OKLAHOMA CITY (AP) — Overall collections to the state treasury last month were nearly 5% below collections from August 2019, driven mostly by a slump in oil and gas prices, Oklahoma Treasurer Randy McDaniel said Friday.
The decline in August marked the fifth month since February that total receipts were lower than those from the same month in the prior year, McDaniel reported.
Tax collections from oil and natural gas production fell by 46.3% from, or $35.1 million, from collections in August 2019. It marks the 12th consecutive month that gross production receipts were less than the same month of the prior year.
“The gross receipts report provides evidence of the challenges facing Oklahoma’s anchor industry,” McDaniel said. “Oil and gas tax receipts have dropped by more than $430 million during the past year. We will likely see a growing ripple effect into other sectors of the economy.”
McDaniel noted because of a lag in production tax collections, oil and gas receipts in August reflect production activity during June when West Texas Intermediate crude oil averaged $38.11 per barrel. Prices increased to $42.34 in August, but drilling activity has plummeted since last year and several Oklahoma-based oil and gas companies have announced layoffs.