According to data from the Texas Oil & Gas Association (TXOGA), the Texas oil and natural gas industry paid $15.8 billion in state and local taxes and state royalties in fiscal year (FY) 2021, funds that directly support Texas schools, teachers, roads, infrastructure and essential services.
"As our nation continues its rebound from the lingering impact of the pandemic, this data confirms reliable and affordable energy, fuels and products made by the oil and natural gas industry are central to continued economic and environmental progress," said TXOGA President Todd Staples.
$15.8 billion translates to well over $43 million every day. Both state royalties and production taxes increased by more than 20 percent in FY 2021, and production taxes exceeded $5 billion for only the third time in history.
Staples detailed how oil and natural gas tax and royalty revenue is used to support education, transportation, health care and infrastructure, both locally in communities across Texas and through royalty and tax revenue that's paid into the Economic Stabilization Fund (commonly known as the "Rainy Day Fund"), the Permanent School Fund (PSF) and the Permanent University Fund (PUF) -- all of which are funded almost exclusively with taxes and state royalties paid by the oil and natural gas industry.
In 2021, 98 percent of the state's oil and natural gas royalties were deposited into the PSF and the PUF, which support Texas public education. The PUF received $979 million, and the PSF received $1.099 billion. The Rainy Day Fund received $1.134 billion from oil and natural gas production taxes.
In FY 2021, Texas school districts received $1.84 billion in property taxes from mineral properties producing oil and natural gas, pipelines and gas utilities. Counties received $640 million from these property taxes.
Midland Independent School District in West Texas ranked No. 1, receiving $134.9 million from mineral properties producing oil and natural gas, pipelines and gas utilities. Reeves County ranked first with $47.4 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 $178.7 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 2021, the industry employed 422,122 Texans, who earned an average of $109,000 each, almost double the average pay compared to other private sectors. For every direct job in the industry, conservative estimates indicate that an additional 2.2 indirect jobs are created. In total, 1.37 million Texans' jobs ultimately derive from the Texas oil and natural gas industry.
For more information, visit www.txoga.org/2021eeir or call (512) 478-6631.
