Our Industry
Economic Benefits
Tax revenue generated by robust oil and natural gas activity across Texas continues to be a game-changer for Texans, providing billions of dollars in funding for our state’s public schools and universities, roads, first responders, and essential services. The indispensable role this industry plays in Texas’ continued economic successes underscores the importance of policies that encourage responsible development of our natural resources.
And, according to recently released tax collections data from Texas Comptroller Glenn Hegar, Texas oil and natural gas producers are paying record amounts in production taxes to the State of Texas. In April 2022, Texas oil producers paid a record $666 million to the state in oil production taxes, the highest amount in history. At $595 million, May 2022 collections were almost as high. Similarly, the state’s natural gas producers paid $413 million in natural gas production taxes in May, the highest amount in history. These monthly amounts are remarkable in that they exceed the dollars paid of some entire past years’ revenues.
Fiscal Year 2022 was a record breaking, blockbuster year for the Texas oil and natural gas industry, which contributed $24.7 billion in state and local taxes and state royalties. This revenue from oil and natural gas production, pipelines, refineries and LNG facilities translates into about $67 million each day that pay for our schools, universities, roads, first responders and essential services.
Since 2007, when TXOGA first started compiling this data, the Texas oil and natural gas industry has paid more than $203.4 billion in state and local taxes and state royalties, a figure that doesn’t include the hundreds of billions of dollars in payroll for some of the highest paying jobs in the state and the economic ripple effect of the industry on other sectors of the economy.
Oil and natural gas royalties to state funds, particularly the Permanent University Fund and Permanent School Fund, widely support Texas public education. In FY 2022, each fund received over $2.1 billion.
The Texas oil and natural gas industry is also the primary funding source for the Economic Stabilization (“Rainy Day”) Fund, contributing more than $28.1 billion since the fund’s inception in 1987.
Legislators have appropriated funds from the ESF 114 times, the first of which was to fund public education in Texas. The sum of all appropriations totals $18.2 billion.
Without the direct funding from taxes paid by the Texas oil and natural gas industry, support for retired teachers, disaster recovery, healthcare services, and numerous other priority items would not have received the substantial dollars allocated to meet essential needs.
“There is no substitute for oil and natural gas and a strong, robust industry benefits every Texan".
Todd Staples
TXOGA president
Fueling High-Paying Jobs
Texas oil and natural gas industry jobs continue to be good for Texas as well as for the families and communities these jobs support. In FY 2022, the industry employed 442,966 Texans, and every direct job in the Texas oil and natural gas industry creates an additional 2.2 jobs elsewhere in the Texas economy. In total, direct oil and natural gas employment plus the industry’s spending on expenses such as capital goods, electricity, construction, services and supplies generates a total of 1.4 million Texas jobs.
Wages and salaries paid by the Texas oil and natural gas industry also stand out significantly when compared to the rest of the private sector. Texas oil and natural gas employers paid an average of $115,302 per job in 2022. Other private sectors averaged $67,725.
Fueling Public Education
Oil and natural gas royalties to state funds, particularly the Permanent University Fund and Permanent School Fund, widely support Texas public education. In fact, 99% of the state’s oil and natural gas royalties were deposited into these funds with the PUF and PSF each receiving over $2.1 billion in FY 2022.
Texas independent school districts directly received $1.65 billion in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities.
Fueling Communities
In fiscal year 2022, Texas counties received $608.6 million in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities.
Fueling Texas’ Rainy Day Fund
Since the Economic Stabilization (“Rainy Day”) Fund, or ESF, was established in 1987, it has been appropriated 114 times, the first of which was to fund public education. The Texas oil and natural gas industry is the funding source for the ESF and the sum of all ESF appropriations since its inception totals $18.2 billion. Without the direct funding from taxes paid by the Texas oil and natural gas industry, the following priority items would not have received the substantial dollars allocated to meet essential needs.