Oil Price Surge Fuels State Tax Revenues Amid Global Uncertainty
High oil prices are generating significant tax revenues for several U.S. states, including Alaska, New Mexico, and Texas, providing a much-needed boost to state finances.
In Alaska, higher-than-expected oil-related tax collections have erased a major budget hole and may even produce a surplus by the end of fiscal year 2026, which ended on June 30. State analysts estimated that Alaskan oil would sell for an average $75.26 per barrel in FY 2026, but current prices are expected to reach just under $80 per barrel.
Other states, such as North Dakota and New Mexico, are also benefiting from the surge in oil revenues. In Texas, oil production tax collections have exceeded expectations by 9.7% through the first 11 months of FY 2026, with a record-breaking monthly total of $736 million collected in June.