The crude oil boom in the western United States has changed the way states do business. North Dakota is growing so rapidly that the legislature is considering returning to special session to make big investments in new infrastructure. Wyoming now receives more than half its tax dollars from oil and gas companies paying to extract fuel. And big parts of Colorado, California, Texas, Oklahoma and a handful of other states increasingly rely on the energy industry for jobs.

Domestic production peaked in 1986, at 283 million barrels per month, according to the Energy Information Administration. In September 2005, domestic production hit a nadir of just 126 million barrels a month. In the last decade, technological advances, including the increasing production from hydraulic fracturing, has reversed that 20-year decline in crude oil production.

Today, production is back up to 256 million barrels a month, according to the latest EIA figures.

And states are making big bucks because of the increased production through what’s known as severance taxes. In the third quarter of 2005, states took in $1.7 billion in severance taxes, a little more than 1 percent of the total tax revenue received that quarter. In the second quarter of this year, states took in $5.2 billion in severance taxes, about 2 percent of the $259 billion total revenue generated during that three-month stretch.

Here’s where all that domestic crude oil comes from, thanks to our friends at Metric Maps:


Source: @MetricMaps

And here’s where U.S. natural gas production is highest:

Source: @MetricMaps
Source: @MetricMaps

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