AboutTXOGA
Founded in 1919, the Texas Oil & Gas Association (TXOGA) is a statewide trade association representing every facet of the Texas oil and natural gas industry.
The mission of TXOGA is to promote a robust oil and natural gas industry and advocate for sound, sciencebased policies and free-market principles.
Published January 2025
AMessagefromOurPresident
On behalf of the members of the Texas Oil & Gas Association, we are pleased to release our annual Energy & Economic Impact Report, which affirms the oil and natural gas industry’s outsized and unmatched contribution to the financial might of our state – and the energy leadership of our nation.
During my first race for Texas Agriculture Commissioner, I pledged to visit all 254 Texas counties – a challenging, but accomplished, mission. I can personally attest that at the heart of every Texas community is a call for jobs, economic security and a quality of life. For 10 years now as president of TXOGA, I have witnessed how the Texas oil and natural gas industry is literally answering that call and improving the life of every Texan
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 the Texas economy to surpass France as the 7th largest economy in the world.
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.
On the economic front, the Texas oil and natural gas industry paid a record $27.3 billion in state and local taxes and state royalties – the highest total in history – shattering last year’s record by almost a billion dollars This translates to an astonishing $74 8 million a day that directly fund our public schools, universities, roads, first responders and other essential services for every Texan. $27.3 billion is greater than 34 states’ entire tax revenues.
Theindustry’ssuccessindeliveringfortheLoneStar State–asuccesssharedbyeveryTexan–isthedirect resultofPolicy,PartnershipsandPerseverance.
Texas leaders embrace science-based 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, in 2024, the industry persevered through hostile federal policies, global unrest and market volatility – including negative prices for natural gas – to shatter its own records, while protecting and improving the environment.
Together, policy, partnerships and perseverance benefited every Texan again this year, whether they live near the oil patch or not Texas-produced oil and natural gas, robust pipeline and export infrastructure and world-class refining reduce our dependence on other nations and help to keep prices down and our supply stable at home. Abroad, we are increasingly answering the energy call for an ever-growing global economy thanks in large part to our ever-expanding LNG facilities.
At every level, we need policies that bolster our energy leadership so that Texas can continue to ronger, better future for America and our allies around the world.
ToddStaples President Texas Oil & Gas Association
Since2007,whenTXOGAfirststartedcompilingthisdata, ourindustryhaspaidmorethanaquarterofatrilliondollars ($257.6billion)instateandlocaltaxesandstateroyalties.
Texasaccounted forasmuchas44 percentofallU.S. oilproduction ThePermianBasin drovevastmajority ofU.S.naturalgas productiongrowth
ThePermianBasin rosetonewlevelsof recordproduction
FUELINGTHEWORKFORCE
Texasoilandnaturalgasindustryjobs continuetobegoodforTexasaswellasforthe familiesandcommunitiesthesejobssupport.
Directoilandnaturalgasemploymentplusthe industry'sspendingonexpensessuchas capitalgoods,electricity,construction, servicesandsuppliesgeneratenearly 1.4millionjobs.
1.4milliontotaljobssupportedacrosstheTexaseconomy.
$128,255 Texasoilandnaturalgasemployees
$72,915 OtherTexasprivatesectoremployees Texasoilandnaturalgasemployerspaidanaverageof $128,255perjobin2024—76%morethantheaverage paidbytherestofTexas’privatesector.
On a per-employee basis, the Texas oil and natural gas industry paid $55,000 in state and local taxes and state royalties in 2024.
This is almost 9timeshigher than the other private sectors, which paid an average of just over $6,200 on a peremployee basis.
Per-job contributions matter because most state and local spending needs are driven by the size of the population.
In a system that relies so heavily on business to pay the cost of government, it is clear that the oil and natural gas industry more than pays its share in Texas.
FUELINGPUBLICEDUCATION
TheTexasoilandnaturalgasindustryplaysa significantroleinfundingpubliceducationinthe state.Throughavarietyoftaxesandroyalties,the industryhelpstoprovidemuch-neededfunding forschools,teachers,andstudents.
Thissupportservesasanimportantexampleof industry'scontributionstothenextgenerationof Texasleaders.
PubliceducationreceivedamajorinfusionoffundsinFY 2024,as99percentofthestate’soilandnaturalgas royaltiesweredepositedintothePermanentSchoolFund andthePermanentUniversityFund.Thosefundsreceived
$1.5 & $1.9 billion
$2.9 billion respectively.Additionally,independentschooldistrictsin Texasreceivedoilandnaturalgaspropertytaxestotaling
Top10ISDsforoilandnaturalgaspropertytaxes*
Pecos-Barstow-Toyah
Midland
Wink-Loving
Rankin
United
Reagan County
Carrizo Springs
Grady
Culberson County-Allamore
Andrews
$304.4 million 83.0% of tax base
$217.5 million 50.7% of tax base
$184.0 million 92.4% of tax base
$130.0 million 92.4% of tax base
$74.6 million 36.5% of tax base
$70.2 million 88.7% of tax base
$69.1 million 87.8% of tax base
$66.8 million 96.2% of tax base
$63.8 million 82.2% of tax base
$62.1 million 74.5% of tax base
FUELINGCOMMUNITIES
CountiesacrosstheLoneStarStatereceive millionsofdollarsinpropertytaxespaidbythe Texasoilandnaturalgasindustry.
Thisfundingsupportslocalcommunitiesand empowersthemtoaddresslocalneedsand issues.
InFY2024, Texascountiesreceivedoilandnaturalgas propertytaxestotalingover
*Note: "Oil and
FUELINGSAVINGS&HIGHWAYS
Texansknowthattheoilandnaturalgasindustry anchorsoureconomyanddirectlyfundsour roads,schools,emergencyservicesandour RainyDayFund.
Thissupportiscriticalforourstate,andensures fundingforourstateandlocalgovernments.
sincetheFund’sinceptionin1987.Thisamountsto84 percentoftheRainyDayFundrevenueovertime.Outof FY2024’sproductiontaxespaid,theRainyDayFundand theStateHighwayFundeachreceived
$3.1 billion
LegislatorshaveappropriatedfundsfromtheRainyDay Fund115times,thefirstofwhichwastofundpublic educationinTexas.Thesumofallappropriationstotals TheTexasoilandnaturalgasindustryistheprimary fundingsourcefortheEconomicStabilization(“Rainy Day”)Fund,contributingmorethan $33.9 billion
$18.4 billion WithoutthedirectfundingfromtaxespaidbytheTexasoil andnaturalgasindustry,supportforretiredteachers, disasterrecovery,healthcareservices,andnumerous otherpriorityitemswouldnothavereceivedthe substantialdollarsallocatedtomeetessentialneeds.
Texasoilandnaturalgasfuelmodernlifeasweknowit.
Nearly all of the products we use every day like pharmaceuticals, electronics, cosmetics and clothing are all made from oil and natural gas.
Beyondthehundredsofthousandsofjobstheindustry createsandbillionsintaxesitpays,oilandnaturalgas improvetheeconomicandsocialprogressof communitieshereandaroundtheworld. g products,fuels,andelectricitythatpowermodernlife.
THEBIGPICTURE
Thankstoabundantnaturalresources,generationalknowhowandboldleadership,theTexasoilandnaturalgas industryplaysapivotalroleinprovidingeconomicand energysecurityforournationandstabilityforourallies aroundtheglobe.
Wecannevertakethatforgranted.Policy,craftedin partnershipwithourstate’sleaders,iskeytocontinued successinTexasbecauseweknowpolicycanpromote prosperityorhinderit.
TomaintainourenergyleadershipinTexas,weneedmore infrastructureofallkinds–broadband,roads,pipelines, processingplants,LNGfacilities,carboncaptureandstorage facilities–tosendasignalthatTexasisindeedopenfor business.
Onelectricity,weareeagertoseethepositiveimpactofthe voter-approvedTexasEnergyFundandthePermianBasin ReliabilityPlan–boldinitiativesdesignedtofortifythe electricitygrid,encourageinvestmentinnewdispatchable generation,andbuildtransmissionwhereTexansneedit most.
Weneedtobuildupontheindustry’sinitiativeandinnovation inwaterrecyclingandreuse,withmoreinfrastructureto moveproducedwater,andscience-based,consensus-built policiesandregulationsrelatedtoproducedwater.
TXOGAmembersareactiveparticipantsintheTexas Seismicity&WaterPartnershipandtheTexasProduced WaterConsortiumandareindiscussionswiththeRailroad Commissionabouttheirpilotprogramsforbeneficialusesof producedwater.
Finally,likeallTexans,theoilandnaturalgasindustry recognizestheimpactofrisingpropertyvalues,andthe taxesleviedonthem,andwesupportTexaslawmakersand stateleadershipintheireffortstodrivedownpropertytaxes foreveryone.
Welookforwardtoworkingwithourlawmakerstoadvance policythatpromotesprosperity,securityandprogressfor everyTexan.