Low oil prices may affect state economy

OKLAHOMA CITY (AP) – Oklahoma’s treasurer says the state’s economy performed well to close out 2014, but that continued low oil prices will eventually start to drag down other sources of revenue like income and sales taxes.

Treasurer Ken Miller released figures on Wednesday that show overall collections by the state in December and in 2014 exceeded those from the prior year. But he warned that December oil and gas production taxes reflect oil field activity from October, when oil prices were around $85 per barrel.

At the end of last month, he says the same oil was selling for less than $55 per barrel.

The Oklahoma Legislature already is projected to have about $300 million less to spend on next year’s budget, a hole that will grow if oil prices remain depressed.