Revenue from Oklahoma’s oil and gas production taxes reached a record high in fiscal 2022, topping $1.5 billion, the state treasurer reported on Wednesday.
As prices for the commodities spiked, the taxes generated $1.53 billion, up nearly 103% in the fiscal year that ended June 30 compared to fiscal 2021.
“Inflationary forces are a significant concern for consumers, but Oklahoma’s macro economy is benefitting from current energy prices and low unemployment,” Treasurer Randy McDaniel said in a statement.
After
June collections of $171.2 million in Oklahoma also set a one-month record. They were based on April production when crude oil averaged $101.78 per barrel in Cushing and natural gas averaged $6.60 per million BTU at Henry Hub, according to the treasurer’s statement.
Oklahoma, a top-five producer of those energy commodities, is not alone in setting revenue records.
In Texas, oil production tax revenue of $5.058 billion so far in fiscal 2022, which ends Aug. 31, is already 30% higher than the previous record of $3.89 billion set in fiscal 2019. The state’s natural gas production tax has generated $3.412 billion, blowing past the previous all-time high of $2.68 billion reached in fiscal 2008.
Overall fiscal 2022 tax revenue in Oklahoma totaled $16.46 billion, marking a 15% increase over fiscal 2021. Gross individual and corporate income tax revenue was up 8.6% at $5.78 billion, while sales and use taxes generated nearly $6.6 billion, an increase of 13.3%.
“Economic activity remains strong as reflected in sales and use tax receipts,” McDaniel said.
