US state and local oil and gas revenue sources and uses
Abstract
© 2017 Elsevier Ltd US state and local governments generate revenues from oil and
gas production through a variety of mechanisms. In this paper, we quantify four leading
sources: (1) state taxes levied on the value or volume of oil and gas produced; (2)
local property taxes levied on the value of oil and gas property; (3) oil and gas
lease revenues from state lands; and (4) oil and gas lease revenues from federal lands.
We measure these revenues against the total value of oil and gas produced in the top
16 oil- and gas-producing states using fiscal year 2013 as a benchmark. On average,
state and local governments collect roughly 10% of oil and gas revenue, ranging from
a low of roughly 1% to a high of nearly 40% (not including income taxes). We also
assess the use of these revenues, finding that there is substantial variation among
states. The largest shares of revenue flow to state governments’ current expenditures
and education, followed by local governments. Some states also allocate a portion
of oil and gas revenues to trust funds endowing future government operations and/or
education expenditures.
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https://hdl.handle.net/10161/16751Published Version (Please cite this version)
10.1016/j.enpol.2017.10.002Publication Info
Newell, RG; & Raimi, D (2018). US state and local oil and gas revenue sources and uses. Energy Policy, 112. 10.1016/j.enpol.2017.10.002. Retrieved from https://hdl.handle.net/10161/16751.This is constructed from limited available data and may be imprecise. To cite this
article, please review & use the official citation provided by the journal.
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Richard G. Newell
Adjunct Professor
Dr. Richard G. Newell is the President and CEO of Resources for the Future (RFF),
an independent, nonprofit research institution that improves environmental, energy,
and natural resource decisions through impartial economic research and policy engagement.
From 2009 to 2011, he served as the administrator of the US Energy Information Administration,
the agency responsible for official US government energy statistics and analysis.
Dr. Newell is an adjunct professor at Duke University, where he

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