New TIPRO Report Hails Massive Benefits of Texas Oil and Gas
Mon, February 03, 2020
Texas set historic oil and natural gas production records and increased jobs in the industry by nearly two percent in 2019, according to a recent Texas Independent Producers and Royalty Owners Association (TIPRO) report.
The report, titled “The State of Energy”, found that Texas oil production totaled 1.8 billion barrels, breaking the previous record set just last year. In fact, the Permian Basin is now the most productive oil field in the world, surpassing Saudi Arabia’s Ghawar oil field.
Similarly, Texas’ natural gas production continued its record-breaking streak, surpassing 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.
TIPRO’s comprehensive report contains a range of data showing how vital oil and natural gas development is to the Texas economy. The state continues to lead U.S. oil and natural gas employment, accounting for about 40 percent of direct oil and gas jobs nationally. In fact, direct oil and gas employment alone accounts for 2.8 percent of all private sector employment in Texas, with 361,271 workers last year. Texas’ oil and gas workers were paid an annual average wage of $132,104 – 130 percent more than the average private sector job in the state. The state also had the highest oil and gas payroll in the country in 2019 ($48 billion), with California coming in at a distant second ($9.2 billion).
And it’s not just workers that have benefitted. Texas’ prolific oil and natural gas development benefits the entire state. Record-breaking production oil and gas production resulted in a record $16.3 billion in state taxes and royalty payments. The oil and gas industry has paid over $116 billion to the state since 2010, helping to fill state coffers and support public education, infrastructure and critical services for
The report also highlights a key challenge for oil and natural gas production: the ongoing and pressing need for energy infrastructure. As TIPRO contends, the lack of takeaway capacity for oil and natural gas “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.” In order to keep the benefits of oil and gas flowing, we need infrastructure investments in everything from pipelines to ports.
TIPRO’s report is clear: oil and natural gas development continues to be both an economic and societal cornerstone for the state. The future for oil and natural gas development looks bright, and it will continue providing Texans with high paying jobs and a better ability to invest in our cities and schools.