Tag Archives: oil revenue

business news, local news

Lower gas prices: more positive than negative

gascosts

Did you see what I saw this morning while driving to one of my four part-time jobs?

The price of regular unleaded gasoline has dipped to less than $2 per gallon in Amarillo.

Good news, yes? Well, I think so.

Motorists such as my wife and me do not enjoying shelling out big bucks for gasoline. Our Prius hybrid has more than paid for itself in fuel efficiency. We’ll keep for as long as we possibly can. Heck, it might live me.

But I get the downside of the lower prices, particularly in states — such as Texas — that rely on oil revenues to fund things such as, oh, state government.

State Rep. Four Price, an Amarillo Republican, told the Rotary Club of Amarillo the other day that the next Texas Legislature is likely to receive some not-so-cheery news from the comptroller’s office when it convenes in January 2017. It will be that oil revenue will be down sharply from the current budget cycle and that the state likely will not have the projected revenue surplus it got when the 2015 Legislature convened.

Gas prices plummet

I get that. I also understand that $100-per-barrel oil is more profitable to pump than, say, $42-per-barrel crude — which is about what it’s drawing these days.

But you know what? I am not going to waste too much emotional energy worrying about those ancillary effects when my household is getting a significant break in its weekly expense obligation.

 

local news, State news, Uncategorized

Oil price plunge: Good for U.S., bad for Texas

It’s become almost a truism that Texas marches to a different cadence than much of the rest of the country.

Take the plunging price of oil and gasoline. Millions upon million of Americans are cheering the good news, that they’re paying less for gas than they were yesterday, let alone a year ago. Meanwhile, Texas oil producers are crying the blues.

And then we have Texas government, which is likely now to face a serious shortfall in revenue derived from oil that’s pulled out of the ground in, say, the Permian Basin and along the Caprock here in the Panhandle.

http://www.texastribune.org/2014/12/19/oil-prices-could-dampen-legislative-session/

What’s good for the rest of the county isn’t necessarily so for Texas. What to do?

Given that I don’t have a particular dog in this hunt — in the form of oil holdings that pay handsome royalties — I’m more than happy to see the price of gas continue to slide downward. It’s at $1.98 per gallon in Amarillo as of right now; it’s subject to change any moment.

The Texas Tribune link attached to this post notes that the state’s new comptroller, Glenn Hager, is facing a tough baptism in state government. He’ll have to produce some revenue forecasts for the next Legislature. At the rate the price of oil is falling, it’s becoming a bit problematic for the comptroller-elect to project anything for the next week, let alone for the next two years.

Gov.-elect Greg Abbott has proposed an ambitious start for his administration that will depend on money. Highway improvements? The amount of that money will depend on oil prices. Public education? Again, the state derives royalty money from oil and natural gas to help pay for public school.

So, while the rest of the country hails the falling price of oil and gasoline, lawmakers and statewide elected officials in Texas, which produces so much of it, are wringing their hands.

Yep, as the promotional slogan goes: Texas is like a whole other country.