Pecos-Barstow-Toyah ISD in West Texas ranked #1 receiving $304.4 million in oil and natural gas property taxes. Reeves County ranked #1 with $110.1 million paid in oil and natural gas property taxes.

Since 2007, when TXOGA first started compiling this data, the Texas oil and natural gas industry has paid more than $257.6 billion in state and local taxes and state royalties, a figure that does not include the hundreds of billions of dollars in payroll for some of the highest paying jobs in the state, taxes paid on office buildings and personal property, and the enormous economic ripple effect that benefits other sectors of the economy.

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. Some economic analyses suggest that when all indirect and induced jobs are considered, the employment multiplier for the oil and natural gas industry could approach three additional jobs per direct job, bringing the total to over 2 million jobs supported by the industry across Texas.

“The Texas oil and natural gas industry’s unmatched, repeat economic performance and its associated impact do not happen by accident,” said Staples. “Non-stop industry innovation, investment and operational efficiencies shattered another string of records in 2024.”

Texas crude oil production set new records in 6 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.

Most of that impressive growth is coming out of the Permian Basin, where innovation and efficiency are driving record production in the most important basin in the world. EIA estimates that new production per rig-month increased by 21% year-over-year as of October 2024.

New record-highs in natural gas marketed production occurred in 6 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 also broke records for in-state crude oil supply, crude oil and condensate exports, and multiple refining outcomes. To transport these record oil and natural gas flows, Texas pipeline infrastructure expanded to 465,025 miles – up 13,000 miles from 2022-2023, according to the Railroad Commission.

“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.”

Staples noted the United States is not only the world’s number one producer of oil and natural gas – with Texas at the front – but 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 EPA. According to a new analysis from S&P Global Commodity Insights, methane emissions from oil and natural gas 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.

In Texas, the flaring rate has dropped by 60% since June 2019 with a flaring rate of less than 0.94% in August, meaning more than 99% of natural gas produced in Texas was being beneficially used. Operators are working to eliminate routine flaring entirely by 2030, with many companies ahead of schedule.

Staples noted that investments in electrification of assets and carbon capture and storage opportunities will further reduce and manage emissions across the Lone Star State.

“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 said. “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.”
With an eye toward the 89th Texas Legislature that convenes on January 14th, Staples outlined the following policy priorities for the session:

Infrastructure: “To maintain our energy leadership in Texas, we need more infrastructure of all kinds – broadband, roads, pipelines, processing plants, LNG facilities, carbon capture and storage facilities – to send a signal that Texas is indeed open for business.”

Water: “We need to build upon the industry’s initiative and innovation in water recycling and reuse, with science-based, consensus-built policies and regulations related to produced water, more testing of technologies’ scalability and more infrastructure to safely move produced water.”

Electricity: “We are eager to see the positive impact of the voter-approved Texas Energy Fund and the Permian Basin Reliability Plan – bold initiatives designed to fortify the electricity grid, encourage investment in new dispatchable generation, and build transmission where Texans need it most.”

Taxes: “Like all Texans, the oil and natural gas industry recognizes the impact of rising property values, and the taxes levied on them, and we support Texas’ lawmakers and state leadership in their efforts to drive down property taxes for everyone. Broad-based relief is the most effective and beneficial to the economy.”

Staples concluded, “We look forward to working with our lawmakers to advance policy that promotes continued prosperity, security and progress for every Texan.”