The record $26.3 billion that the Texas energy industry paid last year in state and local taxes and state royalties gave crucial support to public schools, universities, roads and other services.
That’s according to State Rep. Brooks Landgraf and the Texas Oil & Gas Association, who say the industry is providing more benefits than ever.
“For decades Texas oil and gas have fueled our industries, powered our homes and driven our nation’s economy forward,” said Landgraf, R-Odessa, who chairs the Texas House Committee on Environmental Regulation in Austin. “And the massive tax revenue generated by energy production in our region funds critical infrastructure projects, bolsters our education system and supports essential public services across our state.
“If the Permian Basin and other oil-producing regions are allowed to thrive, America’s energy independence can finally be secured, ensuring the prosperity, security and power of our nation. It simply cannot be overstated: Texas oil and gas play a pivotal role in sustaining our way of life and protecting our constitutional freedoms.”
Landgraf said his Texas STRONG bill, which passed the House by 144-1 in 2023, would ensure that the state invested in the Permian Basin and other high energy-producing regions to ensure their continued growth and productivity.
“The STRONG Fund created by this legislation would receive a portion of severance tax revenue for the purpose of supporting transportation infrastructure, workforce and economic development, public education, healthcare and public safety needs in regions of the state with the highest oil and gas production,” Landgraf said. “In the next legislative session I intend to continue building on the progress we’ve made and rally support for Texas STRONG.
“With this vital support the Permian Basin and all the other oil and gas-producing regions of our state can fulfill the promise of economic growth, prosperity and American energy independence for generations to come.”
TXOGA President Todd Staples said from Austin that American energy leadership starts in Texas.
“Our nation, our economy and our world are better because of the unparalleled stewardship and innovation of Texas oil and natural gas companies,” Staples said. “Year after year every Texan benefits from state and local tax revenue generated by the Texas oil and natural gas industry whether they live near the oil patch or not.”
In Fiscal Year 2023, he said, the industry paid $26.3 billion in state and local taxes and state royalties, which send $72 million per day for Texas’ public schools, universities, roads, first responders and other essential services.
“Texas school districts received $2.81 billion in property taxes from mineral properties producing oil and natural gas, pipelines and gas utilities,” Staples said. “Counties received an additional $885.6 million in these property taxes.
“The Permanent School Fund and the Permanent University Fund, which support Texas public education, each received $1.8 billion in oil and natural gas royalties and the Economic Stabilization or ‘Rainy Day’ Fund and the State Highway Fund each received $3.3 billion from oil and natural gas production taxes.”
Staples said all of those funds are fueled almost exclusively with taxes and state royalties paid by the Texas oil and natural gas industry.
