Source: Shale Magazine
Texas oil and natural gas drives record economic growth, funding education and essential services. The industry leads in environmental innovation while securing America’s energy future.
The Texas oil and natural gas industry continues to set new benchmarks for success, recently achieving an all-time high of $27.3 billion paid in state and local taxes and state royalties in fiscal year 2024. This historic milestone, highlighted in the Texas Oil & Gas Association’s (TXOGA) Annual Energy & Economic Impact Report (EEIR), demonstrates the industry’s role in fueling Texas’ economy and securing its position as a global energy leader.
“Texas oil and natural gas makes an outsized and unmatched contribution to the financial might of our state–and the energy leadership of our nation,” said TXOGA President Todd Staples.
Economic Impact: A Game-Changer for Texas
The $27.3 billion contributed by the industry represents nearly $75 million daily that funds essential services in Texas such as public schools, universities, roads, and first responders. Notably, the amount surpasses the entire annual tax revenue of 34 U.S. states combined. Public education reaped significant benefits, with Texas school districts receiving $2.92 billion directly.
Moreover, the Permanent School Fund and Permanent University Fund, the largest education endowment in the nation, received $1.5 billion and $1.9 billion, respectively. These investments ensure Texas students reap the benefits of the state’s abundant natural resources for generations.
Texas and counties were paid $1.03 billion in property taxes from oil and natural gas production, pipelines and gas utilities.
Staples emphasized, “The oil and natural gas industry’s success in delivering for the Lone Star State–a success shared by every Texan–is the direct result of policy, partnerships, and perseverance.”
Job Creation and Economic Ripple Effects
In 2024, the industry directly employed over 492,000 Texans with an average salary of nearly $130,000, which is 76% higher than the state’s private-sector average. These high-paying jobs support nearly 1.4 million indirect jobs across Texas, with economic analyses suggesting the employment multiplier could approach three additional jobs per direct role.
Environmental Progress: Leading the Way
Texas oil and gas companies have paired economic achievements with significant environmental progress. Methane emissions in the Permian Basin dropped by 26% in 2023 compared to the previous year, according to S&P Global Commodity Insights. Flaring rates in Texas have also declined by 60% since 2019, with operators aiming to eliminate routine flaring entirely by 2030.
“No one produces, transports, and refines oil and natural gas with the same commitment to safety and protecting the environment as American operators,” Staples said, citing initiatives like the Texas Methane & Flaring Coalition.
Driving Global Energy Leadership
Texas continues to cement its role as the backbone of the U.S. energy sector, producing 43% of the nation’s crude oil and nearly 30% of its natural gas. With record-breaking production in the Permian Basin and robust pipeline, refining, processing and exporting infrastructure, Texas is well-positioned to meet growing global energy demand.
“Clearly, the world needs more, not less, of reliable, responsibly produced oil and natural gas, and Texas is leading the way,” Staples said.
As Texas continues to surpass milestones, the oil and natural gas industry remains a cornerstone of the state’s economic, educational, and environmental progress, as demonstrated in the 2024 EEIR.
