The Texas oil and natural gas industry achieved a record-breaking $27.3 billion in state and local taxes and royalties during fiscal year 2024, surpassing the previous year’s record by nearly $1 billion. According to the Texas Oil & Gas Association (TXOGA) report released this month, this unprecedented revenue funds essential services such as education, infrastructure, and public safety. During a media briefing, TXOGA President Todd Staples highlighted the industry’s resilience, noting that despite challenges such as market volatility and federal policy headwinds, Texas remains a global leader in energy production and innovation.
The impact on education was substantial, with nearly $2.92 billion allocated to Texas independent school districts and $1.03 billion to counties through property taxes on oil and natural gas production, pipelines, and utilities. Additionally, 99% of the state’s royalties were directed to the Permanent School Fund and the Permanent University Fund, which grew to $57.3 billion and $31.7 billion, respectively, by the end of the fiscal year. Staples emphasized that these funds, bolstered by industry contributions, provide a critical financial backbone for the state’s public education system.
In 2024, Texas set new records in crude oil and natural gas production. Crude oil production reached as high as 5.86 million barrels per day in October, representing 44% of the nation’s total output. Similarly, natural gas marketed production broke previous records six times throughout the year, accounting for nearly 30% of U.S. production. The Permian Basin, recognized as the world’s most significant oil-producing region, was central to this growth, with innovations boosting efficiency and output.
The industry’s contributions extend beyond direct taxes and royalties. It supports over 492,000 high-paying jobs, with average annual salaries exceeding $128,000, 76% higher than the private sector average in Texas. Including indirect and induced employment, the sector supports nearly 1.4 million jobs statewide. Some analyses suggest the multiplier effect may bring the total to over 2 million jobs.
Infrastructure expansion was also notable, with Texas pipelines extending to 465,025 miles in 2024, up 13,000 miles from the previous year. Staples pointed out that this robust network, along with advanced refining and export facilities, enables Texas to meet growing global energy demands while enhancing energy security at home. The state’s leadership in emissions reductions was also underscored, with methane emissions from the Permian Basin dropping by 26% in 2023.
As the 89th Texas Legislature approaches, Staples urged lawmakers to continue supporting policies that foster growth, innovation, and environmental responsibility within the industry. He emphasized the importance of infrastructure development, water recycling, and electricity grid fortification, stating that the partnership between policymakers and the energy sector is essential for maintaining Texas’ global energy leadership.
Source: Txoga
