Benefits of Oil & Natural Gas

No matter where you live in Texas, the oil and natural gas industry benefits you. The industry anchors our economy by creating high-paying jobs and by generating revenues unmatched by other industries in Texas.

In FY 2020, the Texas oil and natural gas industry paid paid $13.9 billion in state and local taxes and state royalties, funds that directly support Texas schools, teachers, roads, infrastructure and essential services. This is the equivalent of $38 million each day. The total from 2007 – 2020 is over $162 billion.

Oil and natural gas tax and royalty revenue is used to support education, transportation, healthcare and infrastructure through the Economic Stabilization Fund (commonly known as the Rainy Day Fund), the Permanent School Fund (PSF) and the Permanent University Fund (PUF) – all of which are funded almost exclusively with taxes and state royalties paid by the oil and natural gas industry.

In 2020, 99% of the state’s oil and natural gas royalties were deposited into the Permanent School Fund and the Permanent University Fund, which support Texas public education.  The PUF received $771 million and the PSF received $942 million.  The Rainy Day Fund received $1.657 billion from oil and natural gas taxes.

In 2020, Texas school districts received more than $2 billion in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities.  Counties received $688.4 million in these property taxes.

It doesn’t stop there. The oil and natural gas industry is central to our lives, producing products and materials that we use every day like plastics, medicines, computers, life-saving devices and much more.