Texas Royalties & Taxes Drop Dramatically

by Elizabeth Alford on February 21, 2017

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.

Related: Texas Schools Fight to Survive

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

Read more at txoga.org

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