In West Texas, there lies land that doesn’t just fuel the state’s economy, but also powers the nation’s energy agenda. The Permian Basin, a region long equated with oil and natural gas production, stands as a beacon of Texas’ unrivaled prowess in energy production. Beyond its massive oil fields, miles of pipelines, and several processing plants, paired with refineries and other critical energy infrastructure, the Permian Basin plays a pivotal role in shaping the economic landscape of Texas.
In fiscal year 2023, the Texas oil and natural gas industry achieved marks never before seen, contributing $26.3 billion in state and local taxes along with state royalties, according to the Texas Oil & Gas Association (TXOGA). This figure not only reflects the industry’s strong performance but also emphasizes its indispensable role in funding critical public services and infrastructure projects across Texas.
Heading this economic juggernaut is the Permian Basin, where prosperity resonates through its counties and school districts. According to recent data from TXOGA, the oil and gas property taxes paid in Permian Basin counties and independent school districts (ISDs) amounted to $488.5 million and $1.7 billion, respectively. These two numbers demonstrate the massive financial contributions to the economy from the energy sector, and they also highlight the relationship between energy development and local communities.
Reeves County was the top county for taxes paid by industry within the Permian Basin, with oil and natural gas property taxes totaling $98.9 million, yielding a significant 85.3% of the county’s tax base.
Similarly, the Pecos-Barstow-Toyah Independent School District received $275.2 million in oil and natural gas property taxes. These funds came from 82.6% of the district’s tax base.
Beyond its economic impact both locally and across Texas, the Permian Basin also serves as a central force in the state’s energy security apparatus, as it’s responsible for a significant chunk of America’s crude oil and natural gas. In 2023 alone, Texas refineries processed a record 5.6 million barrels of crude oil per day.
Additionally, the Permian Basin’s strategic significance extends beyond our borders, with liquefied natural gas (LNG) exports seeing a rise to 6.8 billion cubic feet per day in 2023. This surge in exports both bolstered global energy security and strengthened diplomatic ties, as Texas remains a reliable supplier of energy to America’s allies across the globe.
As Todd Staples, President of TXOGA, puts it, “Success is the result of non-stop industry innovation, investment, and operational efficiencies.” The Permian Basin embodies this mindset, serving as a constant reminder of innovation and resilience in the ever-evolving energy landscape.
