Carpe Diem

‘Windfall oil and gas tax revenues’ in Texas contribute to a $8.8 billion ‘windfall’ state budget surplus

Oil and gas production taxes from areas like the Eagle Ford Shale have pumped  billions into the Texas state coffers in the past two years.  Natural gas producers paid $2.6 billion in state taxes during the last two-year  budget cycle — up nearly 42 percent from the years before. Meanwhile, oil-production tax revenue rose nearly 80 percent to $4.4 billion.

Result? A projected state budget surplus this year of $8.8 billion!

Source.

15 thoughts on “‘Windfall oil and gas tax revenues’ in Texas contribute to a $8.8 billion ‘windfall’ state budget surplus

  1. So as goes the oil so goes Texas it seems, without oil Texas becomes a less dynamic state economy. That’s why Texas can get by without sales taxes, but oil is a finite resource so enjoy the windfall why you can Texas.

    • You mean income taxes as Texas has a 6.75% state sales tax with up to 2% local add on. But there is no state personal income tax.

    • Au contraire, just because you claim that they’re “cutting” it doesn’t make it true. The people in Texas that are protesting against the government wants it EXPANDED. There was a cut but it was an entirely different area. The people wanted all of the cuts restored PLUS expansion to cover handicapped children.

    • Obama is currently confiscating our money with trillions of dollars in tax hikes such as associated with ObamaCare, capital gains, dividends and payroll and he also ran up $6 trillion in debt. We are broke/bankrupt and our credit rating was cut fore the first time. We are foreclosed, we are on food stamps, our home prices have plunged, our household net worth was slashed, household incomes plunged, we are unemployed, the economy is hardly growing and we are at war.. Under such hostile and dire circumstances, the handicapped children need to man-up, crawl out of their welfare hammocks, put down that bottle of Ripple, roll up their sleeves and get to work.

      Hope that helped to clarify things, Ruth.

  2. For every ‘windfall’ we have here due to oil/gas production OPEC countries are having a financial shortfall. The US has wished for this for decades and now its within our grasp but Obama’s strangulating fingers are trying to put off our ‘windfall’. Go figure.

  3. Would you describe CA taxes from Apple or Google s a windfall? TX innovators,financiers and risk takers CREATED the new precision drilling revolution. It’s not a windfall if you created the wind.

  4. It is not a windfall when the government plans on giving people the opportunity to make money by getting out of their way, it is a logical consequence.

  5. How about we reinvest some of this money into the public education system. There is no reason that Texas should be so far behind in this area.

    • How about we reinvest some of this money into the public education system“…

      How about we get rid of that standing joke called the ‘public eduation system‘ instead?

  6. The Obama Administration supports the production of oil and natural gas in the United States.

    The majority of the American budget deficit is due to the Bush-era tax cuts.

    Medicare and Medicaid were created because, however strange it may seem, Americans at the time didn’t like seeing starving old and poor people dying in the streets.

    I suggest you try having a permanent spinal cord injury to see how easy it is for handicapped children, teenagers or adults to “crawl out of their welfare hammocks and get to work.” Most handicapped people want to work, but businesses won’t hire them because they don’t want to pay the money it might take to build a wheelchair ramp or something similar. All it takes is one bad car accident to permanently handicap anyone—even you, McDaddy Watch.

    As far as the death of our society that you forecast, McDaddy Watch, I guess you haven’t noticed that housing values, hiring and other economic indicators are all currently rising. If we’d experienced even one trillion dollars in tax hikes, no one would have the money to eat. It’s a ridiculous statement on the face of it and has no bearing in reality whatsoever.

    Perhaps some reading in economics, history, modern business practices and the lives of the handicapped might illuminate these topics for the august contributors to this forum.

    It’s always easier to live in ignorant bliss, though.

    • Shell just announced that it is writing off Eagle Ford assets and abandoning shale plans. The Bakken is reaching peak production. It looks like the people who are hyping the miracle of fracking will have to look somewhere else for salvation.

  7. Kevin, regarding Texas enjoying its windfall while it can, here’s a factoid regarding the Permian Basin: The Permian Basin has produced over 29 billion barrels of oil and 75 trillion cubic feet of gas and it is estimated by industry experts to contain recoverable oil and natural gas resources exceeding what has been produced over the last 90 years.

    That doesn’t include any of the shales: Cline, Eagle Ford, Barnett et al.

    You should also read up on “peak oil.” It’s not as straightforward as you might think.

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