ND Cuts Oil Extraction Tax

North Dakota is trying to keep companies drilling for oil despite low prices.

The state’s oil extraction rate was just dropped from 6.5% to 2% on the first 75,000 barrels of a new well for 18 months.

The reduction was approved by the 2009 Legislature, but this is the first time it’s been triggered.

It’s in effect through June or until the average price of a barrel of oil is at $72.50 for a month.