As Oklahoma faces a shortfall of nearly $900 million in revenue for FY 2018, oil and gas gross revenue continues to climb as sales and income taxes decline
While last year’s drop of $1.3 billion was blamed primarily on the impact of a prolonged downturn in the energy industry, this year’s shortfall appears to be caused by the use of nonrecurring revenue in the current year budget.
“Gross receipts to the Treasury show the ongoing impact of the prolonged downturn in the energy industry on all four major revenue streams,” said Miller. “However, the overall rate of decline has slowed during each of the past three months as oil and gas gross production collections have shown moderate increases.”
Gross receipts for December are $901.8 million, down by more than $47 million, or 5 percent, from December 2015. It is the smallest December bottom line since 2010, according to the Oklahoma State Treasurer’s Report.
Collections from gross production taxes on oil and natural gas are higher than the same month of the prior year for a third consecutive month. December gross production receipts total $39.4 million, up by $1.7 million, or 4.4 percent, from December 2015. Monthly receipts are based on production activity from October when the average price of benchmark West Texas Intermediate crude oil was $49.78 per barrel.