The Texas oil and natural gas industry continues to play an extraordinary role in the Lone Star State’s economy, security and stability.
Oil and natural gas are key to Texas’ prosperity
TXOGA President Todd Staples and member company leaders meet with Governor Greg Abbott.
In fiscal year 2022, the industry paid a history-making $24.7 billion in state and local taxes and state royalties — shattering the previous record of just over $16 billion set in 2019 by 54%.
This revenue from oil and natural gas production, pipelines, refineries and LNG facilities translates to roughly $67 million a day that pays for Texas schools, universities, roads, first responders and essential services.
Production taxes and royalties to state funds more than doubled over fiscal year 2021. Production taxes grew by 116% and royalties to state funds increased by 102%. Oil and natural gas production taxes exceeded $10 billion for the first time in Texas history.
Independent school districts and county governments in Texas received $1.65 billion and $608.6 million, respectively, in property taxes from mineral properties producing oil and natural gas, pipelines and gas utilities. Expanded oil and natural gas investment and job-creating activity are the primary reasons behind the $34 billion surplus that Texas has available.
Texas Oil & Gas Association (TXOGA) President Todd Staples said, “This is funding that will go to work for the people of Texas, but growth like this is not guaranteed. Policy can promote prosperity or hinder it. And as much of Western Europe can attest, energy security is national security, and both are directly tied to policy decisions. The United States and its allies depend on Texas’ oil and natural gas producers, pipelines, refiners and exporters to deliver energy stability, even in times of continued global unrest. To continue meeting the nation and the world’s energy needs, we need bold energy policy leadership at every level that treats oil and natural gas as an asset, not a liability.”
To reinforce the importance of the oil and gas industry in the Lone Star State, over 600 Texas energy industry employees and supporters convened in March for Texas Energy Day @ the Capitol. The event urged lawmakers to hold fast to the policies that have allowed Texas to transform the state’s abundant natural resources safely and productively into hundreds of thousands of high-paying, high-skilled jobs, critical tax revenue and energy security.
Staples said that TXOGA had several priorities this legislative session including economic development policy such as House Bill 5, the Texas Jobs & Security Act, which he said would help keep Texas competitive. “For Texas to remain a national economic leader, we must use tools that other states and countries are using to attract businesses to our state, and this legislation will give our local communities a powerful economic tool to attract jobs and investments.”
Staples also noted the need for a policy framework that allows Texas to lead in carbon capture and sequestration: electricity market redesign policy that keeps the grid reliable and rates affordable, policies to fund key regulatory agencies and protection against policy that would adversely impact the Texas oil and natural gas industry’s ability to deliver what the world needs.
As always, TXOGA and its members work closely with lawmakers and key stakeholders to develop policies that promote continued growth, energy choice, global stability and environmental progress. Staples said, “All four allow the oil and natural gas industry to continue building a cleaner, stronger, better future for Texas.”
Energy Day™ is a registered trademark of the Consumer Energy Alliance.
For more information, visit txoga.org.
