The latest report from Texas Comptroller Glenn Hegar showcases the ever-changing role that oil and gas plays in driving the economic engine of the Lone Star State. According to the report, extraction activities including oil and gas in Texas reached a staggering $235.6 billion in the past year. This number alone accounted for just under 10% of the state’s industry Gross Domestic Product (GDP).
Taking these numbers out from the state picture and expanding it to national, the aforementioned data demonstrates Texas’ outsized role in energy production nationwide. These extraction activities accounted for $457.4 billion nationally this past year. Texas contributed more than half of that number, roughly 51.5%, proving to be the energy extraction powerhouse of America.
The oil production tax is central to Texas’ revenue base in order for the state to function. In April 2024, that tax witnessed a significant surge, reaching $518 million. This was a notable 15% increase from the same month last year – April 2023. Sales tax in Texas totaled nearly $4 billion last month, with energy extraction making up more than 12% of that number.
To match these remarkable revenue numbers, according to the 2023 U.S. Energy and Employment Report (EER), energy employs a sizable portion of Texas residents, boasting over 930,000 workers statewide in 2022 alone. This total represented 11.5% of all American energy jobs, spanning various sectors within the field.
Texas represents a diverse and robust employment ecosystem – ranging from transmission to distribution to storage, among many other jobs.
From 2021 to 2022 alone, Texas saw an increase of 55,785 energy jobs, which was a 6.3% rise in employment. The labor market in Texas is highly dependent upon the energy industry and its production, of which the majority is oil and gas-related, totaling about 7% of all of the state’s employment figures.
Based on data from that same 2023 EER, fuel mining and extraction dominated energy employment in Texas, accounting for 66% of all fuel-related jobs. Specifically, the oil and petroleum sector employs just over 180,000, while natural gas adds just over 100,000 more jobs, underscoring the industry’s wide-ranging impact on Texas’ statewide employment.
Both reports highlight the indispensable role of the oil and gas industry in driving the economic growth of both Texas and the United States at large. From robust revenue to strong employment numbers, the oil and gas sector plays a central part in providing Texans and Americans with affordable, reliable energy, while also helping to make our state and nation cleaner, stronger, and better.
