Oklahoma Oil and State Budget

[bucktalk]

Maybe I've missed it..but...I haven't heard much about the positive impact $100.00 per barrel of oil will have on our state's budget. You'd think that price would place our state budget on a much better footing. Any input on this topic would be appreciated.

[lasomeday]

It takes two months before the revenue is paid on production. Then the state has to collect that from the oil companies. You will hear about it in June.

[adaniel]

Every little bit helps. But directly speaking, I don't see $100 oil and subsequent severance tax having that much of an impact on state coffers, considering the $500 million (or however much it is) hole in the budget. OK doesn't produce as much oil as it used to. I can't find the source but the state's oil production is at a 70-80 year low.

We produce way more natural gas. Those prices are a little better than they were last year but not by much. The NYMEX spot price has been bouncing around 4-4.50 lately, and the price paid for OK gas is historically lower than what the national rate is. A state that's more "oily" like Louisiana would probably benefit more from oil prices.

Indirectly, it's probably having a small impact. There are a lot of companies based in the state that are involved in more oil drilling, and these companies pay corporate tax, hire people that pay income tax, buy from suppliers and pay income tax, etc. So its certainly not a bad thing.