Texas’ Energy Producers To Provide ‘Stronger Future’ for Lone Star State
2019 was an all-around record-setting year for the Texas oil and natural gas industry, according to the Texas Independent Producers & Royalty Owners Association’s fifth “State of Energy Report.” Thanks to technological innovation, Texas set historical oil and natural gas production records and increased job opportunities in the state by 1.5 percent since 2018 – the largest increase in industry jobs of any state in the county.
Texas Governor Greg Abbott reacted to the report saying:
“The Lone Star State is proud to lead the nation in oil and natural gas production and is setting new records as the industry continues to grow. In addition to employing hundreds of thousands of Texans, the oil and gas sector has played a crucial role in making the United States energy independent. The state of Texas will continue to create an environment that allows independent producers to innovate, thrive and create a stronger future for our great state.”
Setting New Production Records
In 2019, oil production in Texas totaled 1.8 billion barrels, breaking the previous record set in 2018. In fact, the Permian Basin is now the most productive oil field in the world, surpassing Saudi Arabia’s Ghawar oil field.
Not only is Texas’ oil and natural gas industry breaking new oil records, it’s also surpassing natural gas records set nearly 50 years ago! According to the report, natural gas production in Texas hit 10.1 trillion cubic feet (tcf) in 2019. The previous record of 9.6 Tcf was set in 1972.
As the report explains,
“The notable increase in production illustrates the ongoing innovation and operational efficiencies gained within the industry in recent years.”
Providing Abundant High Paying Jobs
Not only is the industry breaking production records, they are also providing hundreds of thousands of high-paying jobs throughout the state. In fact, Texas’ oil and natural gas industry employed 361,271 workers last year, accounting for 40 percent of all oil and gas employment in the nation in 2019. This staggering figure represents a net increase of 5,550 jobs over last year and 65 percent of all new industry jobs provided in the United States in 2019.
Texas also had the highest oil and natural gas payroll in the country in 2019. The industry paid Texans an average annual wage of $132,104, which is 130 percent higher than average private sector wages across the Lone Star State.
Giving Back to the Community
Texas’ thriving energy industry isn’t just benefiting those who work in oil and natural gas. Thanks to increasing production, the oil and natural gas industry contributed a record $16.3 billion in state taxes and royalty payments. Even more impressive, the industry has paid a staggering $116 billion to the state since 2010, helping to fill state coffers and support public education, infrastructure and critical services for Texans.
TXOGA President Todd Staples recently highlighted the impact of oil and natural gas production on Texas communities:
“Oil and natural gas does more than fuel our cars, power our homes and businesses, form the building blocks of our everyday goods and secure our nation. Taxes paid by the oil and natural gas industry support teachers and schools, build roads, boost essential and emergency services, improve healthcare facilities and bolster our state’s infrastructure.”
Highlighting the Importance of Energy Infrastructure
While TIPRO’s report highlights the amazing accomplishments by industry over the past year, it also emphasizes the need for critical infrastructure. “Keep It In the Ground” (KITTG) groups like the Texas Real Estate Advocacy and Defense Coalition (TREAD) are threatening Texas’ economy and global climate progress by attempting to block new pipelines – the safest and most efficient way to transport natural gas and reduce flaring.
As the report explains,
“As production increases in key basins, having adequate pipeline infrastructure to transport oil and gas is essential. To address takeaway capacity constraints in West Texas, pipelines are being expanded, built, planned or proposed. This market challenge illustrates the importance of having sufficient infrastructure in place to support further oil and gas production and its transportation, industry employment, and to sustain an important tax revenue base that supports all aspects of the state economy.”
Despite these challenges, industry professionals remain optimistic about Texas’ flourishing energy industry. TIPRO chairman Eugene Garcia summed up the past year best:
“Despite numerous challenges that faced domestic producers in 2019, the Texas oil and gas industry has remained a cornerstone of the economy providing high-paying career opportunities, as well as significant taxes and royalty payments made to state, local and federal government entities.”