Breitling Oil and Gas Morning Podcast #164 10-5-12

Texas Comptroller Susan Combs reported last week that for fiscal year 2012 the state had collected more than $44 billion in tax revenue, $3.7 billion more than she had projected.

A big boost to state revenues is coming from oil and natural gas production taxes, the result of feverish drilling and fracking activity in West Texas’ Permian Basin and the Eagle Ford Shale, the rich formation that stretches from the border with Mexico to East Texas.   According to the comptroller’s office, oil and gas production tax collections in the first 11 months of fiscal 2012 were 44 percent higher than during the same period in 2011.

The oil and gas activity also is boosting sales tax revenue, up 12.6% as producers buy new drilling and pipeline equipment.

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