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Texas Revenues From Oil Production Down 40 Percent From August

Falling oil prices took a bite out of state tax receipts even as crude production continued to expand.

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Source: U.S. Energy Information Administration, based on crude oil production data and preliminary information from state governors’ offices and publicly available information for North Dakota and Texas.

 

Just as Texas was the nation’s biggest beneficiary when crude oil was expensive, it’s taking the biggest hit now that oil is relatively cheap. The latest confirmation comes from a study by the U.S Energy Information Administration (EIA).

The EIA tracked the decline in oil prices from last summer through the start of this year. It then looked at tax revenues, as reported by comptrollers in the country’s top five oil and natural gas producing states — Texas, North Dakota, California, Alaska, and Oklahoma.

“In January of 2015, Texas received $352 million in tax receipts from oil and natural gas production,” says John Krohn, co-author of the study. “If you compare that to the level of tax receipts that the state received in August 2014, there’s a reduction of about 40 percent, because the data that we received from Texas indicated that in August, the state received $583 million.”

Even as the state’s tax revenue fell, oil production continued to rise. Crude production from Texas fields came to nearly 107 million barrels in December — the most recent month for which data are available — up from about 101 million in August.

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Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media’s business reporter, covering the oil...

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