it’s a win for the
state of Oklahoma,” Marlatt, R-Woodward said.
more information contact:
Sen. Marlatt: 405-521-5626