The Texas Oil and Gas Association (TXOGA) recently released an economic impact report, revealing that the Texas oil and natural gas industry contributed $26.3 billion in state and local taxes and royalties in 2023, setting a new record for the state. The report was announced by Todd Staples, president of TXOGA, and it provided an update on the global leadership of the Texas oil and gas industry, its progress towards environmental goals, as well as TXOGA's policy priorities for the future.
As per the report, the 2023 contribution to local and state taxes surpassed the previous record by over $1.5 billion. This sum included property taxes amounting to $2.81 billion paid to Texas' independent school districts and $885.6 million paid to Texas counties.
In a statement featured in the report, Staples said, "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. 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."
The report also indicated that besides contributions to Texas' counties and independent school districts, billions were contributed by the industry to both the Permanent School Fund and Permanent University Fund with each receiving $1.8 billion. Additionally, both the Economic Stabilization Fund and State Highway Fund received $3.3 billion.
According to TXOGA's report, more than 480,000 Texans are employed by the oil and gas industry with an average salary of $124,000. It is estimated that each of these jobs generates two additional jobs for the Texas economy. In 2023 alone, these workers managed to exceed production records in six months by producing 5.6 million barrels of crude oil per day in the best month, accounting for 42% of the nation's total production.
In his final remarks, Staples acknowledged that Texas' oil and gas production was contributing to global stability. However, he also highlighted several challenges facing the Texas industry moving forward. These include federal policies he believes are designed to hinder industry growth, the need for additional infrastructure in the Permian Basin, more pipelines to transport products, and more cost-effective electrical power.
