AUSTIN – State leaders, including Governor Greg Abbott, Lt. Governor Dan Patrick, House Speaker Dade Phelan and Railroad Commission Chair Christi Craddick, today shared their perspective in response to the Texas Oil & Gas Association’s (TXOGA) 2023 Energy & Economic Impact Report, which details the industry’s record-breaking economic impact and its unmatched role as the epicenter of American energy leadership.
In Fiscal Year (FY) 2023, the Texas oil and natural gas industry paid a record-breaking $26.3 billion in state and local taxes and state royalties – the highest total in Texas history – shattering last year’s record by more than $1.5 billion. $26.3 billion in state and local revenue and royalties from oil and natural gas translates to an extraordinary $72 million every day that pays for Texas’ public schools, universities, roads, first responders and other essential services.
“American energy leadership starts in Texas and our nation, our economy and our world are better because of the unparalleled stewardship of Texas oil and natural gas companies,” said TXOGA President Todd Staples. “2023 was such a blockbuster year that the Texas oil and natural gas industry effectively rewrote its record book, clocking unmatched economic and energy achievements across the board.” In addition to taxes paid, the industry broke records in production, crude oil supply, refining, and exporting in 2023.
“Record-breaking performance of the Texas oil and natural gas industry amounts to much more than phenomenal statistical achievements. The natural resources, fuels and essential products produced here cement America’s energy security, fortify Texas’ economic strength and advance global stability at a time when our energy leadership has never been more crucial,” he said.
Following the release of the report, state leaders issued the following statements:
“Ever since Spindletop blew, Texans have been supplying the world with the energy they need to fuel their cars, power their homes, and produce the products we all rely on each and every day. A robust, booming energy industry is a hallmark of the Texas legend. TXOGA’s report is a testament to our state’s unwavering support to expand oil and gas production and protect the hundreds of thousands of hardworking Texans in this critical industry. Texas will always be a pro-energy state.”
– Governor Greg Abbott
“The oil and gas industry is key to Texas’ economic muscle. Texas oil and gas provides affordable and reliable energy for all Americans and is a cornerstone of our national security. It is more important than ever that Texas continues to embrace the oil and gas industry with open arms.”
– Lt. Governor Dan Patrick
“The oil and gas industry is the bedrock of the mighty Texas economy, providing reliable energy, jobs, and economic prosperity for every corner of our state. It is more important than ever that we continue to support this thriving industry with the tools and policies that will allow it to remain the economic engine of Texas.”
– Speaker Dade Phelan
“Texas oil and gas provides power for the world, protects our national security and our allies abroad and ensures Texas remains the economic engine of our nation. As our state continues to grow, the Texas oil and gas industry has grown with it. Innovations and increased efficiency have pushed production to record levels, contributing to state revenues, funding key services like public education and helping make Texas the 8th largest economy in the world.”
– Comptroller Glenn Hegar
“As the steward of 13 million acres of state land abundant in oil and gas leases, the General Land Office is deeply invested in the future of Texas’ oil and gas industry. In fact, our agency provided over $2 billion to public education in Texas last year alone. This record-shattering year for Texas oil and gas reflects our state’s dynamic policies and exceptional management of this vital industry, which supports more than 2.5 million jobs statewide. I will always remain dedicated to strengthening Texas-led energy independence.”
– Land Commissioner Dawn Buckingham
“Yet again, the Texas oil and gas industry has broken records and boosted the state’s economy with taxes, royalties, and quality jobs. Thanks to TXOGA’s reporting, we can see the real-world, positive impact this industry has on our state’s bottom line. Texas is an energy leader because of this industry, and I appreciate the commitment displayed by oil and gas operators to keeping Texas’ economy thriving.”
– Chair Christi Craddick, Railroad Commission of Texas
“Texas oil and gas powers our state and nation, while also providing life-saving reliable energy to the world. Despite the radical movement to end fossil fuels, they are vital to our 21st century life by providing 80% of world energy, helping to make 96% of consumer products, and aiding to feed half the globe. American production is the cleanest in the world, with EPA regulated emissions down 78% over the last 50 years. Stopping U.S. oil and gas production does not eliminate emissions, it simply exports them to dirtier and more hostile producers overseas. Our energy strategy should be to increase production of our domestic fossil fuels and export that reliable energy all over the world.”
– Commissioner Wayne Christian, Railroad Commission of Texas
“As the 2023 Energy and Economic Impact Report shows, the Texas oil and gas industry has, for the second year in a row, set new records for production, exports, and tax revenue to the state. With more than $72 million dollars every day going to fund our schools, roads, and essential services, the impact of the oil and gas industry to the Texas economy and the benefit it provides to the citizens of our state is unmatched.”
– Commissioner Jim Wright, Railroad Commission of Texas
Other findings from the 2023 Energy & Economic Impact Report include:
- In FY 2023, state and local sales taxes paid by the industry rose by $1.6 billion, an indicator of the industry’s ongoing investment in Texas.
- Property taxes paid by the oil and natural gas industry rose another $1.8 billion, as property values of oil and natural gas-bearing mineral properties more than doubled in a single year.
- In 2023, 99 percent of the state’s oil and natural gas royalties were deposited into the Permanent School Fund (PSF) and the Permanent University Fund (PUF), which support Texas public education. Each fund received $1.8 billion. Out of FY 2023’s production taxes paid, the Economic Stabilization (“Rainy Day”) Fund, or ESF, and the State Highway Fund (SHF) each received $3.3 billion.
- Since its inception in 1987, the Rainy Day Fund has received over $31.2 billion from oil and natural gas production taxes. All of these are funded almost exclusively with taxes and state royalties paid by the oil and natural gas industry.
- 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.
- In 2023, the industry employed more than 480,000 Texans who earned an average of $124,000 a year – nearly twice the average paid by the rest of Texas’ private sector. Conservative estimates indicate that each of these jobs generates approximately two more jobs, with more than 1.4 million total jobs supported across the Texas economy. Some economists say this number could be as high as three more jobs supported and total over 2 million jobs in Texas.
- 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 the nation’s production.
- Texas refineries set two new processing records in 2023: Texas refineries processed a record 5.6 million barrels of crude oil per day in July 2023. And as Texas produced and exported record amounts of natural gas liquids (NGLs) in 2023, refineries also utilized record amounts of NGLs.
Read the full report here.
Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.