TXOGA reports record revenues for state

Jan. 27—AUSTIN — Texas Oil and Gas Association President Todd Staples said in his annual report that the state's energy industry set an all-time record of $24.7 billion last year in its payment of state and local taxes and state royalties, obliterating the previous record of $16 billion in 2019.

"However, growth is not guaranteed," Staples said. "Policy can promote prosperity or hinder it. Policies and politics in Texas and across our nation will determine if we keep delivering for Texans while meeting our nation's and the world's energy needs."

The former state representative, state senator and state agriculture commissioner from Palestine in East Texas said in a conference call with reporters Monday that energy-related revenues help pay for the operations of Texas' public schools, colleges and universities, roads, healthcare, infrastructure and first responders, among other services.

"The Economic Stabilization Fund, commonly known as the Rainy Day Fund, the Permanent School Fund and the Permanent University Fund are all funded almost exclusively with taxes and state royalties paid by the oil and natural gas industry," Staples said. "In 2022 it employed 443,000 Texans who earned an average of $115,300 each.

"And for every direct job, conservative estimates are that an additional 2.2 indirect jobs are created. In total, 1.4 million Texans' jobs ultimately derive from the state's oil and natural gas industry."

He said oil companies are addressing environmental concerns with the Texas Methane & Flaring Coalition and The Environmental Partnership.

"Texas companies will continue prioritizing collaboration in developing solutions to achieve environmental progress while meeting the energy demands of today and the future," he said.

Texas Railroad Commission Chairman Christi Craddick released a statement saying, "The oil and gas industry is the economic powerhouse of the Texas economy.

"I applaud TXOGA's reporting and I thank the industry for providing jobs, funding schools and roads and producing the raw materials that we depend on every day in this country," said Craddick, a native Midlander.

"After a record-breaking year, Texas continues to lead in energy."

Staples said energy security "is a necessity, not a luxury, as many around the globe are struggling to access reliable, affordable and secure energy.

"Our allies are literally knocking at our door and Texas' oil and natural gas producers, pipelines, refiners and exporters are playing an essential role in delivering energy stability to our trade partners even in times of continued global unrest," he said.

Reviewing TXOGA's priorities in the current 88th Legislature in Austin, Staples said the state "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.

"For example, economic development policy to keep Texas competitive is a must," he said. "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."