Oil and natural gas revenues in Texas has declined steadily since the bust two years ago, with The Texas Oil and Gas Association (TXOGA) reporting a 40% decline since 2014.
The Texas budget relies on sales taxes, which account for 58% of all statewide tax collections. As the shale boom subsided, the decrease in spending in the oil and gas sector has affected the state budget.
Oil & Gas Revenues
2014: $15.7 billion
2016: 13.8 billion
2016: $9.4 billion
The state comptroller reports that oil production and regulation tax revenue for 2016 was $1.7 billion with natural gas tax revenue was $579 million, 33.6 percent below the CRE projection of $871 million.
“Even in a down market during fiscal year 2016, the Texas oil and natural gas industry contributed an average of $26 million a day to state and local revenue. The oil and natural gas industry has paid $108 billion in state and local property taxes and state royalties since 2007– a figure that would finance the current annual state budgets for the University of Texas-Austin and Texas A&M University, combined, for well over 100 years.” - Todd Staples, president of TXOGA