New Report Finds Natural Gas Saved Texans $60 Billion
Tue, October 16, 2018
Natural gas has been vital in helping keep energy costs low. In fact, the report finds that residential consumers alone saw $7.2 billion in savings from 2006 to 2016, thanks to cheap, abundant natural gas. This is particularly notable considering that almost four million Texans – or approximately 15 percent – live in poverty, and low-income households spend roughly one-third of their incomes on energy. The cost savings from natural gas means these families don’t have to make as many tough budget decisions – including whether to pay bills or buy groceries.
But affordable energy is not the only way increased energy development is helping Texas residents. The report notes that during fiscal year 2017, oil production contributed over $2 billion to the state budget, with natural gas production contributing nearly $1 billion. Oil and gas production has also been a boon for jobs: as of June 2018, direct upstream oil and gas jobs in Texas reached almost 229,000.
This uptick in employment and production activity is expected to continue benefiting Texans by contributing massively to state and local coffers. For the 2018-2019 biennium, the state will bring in an estimated $4.9 billion in oil tax revenue and $1.8 billion in natural gas tax revenue. The revenue generated from oil and gas activities funds Texas public schools, along with emergency services and vital infrastructure such as roads.
It’s the state’s continued support of oil and gas development, coupled with its vast resources, that has allowed the sector to thrive in the Lone Star State, CEA President David Holt stated in the press release:
“It’s no secret Texas is a national and global leader in energy production. But what remained under the radar was how this sustained leadership, paired with the ability to move resources through pipeline infrastructure, greatly benefited Texas families and businesses and helped fund critical municipal services including schools, hospitals, and roads.”
The report observes that these benefits could be threatened by out-of-state activist groups working to hinder or stop operations. There’s certainly no shortage of activist groups working to shut down oil and gas development, in Texas and elsewhere. Thankfully, as this report demonstrates, they’ve largely been unsuccessful in the Lone Star State, as production continues to increase – delivering tens of billions of dollars in benefits to hardworking Texas families.