KC Fed: NM and WY Budgets May Benefit From HIgh Oil Prices

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In the latest edition of the Rocky Mountain Economist, the Federal Reserve Bank of Kansas City takes a deep dive into the economics behind the recent spike in oil prices caused by the war in Iran, and notes that there may be a silver lining in all of this for the Rocky Mountain energy producing states. In the article, the KC Fed’s economists illustrate the correlation between oil prices and severance tax collections, and note that New Mexico and Wyoming in particular stand to benefit, from a budgetary perspective, from the current conflict-driven increases in oil prices. The below exhibit is reproduced from the KC Fed’s article.

Source: Federal Reserve Bank of Kansas City

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