19 APRIL 2025 WorldWide Drilling Resource® Texas Gas and Oil Industry Makes History ~ Again Adapted from Information by the Texas Oil and Gas Association According to recent data from the Texas Oil & Gas Association (TXOGA), the Texas gas and oil industry paid $27.3 billion in state and local taxes, as well as state royalties, in fiscal year (FY) 2024 - the highest total in Texas history - shattering last year’s record by almost a billion dollars. TXOGA President Todd Staples shared the Association’s annual Energy & Economic Impact Report and provided an update on the industry’s global energy leadership, environmental progress, and its policy priorities for the 89th Texas Legislature. “Remarkably, 2024 was yet another record-breaking year as the Texas oil and natural gas industry does its part to help reach Governor Abbott’s goal for our state’s economy to surpass France as the 7th largest economy in the world,” Staples stated. “From tax revenues and production to pipelines, storage, processing, refining, and exports, Texas’ oil and natural gas industry has achieved record-breaking performance across every sector. Texas leaders embrace policies that recognize oil and natural gas as an asset, not a liability. They view businesses as a partner, not an adversary. For its part, the industry has persevered through hostile federal policies of the outgoing Administration, global unrest, and market volatility - including negative prices for natural gas - to shatter its own records, all while protecting and improving the environment.” According to Staples, $27.3 billion in tax revenue and state royalties from the Texas gas and oil industry (more than 34 states’ entire tax revenues) translates to a remarkable $74.8 million per day for Texas’ public schools, universities, roads, first responders, and other essential services. Public education received a major infusion of funds from gas and oil royalties in FY 2024, with 99% deposited into the Permanent School Fund and the Permanent University Fund. The Texas Permanent School Fund is larger than Harvard’s endowment and is largest education endowment in the nation. In fact, the gas and oil industry is the only significant contributor of fresh investment capital to these critical Texas education funds. Since 2007, when TXOGA first started compiling this data, the Texas gas and oil industry has paid more than $257.6 billion in state and local taxes and state royalties, a figure which does not include the hundreds of billions of dollars in payroll for some of the highest paying jobs in the state. In 2024, the industry employed more than 492,000 Texans who earned an average of $128,255 a year - 76% more than the average paid by the rest of Texas’ private sector. Conservatively, these jobs generate approximately two more jobs, with nearly 1.4 million total jobs supported across the Texas economy. New record-highs in natural gas marketed production occurred in six of the past 12 months, accounting for nearly 30% of U.S. production. Production exceeded last year’s record-breaking single-month high of 1.0 trillion cubic feet six times in 2024. Texas crude oil production also set new records in six of the past 12 months, producing as much as 5.86 million barrels per day of crude oil in October 2024 - the highest total ever - and 44% of the nation’s total. The most impressive growth came from the Permian Basin, where innovation and efficiency are driving record production. “Texas-produced oil and natural gas, robust pipeline networks, export infrastructure, and world-class refining reduce our dependence on other nations and help to keep prices down and our supply stable at home,” said Staples. “Abroad, our energy leadership is answering the call from the growing global economy, where oil and natural gas demand could reach consecutive record highs in 2025 and 2026. Clearly, the world needs more, not less, of reliable, responsibly produced oil and natural gas, and Texas is leading the way.” The United States is not only the world’s number one producer of gas and oil - with Texas at the front - the nation also leads the world in emissions reductions. “No one produces, transports, and refines oil and natural gas with the same commitment to safety and protecting the environment as American operators,” he said. “Industry-led initiatives like the Texas Methane & Flaring Coalition and The Environmental Partnership are dramatically reducing flaring and emissions and achieving environmental gains unseen anywhere else in the world.” Between 2015 and 2022, methane emissions have dropped 42% in key production regions across the U.S., according to the Environmental Protection Agency. According to a new analysis from S&P Global Commodity Insights, methane emissions from gas and oil production operations in the Permian Basin in 2023 decreased 26% from the previous year, equal to the total amount of carbon emissions avoided by every electric vehicle on the road in the United States that year. “Thanks to abundant natural resources, generational know-how, and bold leadership, the Texas oil and natural gas industry plays a pivotal role in providing economic and energy security for our nation and stability for our allies around the globe,” he concluded. “We can never take that for granted. Policy, crafted in partnership with our state’s leaders, is key to continued success in Texas because we know policy can promote prosperity or hinder it.” G&O
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