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$27 Billion in Taxes and Royalties Fuel Schools, Jobs, and Energy Security
In Texas, progress is measured by results, not rhetoric. Once again, the oil and natural gas industry delivered. New data from the Texas Oil & Gas Association (TXOGA) show the industry paid $27.0 billion in state and local taxes and state royalties in fiscal year 2025, the second-highest total in state history. That equates to nearly $74 million every day funding schools, roads, first responders, and essential public services across Texas.
Since 2007, the industry has contributed more than a quarter of a trillion dollars in state and local taxes and royalties. These figures do not include payroll for some of the highest-paying jobs in Texas, taxes on facilities and equipment, or the broader economic ripple effects that support communities statewide.
Education remains a primary beneficiary. In FY 2025, oil and natural gas royalties delivered $1.72 billion to the Permanent University Fund and $1.40 billion to the Permanent School Fund. Together, these funds exceed $100 billion in value, with the Permanent School Fund alone standing as the largest educational endowment in the nation. At the same time, more than 85 percent of all revenue ever deposited into the Texas Rainy Day Fund – which currently stands at roughly $27 billion – has come from oil and natural gas production taxes, reinforcing long-term fiscal stability.
The industry’s local impact is equally clear. Texas school districts received $2.6 billion in property taxes tied to oil and natural gas production, while counties received an additional $1 billion. All across Texas, energy development continues to translate directly into classrooms, emergency services, and infrastructure.
Behind these contributions are people. In FY 2025, the industry employed more than 495,500 Texans earning an average salary of $133,095, nearly 70 percent higher than the private-sector average. These jobs support families and generate significant economic activity.
Operational performance matched the economic impact. Texas set new records for crude oil and natural gas production, driven largely by continued innovation in the Permian Basin. Exports of crude oil, LNG, and natural gas also reached record levels, supported by expanding pipeline and export infrastructure that reinforces America’s energy leadership.
Despite market challenges, the fundamentals remain strong. Texas energy markets are adjusting, not breaking, and long-term investments continue to pay dividends for the economy and consumers alike.
The facts are clear. Texas runs on oil and natural gas, powered by skilled men and women whose work keeps the economy moving and communities secure. In fiscal year 2025, the industry once again proved it is the power behind Texas’ progress.
