In 2023, Texas’ oil and natural gas industry set a historic benchmark by contributing $26.3 billion in state and local taxes and royalties, marking the highest financial input to the state’s economy in history. This substantial contribution underscores the industry’s critical role in bolstering Texas’ economic infrastructure, including funding for public education, infrastructure development, and essential public services.
The Texas Oil & Gas Association (TXOGA) highlighted that this record-breaking contribution translates into an astounding $72 million every day, enriching Texas’ public schools, universities, roads, and first responder services. This financial boon was fueled by a surge in tax revenues, including a significant increase in state and local sales taxes paid by the industry, reflecting the sector’s ongoing investment and robust presence in the state. Notably, a vast majority of the state’s oil and natural gas royalties were allocated to educational funds, bolstering support for Texas public education.
Beyond the financial contributions, the industry played a pivotal role in employment, providing over 480,000 jobs with salaries nearly double that of other private sectors in Texas. This employment has a multiplier effect, generating additional jobs and fostering economic growth across the state. The year was marked by unprecedented achievements in production, with Texas setting new records in crude oil and natural gas outputs, reinforcing its essential position in the U.S. energy landscape amid regulatory challenges and federal environmental policies.
Despite facing regulatory headwinds at the federal level aimed at curbing greenhouse gas emissions and imposing restrictions on oil and gas leases, Texas’ oil and gas production thrived. The state demonstrated resilience and adaptability, outpacing national production levels and refining capacities. The industry’s leaders credit this success to efficiency, innovation, and the ability to navigate through regulatory uncertainties, showcasing the sector’s significant economic and societal contributions to the state and its role in securing energy independence.
This record-setting performance by Texas’ oil and natural gas industry is a testament to its indispensable contributions to the state’s economy, public welfare, and the broader energy security of the nation. As the global energy landscape evolves, the Texas oil and natural gas sector remains a pivotal player, driving economic growth, advancing energy security, and shaping the future of energy both domestically and internationally.