Texas oil and gas producers saw a record year in 2022 amid high oil and natural gas prices, which led to some considerable tax money being funneled into the state treasury and local counties and schools, according to the Midland Reporter-Telegram.
“I continue to be awestruck by the extraordinary role oil and natural gas play in our state and national economy,” said Texas Oil and Gas Association President Todd Staples, speaking about the association’s Annual Energy & Economic Impact Report.
The oil and natural gas industry in Texas contributed $24.7 billion in state and local taxes and state royalties in 2022. The previous record was $16 billion in 2019, according to the report.
“The taxes paid is a really good thing for Texas. [It means] more money for infrastructure, and more money for the education system in Texas,” Richard Welch, a 20-year oil and gas industry veteran who ran for Texas 38th Congressional District in 2022, told The Dallas Express.
“[The money] should be used for helping Texans with the outrageous property taxes that we pay here,” Welch argued. “It was a record production year where the Permian basin was number one in oil production in the US. We are glad that Texas could step up to the plate and meet the demand of the United States and the world.”
Since 2007, the Texas oil and natural gas industry has paid $203.4 billion in state and local taxes and state royalties, the report said.
Staples said that Texas’ oil and gas industry’s bright future is not assured and stressed that legislators now meeting in Austin at the 88th Texas legislative session should consider several points.
“A bright future is Texas’ to lose. We can continue to outpace other states and even countries with economic opportunity, job growth and capital investment or we can forfeit the game by sitting some of our best players on the sidelines,” said Staples.
“For example, economic development policy to keep Texas competitive is a must.
“We also need a policy framework that allows Texas to lead in carbon capture and sequestration, electricity market redesign policy that keeps the grid reliable and rates affordable, policies to fund our key regulatory agencies, and protection against policy that would adversely impact this industry’s contributions to a cleaner, strong, better future.”
“We look forward to working with our lawmakers as they embrace opportunities to advance our state’s energy leadership, strengthen communities and grow local economies.”
“We need bold energy policy leadership, not political obstructionism,” Staples added.
He raised concerns about potential headwinds coming from Washington D.C. in the form of permitting delays, canceled pipelines, and proposed regulations, according to the Midland Reporter-Telegram.
“While this report details the enormous economic impact of the oil and gas industry on all Texans, we also recognize that many parts of the world are struggling for reliable, affordable and secure energy. At this moment, the world understands energy security is a necessity, not a luxury and our allies are literally knocking at our door in energy need.”
The oil and gas industry remains well-paid, accounting for 443,000 jobs with an average salary of $115,300. Every direct oil and gas job also corresponds to about 2.2 indirect jobs created, meaning 1.4 million Texans’ jobs were in the state’s oil and gas industry, according to the report.
