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Texas to see a $4.1 billion drop in tax revenue from oil and gas

Blog Post created by robin.dupre Champion on Oct 13, 2015

Tuesday, Oct. 13, 2015

 

Andy East

Austin American-Statesman Staff

 

The state will collect $2.6 billion less than anticipated in taxes over the next two years largely because of sluggish oil prices, Comptroller Glenn Hegar said Tuesday.

 

Tax revenue will total $110.4 billion — still more than the spending called for by the Legislature, which was capped at $106.2 billion. The revised estimate released Tuesday forecasts a $4.1 billion drop in tax revenue from oil and natural gas production and regulation, compared with the fiscal year that ended in August. But revenue from other sectors of the Texas economy will temper the downturn in oil prices, Hegar said.

 

The projection is based on an estimated per-barrel price of oil of $49.48 during this fiscal year and projects the price-per-barrel to increase to $56.25 in 2017. Crude oil is trading at $46.58.

 

“Oil prices are extremely hard to predict,” Hegar said. “A lot of people try, but it’s not only a national but also an international market and small amounts of news can significantly change the price daily.”

 

View the story on the Web here: Texas to see a $4.1 billion drop in tax revenue from oil and gas | www.statesman.com

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