The Texas oil and gas industry soared to new heights in 2023, delivering an unprecedented economic impact that reverberated across the Lone Star State and beyond. According to recently released data from the Texas Oil & Gas Association (TXOGA), the industry’s contribution to state and local coffers reached a record-breaking $26.3 billion in fiscal year 2023, eclipsing all previous records. This financial windfall, composed of state and local taxes and state royalties, underscores the indispensable role played by oil and gas companies in driving Texas’ economic prosperity and bolstering essential public services.
According to TXOGA’s report, the $26.3 billion infusion into state and local budgets translates to $72 million daily for vital sectors such as education, infrastructure, and public safety. Notably, the surge in tax revenue reflects the industry’s sustained investment in Texas, with significant increases observed in state and local sales taxes and property taxes. These financial resources play a pivotal role in fueling Texas’ educational system, with billions directed towards public schools and universities due to the allocation of royalties into the Permanent School Fund and the Permanent University Fund.
“This type of unmatched, repeat economic performance does not happen by accident. Success is the result of non-stop industry innovation, investment and operational efficiencies that shattered a string of oil and natural gas production, supply, refining and export records last year – all while achieving world-leading environmental progress.” – TXOGA President Todd Staples
Furthermore, the economic impact extends beyond fiscal contributions, as evidenced by the industry’s role as a primary job creator and economic engine. TXOGA’s report reveals that over 480,000 Texans were employed directly by the industry in 2023, earning an average salary of $124,000 which is nearly twice the state private sector average. Further, the oil and gas industry supports a vast network of businesses, supporting over 1.4 million jobs statewide.
Texas’ dominance in oil and gas production reached unprecedented levels in 2023, with production records shattered across the board. From crude oil production surpassing 5.6 million barrels per day in October – a new crude oil production record – to natural gas output exceeding 1.0 trillion cubic feet in a single month, also in October and also a new record for natural gas production, Texas solidified its position as the nation’s leading energy producer. Moreover, the state’s refineries set new processing records, emphasizing their critical role in meeting domestic and global energy demands.
The TXOGA’s 2023 Annual Energy and Economic Impact Report paints a compelling portrait of an industry at the pinnacle of its prowess, driving economic prosperity, powering innovation, and ensuring that energy leadership starts and stays in Texas.
