Texas Oil and Gas Contributed $30 Million Per Day in Taxes and Royalties in 2017
Tuesday, February 27, 2018
A new report from the Texas Oil & Gas Association (TXOGA) finds that oil and natural gas operators in Texas paid roughly $30 million per day in state and local taxes and royalties during the 2017 fiscal year. All told, oil and gas contributed $11 billion in revenue to the state and local governments – an increase of 17 percent from 2016 – thanks to record oil and gas production.
TXOGA president Todd Staples highlighted the substantial benefit this tax and royalty revenue provides to the state and local communities stating:
“The remarkable and sustained recovery of the Texas oil and natural gas industry is benefitting our state and local economies, providing the equivalent of $30 million a day for our schools, universities, roads, and first responders,”
This revenue is vital for the state education system, as the TXOGA report finds that Texas school districts received $1.1 billion in property tax revenue. In fact, oil and gas revenue accounts for the lion’s share of many Texas independent school districts’ (ISD) tax base. For example, Karnes County ISD, located in the middle of the Eagle Ford Shale, received about $30.2 million in revenue from oil and gas in 2017, while the Permian Basin’s Midland ISD received $32.5 million in oil and gas tax and royalty revenue.
In addition to analyzing oil and gas revenue by school funding, the report also shows revenue by county. Used to maintain roads, build infrastructure and fund emergency services, the report finds that $336 million oil and natural gas mineral property taxes went to Texas counties in 2017.
Such massive amounts of revenue for Texas communities and schools is made possible by advances in development, such as hydraulic fracturing and horizontal drilling, which has allowed Texas and U.S. production to reach record levels. As Staples mentions in the press release:
“These energy outcomes were unthinkable a decade ago and they are a direct result of Texans’ dedication to innovation and consistent regulations and policies.”