TxOGA: Oil and gas impact on Texas economy is extraordinary

Oil

Riding a level of oil and natural gas prices not seen in at least eight years, Texas oil and gas producers enjoyed a banner year in 2022 and in return contributed record amounts to not only the state treasury but that of local counties and schools.

“I continue to be awestruck by the extraordinary role oil and natural gas play in our state and national economy,” stated Todd Staples, president of the Texas Oil and Gas Association in discussing the association’s Annual Energy & Economic Impact Report.

Some takeaways from the report:

  • The Texas oil and natural gas industry paid $24.7 billion in state and local taxes and state royalties in Fiscal Year 2022, shattering the previous record of just more than $16 billion paid in 2019 by 54%.
  • That $24.7 billion translates to roughly $67 million every day that funds the state’s public schools, universities, roads, first responders and other services.
  • Permian Basin schools and counties benefited significantly from the revenues paid by the state’s oil and gas industry, with counties receiving $320.4 million in property taxes and school districts receiving $867.2 million. Reeves County led the state with $44.9 million, 58.4% of its tax base. Midland County was second with $31.9 million, 30.3% of its tax base. Midland Independent School District led the state with $113.3 million, 32.2% of its tax base, followed by Pecos-Barstow-Toyah with $108.8 million, 65.1% of its tax base. Grady ISD had the highest percentage of its tax base from oil and gas property taxes at 92.4%, receiving $36.7 million.
  • Oil and natural gas production taxes exceeded $10 billion for the first time in Texas history, surging by $5.8 billion or 116% while royalties to state funds rose by $2.2 billion or 102%.
  • In FY 2022, the oil and gas industry employed 443,000 Texans earning an average of $115,300 each. For every direct oil and gas job, another 2.2 indirect jobs are created per direct employee. In total, 1.4 million Texans’ jobs were ultimately derived from the state’s oil and gas industry.

Staples stressed that Texas and its oil and gas industry have a bright future, but that bright future is not assured.

Source: Mrt.com

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