Journal Article

Higher Oil Prices Will Likely Increase Severance Tax Revenues in Rocky Mountain States


Abstract: The Iran conflict that began in February triggered a historically large energy market disruption, leading to a substantial increase in oil prices. Although higher oil prices may present challenges for households and businesses, Rocky Mountain states’ budgets—especially Wyoming and New Mexico—stand to gain from additional severance tax revenue related to elevated oil prices.

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Provider: Federal Reserve Bank of Kansas City

Part of Series: Rocky Mountain Economist

Publication Date: 2026-05-06