In less than a decade, the United States has transitioned from a net importer of natural gas into the world’s leading exporter of this crucial energy resource. Driven by massive production increases in the Permian Basin, Texas has emerged as a hub for a thriving LNG industry, delivering substantial economic, infrastructural and strategic benefits to the state, the U.S. economy and the rest of the world. In Texas coastal counties alone, the direct oil and natural gas industry Gross Regional Product, essentially GDP for a region of study, exceeded $60 billion last year.

Texas has positioned itself as the epicenter of the U.S. LNG export industry becoming a vital engine of economic growth and infrastructural development for the state. Each year, the LNG industry supports thousands of local jobs and contributes billions in state tax revenue. The development of LNG export terminals and pipelines has also spurred widespread infrastructure growth in Texas. The Port of Brownsville and Corpus Christi – regions of the state needing economic revitalization – have seen unprecedented expansion in the last decade. This infrastructure growth creates ripple effects in industries ranging from transportation to engineering and manufacturing, further cementing Texas' position as a leading global energy supplier.

The benefits of Texas natural gas extend beyond economic impact, becoming indispensable in meeting the surging electricity demand during extreme weather events, such as winter storms and record-breaking heatwaves, ensuring a reliable and affordable energy supply for Texans. In addition to keeping the lights on in Texas and the world, natural gas also brings significant environmental benefits. Texas natural gas producers have reached record emissions reductions in the past decade which means that as feedstock for power generation, natural gas offers significantly lower emissions compared to alternatives like coal.

The process of exporting LNG to countries across the globe, and the industry required to do so, has generated substantial economic benefits in the United States – on both a micro and macro scale. According to a recent National Association of Manufacturers (NAM) study based on data from 2023, U.S. LNG exports support 222,450 jobs and pay U.S. workers a combined $23.2 billion in annual income. More broadly, the LNG industry contributes a whopping $43.8 billion toward the U.S. GDP, and generates $11 billion in tax and royalty revenues for local, state, and federal governments. Texas alone accounts for a significant portion of these figures. The report also finds that, under the right circumstances, the number of jobs, annual income, GDP contributions, and tax revenues generated by U.S. LNG exports could quadruple by 2044.

Texas LNG exports have become a critical geopolitical tool for the United States. When Russia invaded Ukraine in February of 2022, countries in Europe were faced with sky-high energy prices and needed to quickly transition away from Russian-supplied LNG. In response, the U.S. ramped up LNG production and export totals to our allies across the Atlantic. In a few short months, between January and April 2022, the U.S. increased our LNG exports by nearly 20 percent, and more than doubled the percentage of LNG exports bound for Europe compared to the year prior. As a result, European imports of Russian natural gas decreased by 40 percent between January and July 2022. Two years later, the European Union is now currently looking to replace its remaining Russian LNG imports with more affordable U.S. gas. In Asia, U.S. LNG is also poised to become critical to meeting the region’s growing energy demand.

When looking more broadly at the Texas oil and natural gas industry, based on our definition and specifically focusing on coastal counties in our state, the positive impact for these communities is enormous. In this region, last year direct oil and natural gas employment exceeded 55,000 with a total diversity index of 50 percent, meaning our industry provides quality employment opportunities across a broad range of demographics. Once direct, indirect, and induced multipliers are incorporated, more than 178,000 jobs were supported by our industry last year in the region.

To further illustrate the reverberating economic impact of our industry, in 2023 nearly $100 billion dollars of U.S. goods and services were purchased by the oil and natural gas sector in Texas coastal counties, 30 percent of which occurred within the region. Out of 926 business sectors in these Texas counties, 880 sold good and services to the local oil and natural gas industry. The industry also supported local businesses and organizations in the communities where it operates including:

• corporate, subsidiary, and regional managing offices ($343,245,558)
• plumbing, heating, and air-conditioning contractors ($133,378,391)
• full-service restaurants ($20,136,027)
• hotels and motels ($11,091,850)
• supermarkets and other grocery stores ($4,254,928)
• clothing and clothing accessories retailers ($2,845,362)
• general medical and surgical hospitals ($1,986,339)
• convenience retailers ($909,520)
• elementary and secondary schools ($474,893)
• and colleges, universities, and professional schools ($365,957)

To see the full list of business sectors in the Texas coastal region that benefit from the local oil and natural gas industry, click here.

“The United States is witnessing the benefits of a strong LNG export industry unfold in real-time,” Ed Longanecker, president of the Texas Independent Producers and Royalty Owners Association. “Texas is at the heart of this burgeoning industry, and will continue to experience tremendous benefits, serving as the bedrock of U.S. economic growth and securing an advantageous position on the global stage for decades to come."