AUSTIN – Texas Comptroller Glen Hegar’s recently released tax collections data reveals that Texas oil and natural gas producers continue to pay record amounts in production taxes to the State of Texas, reaching new highs in June.
According to the Comptroller’s data, in June, Texas oil producers paid $679 million, the highest monthly collection on record and up 87 percent from June 2021. Natural gas producers also reached a record high in July at $439 million paid, up 176 percent from last June. These monthly amounts are remarkable in that last month’s revenues alone – totaling $1.12 billion – were greater than the average annual revenue from oil and natural gas production taxes at $1.01 billion just a few short decades ago.
“All Texans benefit from a robust oil and natural gas industry that provides hundreds of thousands of good-paying jobs and pays billions towards our state’s economy, essential services and public education whether you live in the oil patch or not,” said Todd Staples, president of the Texas Oil and Gas Association. “These historic job and tax revenue numbers continue to signal the resiliency of our industry which is committed to meeting our energy needs, fortifying our national security, and achieving continued environmental progress.”
Production taxes are only one of the many taxes that the Texas oil and natural gas industry pays. The industry also pays billions in property taxes on all assets from producing minerals properties to pipelines to refineries and gas stations. State and local sales taxes also apply to many purchases made by the industry, raising billions more. There are further taxes, including the state’s franchise tax and gross receipts taxes imposed on natural gas utilities and pipelines, and millions of dollars in fees imposed by state government.
Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.