Report: Texas Oil and Gas Industry Generates $26 Million Per Day in State and Local Revenue
Tuesday, February 21, 2017
New data from the Texas Oil & Gas Association (TXOGA) shows that oil and natural gas development in Texas generated an astounding $9.4 billion in taxes and state royalties in 2016. That comes out to $26 million per day in state and local revenue, even as the industry suffered from a down market.
The substantial benefits of oil and natural gas development in Texas are well known. Whether it’s providing billions of dollars to the state’s education system, boosting local economies and property values, or improving American energy security, oil and natural gas production is a critical part of the economy in the Lone Star State.
According to Todd Staples, TXOGA president:
“Even in a down market during fiscal year 2016, the Texas oil and natural gas industry contributed an average of $26 million a day to state and local revenue. The oil and natural gas industry has paid $108 billion in state and local property taxes and state royalties since 2007 – a figure that would finance the current annual state budgets for the University of Texas-Austin and Texas A&M University, combined, for well over 100 years.”
But it’s not just the tax revenue and royalties paid out by oil and natural gas producers that have Texans celebrating. According the TXOGA, the oil and gas industry in Texas added jobs every month between September and December 2016, creating a total of 4,700 new jobs. Additionally, Texas school districts received $1.7 billion in property taxes from oil and natural gas production, pipelines, and natural gas utilities. Texas counties also received almost $530 million in oil and natural gas property revenue, helping to support infrastructure projects and vital services such as police and fire departments.
Staples added that Texas oil and natural gas production is helping save American families money – an average of $1,300 per family in 2015:
“Tax revenue from the Texas oil and natural gas industry directly funds our schools, universities, roads and first responders every year. Not just during record-breaking years…Beyond dollars and cents for the State, Texas oil and natural gas is keeping energy local and electricity affordable for Texas families.”
You can learn more about TXOGA’s new data by clicking here.