The following op-ed was written by Todd Staples, president of the Texas Oil & Gas Association:
American energy leadership starts in Texas. This is the undeniable conclusion from the Texas Oil & Gas Association’s annual Energy & Economic Impact Report, which outlines the industry’s enormous impact on our state and local economies.
Indeed, 2023 was such a blockbuster year that the Texas oil and natural gas industry rewrote the record books for tax revenue, oil production, exports and refining.
On the economic front, the Texas oil and natural gas industry paid a record $26.3 billion in state and local taxes and state royalties in 2023 – the highest total in history. This translates to an astonishing $72 million a day that directly funds our public schools, universities, roads, first responders and other essential services. These funds benefit every single Texan whether you live in the oil patch or not.
For context, the $26.3 billion in Texas oil and natural gas state and local tax revenue exceeded the total general fund revenues of 36 states in fiscal year (FY) 2023.
Our report also revealed that more than 480,000 Texans have a job in oil and natural gas, earning an average of $124,000 per year – nearly twice the average paid by the rest of Texas’ private sector.
Texas school districts received $2.81 billion in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities. Counties received an additional $885.6 million in these property taxes.
As in years’ past, public education received a major infusion of funds from oil and natural gas royalties in FY 2023, with Texas’ Permanent School Fund and Permanent University Fund each receiving $1.8 billion. In addition, our state’s Rainy Day Fund and State Highway Fund also each received $3.3 billion.
This type of unmatched, repeat economic performance does not happen by accident. Success is the result of non-stop industry innovation, investment and operational efficiencies that shattered a string of oil and natural gas production, supply, refining and export records last year.
Texas hit production records in six of 12 months in 2023, producing as much as 5.6 million barrels per day of crude oil in October 2023 – more than 42% of the nation’s total and the highest monthly oil production total ever.
New record-highs in natural gas marketed production occurred in seven of 12 months in 2023, and in October eclipsed 1.0 trillion cubic feet in a single month for the first time ever, accounting for nearly 30% of U.S. natural gas production.
Texas refineries set two new processing records in 2023, processing a record 5.6 million barrels of crude oil per day in July 2023, and producing and exporting record amounts of natural gas liquids (NGLs) in 2023. Texas also broke records for crude oil supply and crude oil and condensate exports last year.
These numbers are staggering, and even more impressive is the fact that while the United States is the world’s number one producer of oil and natural gas – led by Texas – we also lead the world in emission reductions and environmental progress.
Yet, policies coming out of Washington continue to throw roadblocks in the way of world-leading environmental efforts and unmatched responsibility in oil and natural gas development.
Delays with permitting and liquified natural gas (LNG) export projects’ approvals, canceled pipeline projects, and slow-playing state primacy for permitting carbon storage wells are incoherent, inconsistent and ill-conceived regulations that slow and discourage investment, hurt American consumers, and stifle our ability to deliver energy freedom and security around the world.
Calls to end oil and natural gas, or to delay development, are calls for lower quality schools, fewer roads and lower quality universities, and calls for higher costs for electricity, scarcity of products and for higher burdens for consumers.
We cannot take for granted that this industry can continue to rewrite its record book in the face of policies blatantly designed to undermine progress.
The record-breaking performance of the Texas oil and natural gas industry amounts to more than phenomenal statistical achievements. The natural resources, fuels and essential products produced here are saving lives, shaping communities, growing economies, and restoring stability.
This past year’s achievements define Texas oil and natural gas’ impact in ways never conceived just a few years ago and demonstrates and that our nation, our economy and our world are better for what’s happening here in the Texas oil patch.
With so much uncertainty in the world, the need for reliable, responsibly produced energy from a stable trading partner has never been more crucial. Texas is that trade partner, and at every level, we need policies that ensure that the American energy leadership that starts in Texas, stays in Texas.