AMARILLO, TX (KFDA) - Looking over the course of a year, oil and natural gas production tax revenue in Texas increased greatly, with last December’s revenue going up more than 20 percent from this time last year, according to the Texas Comptroller.
There was an increase in production in 2017 and 2018, particularly where the price of oil has stabilized for two years, basically in a row,” said Judy Stark, President of the Panhandle Producers and Royalty Owners Association. “In 2017, that’s where you’ll see your revenue hit 2018, so it was higher in 2018 than it would have been in 2017."
When adding up those oil and gas tax revenues throughout the year, that adds billions of dollars into the state's economy.
"Obviously that benefits the state in many ways like infrastructure, education, so there's a lot of remarkable things and some of things that are on the top list of the legislature,” said Stark.
With more revenue coming into the state, local experts say that can, in turn, trickle down into the Texas Panhandle's economy.
"This year, the state should have several billion extra dollars to work with in this session as opposed to last session. And that should give them much more flexibility in what they can do, which, in turn, should give the city of Amarillo a great deal more flexibility in what they can do for its citizens,” said Leslie Weaver, Oil and Gas Manager of Asset Management at Amarillo National Bank.
On the other end, some state energy reports suggest a stall in increased activity as oil prices declined near the end of the year.
"It stalled for a little while, mainly because of infrastructure,” said Stark.
As for what to expect in 2019, Weaver says the numbers could likely change.
"Oil prices are always fluctuating, as are natural gas prices so we would expect next year there to be some rebound,” said Weaver. “It will come back next year but in the meantime, we need to enjoy the price at the pump while we can.”
Just in December 2018 alone, the state saw close to three billion dollars in state sales tax revenue with just under half a billion of that from oil and natural gas production.