The Texas Oil & Gas Association (TXOGA) released its annual Energy & Economic Impact Report highlighting the industry’s continued and unmatched economic impact, the Lone Star State’s global energy leadership, and what is needed to continue meeting our nation and the world’s energy needs.
In Fiscal Year (FY) 2022, the Texas oil and natural gas industry paid $24.7 billion in state and local taxes and state royalties—by far the highest total in Texas history—shattering the previous record of just over $16 billion set in 2019 by 54%.
$24.7 billion translates to roughly $67 million every day that pays for Texas’ public schools, universities, roads, first responders and other essential services. Production taxes and royalties to state funds more than doubled over FY 2021. Production taxes grew by $5.8 billion, a 116% increase and royalties to state funds increased by $2.2 billion, a 102% increase. Oil and natural gas production taxes exceeded $10 billion for the first time in Texas history.
In 2022, 99% of the state’s oil and natural gas royalties were deposited into the Public School Fund and the Public University Fund, which support Texas public education. Each fund received $2.1 billion—more than double the amounts from last year. The Rainy Day Fund received $1.5 billion from oil and natural gas production taxes. The value of these two funds now stand at an estimated $56.8 billion and $28.8 billion respectively.
In FY 2022, Texas school districts received $1.65 billion in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities. Counties received $608.6 million in these property taxes.
In 2022, the industry employed 443,000 Texans who earned an average $115,300 each—roughly 40% higher than the average pay in other private sectors. And for every direct job in the industry, conservative estimates indicate that an additional 2.2 indirect jobs are created. In total, 1.4 million Texans’ jobs ultimately derive from the state’s oil and natural gas industry.
Following the release of the report, state leaders issued the following statements:
“Energy is at the center of Texas’ booming economy, and the historic numbers in TXOGA’s report showcase the undeniable hard work of the 1.4 million Texans employed in our mighty oil and gas industry,” said Governor Greg Abbott. “Texas is—and always will be—a pro-energy state, and this report reflects our determination to protect energy jobs and bolster oil and gas production across our great state. Together, we are keeping Texas the energy capital of America and fostering a brighter economic future for generations of Texans.”
“The Texas economy is the 9th largest in the world, and it would not be possible without the immense contribution of our oil and gas industry,” said Lieutenant Governor Dan Patrick. “For Texas to remain strong, we must continue to embrace oil and gas development, which provides affordable and reliable energy for Texans and for all of America.”
“The oil and natural gas industry is a major driver of Texas’ prosperity, directly funding our public education and transportation systems along with other crucial state services,” said Speaker Dade Phelan. “We must continue to fight for Texas energy by advocating for common sense policies that encourage increased domestic production to provide consumers with abundant and reliable energy.”
“Texas’ robust oil and natural gas industry is essential to meeting our growing energy needs and provides billions in tax revenues that directly contribute to our economic prosperity,” said Comptroller Glenn Hegar. “The Lone Star State’s economic resiliency and continued growth would not be possible if not for this critical industry, which is why I will continue to fight to ensure the oil and gas sector remains vibrant and healthy.”
“The Texas economy is ranked 9th in the world largely due to the robust oil and gas industry,” said Land Commissioner Dawn Buckingham. “I will ensure the General Land Office remains steadfast in our defense of oil and gas on state lands. We will not allow federal overreach to weaken our ability to fund public education.”
“The oil and gas industry is the economic powerhouse of Texas’ economy,” said Railroad Commission Chairman Christi Craddick. “I applaud TXOGA’s reporting and thank the industry for providing jobs, funding schools and roads, and producing the raw materials that we depend on every day in this country. After a record-breaking year, Texas continues to lead in energy.”
“Oil and gas is the lifeblood of our economy, with the industry contributing $67 million daily in taxes and royalties, funding our state’s necessary functions from education to law enforcement,” said Railroad Commissioner Wayne Christian. “Thank you to TXOGA for releasing this annual report that provides the facts clearly illustrating how Texas oil and gas fuels the ‘Texas Miracle’ with job creation, economic growth, grid reliability, and national security.”
“The oil and natural gas industry is a cornerstone of the Texas economy, providing thousands of jobs and billions in revenue to the state,” said Railroad Commissioner Jim Wright. “As the 2022 Energy & Economic Impact Report shows, the importance of the Texas energy industry extends far beyond our state’s borders and serves a crucial role in providing energy security for our nation and our allies around the globe.”