Long-Term Economic Planning Needed in Oil- and Gas-Producing States

The fiscal and economic condition of the Southwestern States (Texas, Oklahoma, and Louisiana) has long been inextricably linked to oil and gas activities. However, the region's oil and gas reserves and production have been declining since the early 1970's, and prospects for this trend to reverse are not good. Yet continued heavy reliance on decreasing resources has caused little concern for diversification planning, perhaps largely because rising energy prices are stimulating the region's economy and generating increased public sector revenues. Although the region currently is fiscally and economically healthy, troublesome trends indicate that long-range planning is needed.