The Texas Independent Producers & Royalty Owners Association (TIPRO) released the eighth edition of its “State of Energy Report,” offering a detailed analysis of national and state trends in oil and natural gas employment, wages and other key economic factors for the energy industry in 2022.
TIPRO’s “State of Energy Report” series was developed to quantify and track the economic impact of domestic oil and natural gas production with an emphasis on the state of Texas.
“Despite facing a number of unique challenges, including supply chain bottlenecks, inflationary pressures, workforce shortages and an adversarial federal policy environment, the U.S. oil and gas industry continued to offer significant economic support in 2022,” said Jud Walker, chairman of TIPRO and president and CEO of EnerVest, Ltd. “Oil and natural gas development, led by Texas operators, will play an important role in meeting growing global energy demand for decades to come under any realistic scenario,” added Walker.
According to TIPRO, the industry supported a total of 948,943 direct jobs in the U.S. last year, with total direct and indirect jobs tied to the industry exceeding 19 million. The U.S. oil and natural gas sector paid a national annual wage averaging $120,665 during 2022, 74 percent higher than average private sector wages. Payroll in the U.S. oil and gas industry meanwhile totaled $114 billion and direct Gross Regional Product (GRP) was $854 billion in 2022, or approximately 3 percent of the U.S. economy. Additionally, total U.S. goods and services purchased in 2022 by the oil and natural gas industry exceeded $744 billion from over 900 business sectors, notes TIPRO.
In Texas, the oil and gas industry once again led the nation in industry employment last year, accounting for 37 percent of all oil and gas employment in the nation, as outlined in the association’s new report. The industry supported a total of 347,828 direct jobs in Texas in 2022, with total direct and indirect employment of 2.6 million. Direct GRP for Texas oil and gas equaled $322 billion in 2022, or 16 percent of the state economy. Total U.S. goods and services purchased by the Texas oil and natural gas industry surpassed $264 billion last year, 82 percent of which came from Texas businesses.
TIPRO reports that Texas also broke a new record in natural gas output last year with over 11.2 trillion cubic feet (Tcf) of gas produced. Production in the Lone Star State is helping to change the world by providing access to this foundational, low-carbon fuel source. Last year, the U.S. also drastically increased its liquified natural gas (LNG) exports to Europe as the continent's energy crisis intensified. In fact, 74 percent of all U.S. exports went to Europe in the first of half of 2022. In that same period in 2021, exports to Europe only represented 34 percent of U.S. LNG exports.
In addition, during 2022, the Lone Star State again was the nation's top oil producer, supplying 1.83 billion barrels of oil to energy markets last year, according to TIPRO.
“The Texas oil and natural gas industry remains a cornerstone of our state economy, and a critical source of energy security for our country and allies abroad,” said Ed Longanecker, president of TIPRO. “TIPRO will continue to work with our members and policy leaders to maintain a business and regulatory environment that supports the responsible development of oil and natural gas for the benefit of Texans, the United States and our allies abroad,” added Longanecker.
