Texas oil and gas industry sets new record in 2019
According to recent data from the Texas Oil & Gas Association (TXOGA), the Texas oil and natural gas industry paid more than $16 billion in state and local taxes and state royalties in fiscal year 2019 -- the highest total in Texas history. TXOGA President Todd Staples shared the new report and provided a closer look at how Texas uses oil and natural gas tax revenue to benefit all Texans.
"Despite challenges in the global marketplace, state and local taxes and state royalties paid by the Texas oil and natural gas industry shattered records last year -- exceeding $16 billion," Staples said. "Continuous innovation and policies that encourage safe, responsible energy development are driving our nation, our state and our communities to new heights.
"Oil and natural gas does more than fuel our cars, power our homes and businesses, form the building blocks of our everyday goods and secure our nation. Taxes paid by the oil and natural gas industry support teachers and schools, build roads, boost essential and emergency services, improve health care facilities and bolster our state's infrastructure. Since 2007, the oil and natural gas industry has paid more than $149 billion in state and local taxes and state royalties. That's money that benefits every Texan, whether you live near the oil patch or not."
Staples detailed how oil and natural gas tax and royalty revenue is used to support education, transportation, health care and infrastructure through the State Highway Fund, the Economic Stabilization Fund (commonly known as the Rainy Day Fund), the Permanent School Fund and the Permanent University Fund -- all of which are funded with taxes and state royalties paid by the oil and natural gas industry.
"The reach and impact our state can make with oil and natural gas activity here in Texas is incredible," he said.
Other than interest from the Rainy Day Fund itself, 100 percent of the money in the fund comes from taxes paid by oil and natural gas companies. During the last legislative session, Staples noted lawmakers appropriated more than $6 billion from the state's Rainy Day Fund for many essential programs and initiatives, including:
- Over $1.1 billion to the Texas Teacher Retirement System, with half this amount to be invested in the pension fund and the other half financing a "13th check" of up to $2,000 for retired Texas teachers.
- $807 million to the Texas Education Agency to help school districts affected by Hurricane Harvey, including easing the financial losses to school district property values and remediating school campuses damaged in the storm.
- $840 million to the Texas Water Development Board to develop and update flood risk maps across Texas and provide grant funding for flood-related projects.
- $445 million to the Health and Human Services Commission to improve state hospital facilities.
- $125 million for grants to counties to plan, maintain and reconstruct roads affected by oil and gas development.
For more information, visit www.txoga.org or call (512) 478-6631.