State Revenue Could Be Harmed By Low Gas Prices
Tuesday, September 19th 2006, 10:44 am
By: News On 6
OKLAHOMA CITY (AP) -- Industry leaders say declines in the price of natural gas could depress drilling activity and reduce Oklahoma production tax revenue.
Natural gas prices slipped steadily throughout the first half of the year and dropped 40 percent over the past seven weeks.
The state collected a record of just more than $1-billion last year in gross production taxes.
Executive director Jeramy Rich of the Oklahoma Independent Petroleum Association says he expects to see less new drilling.