DALLAS — Oil and gas tax revenue in the major oil producing states has fallen sharply, led by a 40% reduction in Texas, according to a report from the U.S. Energy Information Administration.
Texas collected $352 million in oil and gas tax revenue in January 2015, based on data from the Texas State Comptroller's Office. That represents a nearly 40% drop from the $583 million collected in August.
During that time, the price of West Texas Intermediate crude declined by about half on the Nymex Exchange. Despite the price collapse, EIA estimates production in Texas increased, growing from 88 million barrels to 107 million barrels from January to December 2014.
North Dakota' s tax revenue from oil and natural gas production decreased from $323 million in August 2014 to $254 million in January, a 21% drop, according to EIA. Monthly production in the Bakken Shale region of the state continued to increase through December, EIA said.
Alaska's oil and gas production tax revenue has fallen nearly 76%, from $108 million in August to $26 million in January, the EIA said. The state's 2015 revenue projections assumed oil prices at $105 per barrel.
The oil and natural gas production tax represents one of the four main components of petroleum revenue for the state, the EIA said. The others are corporate income taxes, property taxes, and royalties collected by the Alaska Permanent Fund Corp.
Oklahoma's production tax revenue fell 30%, from $62 million in August to $43 million in January, the EIA said. The Sooner State's production was relatively flat during this period.
Although California produces more oil than both Alaska and Oklahoma, its economy is much larger, making it relatively less affected by changes in oil and natural gas prices and production, the EIA said.
Another report on March 13 from the International Energy Agency suggested that the glut of crude supplies and tightening storage capacity in the U.S. may cause prices to weaken further.
Oil production in the U.S. increased by 115,000 barrels a day in February, according to the IEA.
"On the face of it, the oil price appears to be stabilizing. What a precarious balance it is, however," the report said. "Behind the facade of stability, the rebalancing triggered by the price collapse has yet to run its course, and it might be overly optimistic to expect it to proceed smoothly."