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Published VersionCC BY V4.0, Open Access
Journal article
Drilling down: Oil prices, oil production, and production taxes in North Dakota
Resources Policy, Vol.110, pp.1-9
2025
Appears in UniSC Supported Open Access Outputs
Abstract
This paper examines the relationships between cycles in oil prices, oil output, and production tax revenue in North Dakota, the third-largest oil-producing state in the United States. The oil industry contributed over 50% to North Dakota's total tax revenue from 2018 to 2022, highlighting the importance of understanding these relationships. The analysis proceeds in two stages. First, we use the Hamilton filter to decompose the three time series to extract their cyclical components. Then, we employ Shannon transfer entropy, an information-theoretic non-parametric technique, to analyze the lead-lag relationships between these cycles. The results show significant information flow from oil price changes to oil production tax revenue and oil output, suggesting that oil market dynamics in North Dakota were primarily driven by price changes; the most considerable flow of information occurred contemporaneously. The results also point to limited feedback from production levels to prices. Overall, these findings underscore the critical role of oil prices in shaping the state's oil production and fiscal outcomes.
Details
- Title
- Drilling down: Oil prices, oil production, and production taxes in North Dakota
- Authors
- Dragan Miljkovic - North Dakota State UniversityPuneet Vatsa (Corresponding Author) - University of the Sunshine Coast, Queensland, School of Business and Creative Industries
- Publication details
- Resources Policy, Vol.110, pp.1-9
- Publisher
- Elsevier Ltd
- Date published
- 2025
- DOI
- 10.1016/j.resourpol.2025.105748
- ISSN
- 1873-7641; 0301-4207
- Copyright note
- © 2025 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
- Data Availability
- Data will be made available on request.
- Grant note
- Dragan Miljkovic received funding for this project through USDA Hatch state grant ND03303.
- Organisation Unit
- School of Business and Creative Industries
- Language
- English
- Record Identifier
- 991168209002621
- Output Type
- Journal article
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