February 26, 2018
Texas Oil and Natural Gas Industry Paid More than $11 Billion in Taxes and Royalties in 2017, Up from 2016 Staples: ‘Production, pipelines, refining and policy
key to Texas energy future.’
AUSTIN – According to just-released data from the Texas Oil & Gas Association (TXOGA), the Texas oil and natural gas industry paid just over $11 billion in state and local taxes and state royalties in fiscal year 2017, a solid increase from the $9.4 billion paid in fiscal year 2016.
“The remarkable and sustained recovery of the Texas oil and natural gas industry is benefitting our state and local economies, providing the equivalent of $30 million a day for our schools, universities, roads and first responders,” said Todd Staples, president of TXOGA. “What’s happening in Texas is the primary reason that our nation is a global power broker.”
In fiscal year 2017, Texas school districts received $1.1 billion in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities. Counties received $336 million in oil and natural gas mineral property taxes. Property tax totals for each county and ISD is available here:
In addition to discussing state and local tax revenue, Staples detailed energy-related milestones occurring nationwide, many of which can be attributed to record production, expanding pipeline infrastructure, and increased export and refining capabilities in Texas.
“Recently-released data shows that Texas produced nearly 40% of the nation’s crude oil when the United States crossed the 10 million-barrel per day threshold. Our crude oil imports are down 20% from 2006 and last month, our crude oil exports were more than double the average in January 2017,” he said. “The U.S. became a net exporter of natural gas in 2017 and those exports are expected to increase more than 10-fold in 2019 – thanks in part to the seven LNG facilities planned or under construction in Texas.”
“These energy outcomes were unthinkable a decade ago and they are a direct result of Texans’ dedication to innovation and consistent regulations and policies,” he said. “While our ability to produce unprecedented amounts of oil and natural gas is a major contributor to our global leverage, production is only part of the story. Policy that encourages growth in the entire oil and natural gas sector is key to the Texas success story and is the foundation of our energy future.”
Staples described TXOGA’s priorities related to pipelines, port expansion, refining, and the North American Free Trade Agreement (NAFTA).
“Smart policy will keep Texas on top,” he said. “Maintaining state policies that allow us to expand our energy infrastructure – including pipelines, tanks, terminals, and refining capacity – is the best way to increase energy reliability and security and to protect our fuel supply in the event of a natural disaster.”
Staples was pleased to see that President Trump included $13 million for the Corpus Christi Ship Channel Expansion project in his recently-released budget. And as NAFTA negotiations resumed yesterday in Mexico City, Staples described the importance of the trade agreement to Texas.
“NAFTA has served as the essential framework that has allowed the oil and natural gas industry to see the growth and prosperity it has today – resulting in hundreds of thousands of jobs for Texans,” he said.
“We have a lot at stake as NAFTA negotiations continue because Texas is home not only to the oil and natural gas and the pipelines that transport it to Mexico, but also the refineries and petrochemical plants that make the products we export to our neighbors,” he said. “It is imperative to maintain the NAFTA provisions that enforce fair trade practices and allow our industry to remain competitive, grow jobs and invest with certainty.”
“Sound, science-based policy at the state and federal levels will allow the Texas oil and natural gas industry to continue to secure our economy, our environment and our future,” he said.