Fall is just around the corner, and across Texas, children are returning to school. While this time of year can be stressful and expensive for many across the country, fortunately Texas’ thriving oil and natural gas industry is helping fund education programs, schools and colleges across the state.
In 2022, the Texas oil and natural gas sector contributed a substantial $24.7 billion in state and local taxes and state royalties. These funds play a direct and pivotal role in providing crucial support for various essential services in Texas such as schools and education, infrastructure enhancement, public safety, and other indispensable community needs.
Remarkably, when considering the span from 2007 to 2022, the cumulative contribution from the sector soars to an impressive $203 billion. This substantial sum underscores the industry’s enduring commitment to fueling Texas’ progress and well-being.
And according to a 2022 report by the Texas Oil & Gas Association (TXOGA), 99% of the state’s oil and natural gas royalties went into either the Permanent University Fund (PUF) or the Permanent School Fund (PSF), which widely support Texas public education.
In 2022, royalties paid to the state from oil and natural gas activity contributed $2.1 billion to both the PUF and the PSF. Through this support, the PSF has ballooned to a whopping $55.6 billion, the largest educational endowment in the nation, while the PUF currently stands at a staggering $39.6 billion.
Furthermore, Texas independent school districts were direct recipients of $1.65 billion derived from property taxes levied on mineral properties engaged in the extraction of oil and natural gas, pipelines, and gas utilities.
Specifically, Midland ISD in West Texas was the largest receiver of funds from mineral properties producing oil and natural gas, pipeline, and gas utilities, bringing in $113.3 million.
“Oil and natural gas play an undeniable role in helping fund education in Texas, and industry remains committed to not only educating the workforce of tomorrow, but being the trusted partner that Texans can rely on,” said TXOGA President Todd Staples.
