Revenue to the state from Oklahoma's oil and gas business increased only slightly in July, according to State Treasurer Todd Russ.
In its monthly report, Russ' office reported Monday that revenue from the state's gross production tax (GPT) was $83.7 million, up just $600,000 from the previous month.
Since the beginning of the year, GPT revenue has dropped sharply from its $160 million level in January, a sign of slowing demand for oil and gas, Russ said.
WTI Crude oil prices dropped about $1 from June, averaging $81.80 a barrel, according to the report.
More: Dell announces worldwide layoffs; effect on OKC office unknown
Industry forecasts predicted higher gains in GPT, a severance tax imposed on producers for the extraction of oil and natural gas. Russ' report noted that the Organization of the Petroleum Exporting Countries, or OPEC, lowered demand growth forecasts for the remainder of the year, "as prices appear stuck between war premium and oil demand outlooks."
The International Energy Agency predicts low global oil production demand will continue into 2025 as production needs have fallen by about half since last year, according to a report released this month. The industry depends heavily on its U.S. market, which makes up about one-third of its consumers for global gasoline.
The average price of gasoline across the United States increased to $3.60 in July from $3.58 last month, the treasurer's report said.
Russ also reported that the unemployment rate in Oklahoma increased slightly in July to 4.3%, compared to 3.4% in June. The average U.S. rate for a 30-year fixed rate mortgage in July was 6.85%, down 1.01% from the previous month.
This article originally appeared on Oklahoman: Oklahoma oil and gas production, revenue, slows in July 2024