The Texas oil and natural gas industry set a record in fiscal 2024 by paying $27. 3 billion in taxes and royalties, which is almost $1 billion more than the previous year. This amount surpasses the total tax revenues of 34 states and supports various public services in Texas, including schools, universities, roads, and emergency services. TXOGA president Todd Staples highlighted that this performance helps push Texas closer to its goal of becoming the 7th largest economy globally.
Staples credited the industry's success to supportive policies from Texas leaders and the industry’s resilience in facing challenges like federal policies, global instability, and market fluctuations. The Texas oil and gas industry also contributes significantly to the Economic Stabilization Fund, the Permanent School Fund, and the Permanent University Fund. Since the creation of the Rainy Day Fund in 1987, over $33. 9 billion has been contributed from oil and gas production taxes.
In 2024, the Permanent School Fund and the Permanent University Fund received 99% of the royalties, totaling $1. 5 billion and $1. 9 billion respectively, which has led to both funds being valued at $57. 3 billion and $31. 7 billion. Staples noted that the Texas Permanent School Fund is the largest education endowment in the nation, larger than Harvard’s endowment, and that the oil and gas industry is the primary contributor to these funds.
Furthermore, Texas school districts received $2. 92 billion from property taxes related to oil and gas, while counties obtained $1. 03 billion. The Permian Basin in West Texas had the highest contributions. Pecos-Barstow-Toyah ISD received the most significant amount of $304. 4 million, which made up 83% of its tax base, while Midland ISD followed with $217. 5 million, accounting for 50. 7% of its tax base.
Top counties for property taxes from the industry include Reeves County, which received $110. 1 million, and Martin County with $54. 9 million, representing 85% and 94. 5% of their respective tax bases. Even in counties where the industry paid less, it still made up a large portion of the tax income.
Since 2007, the Texas oil and natural gas industry has contributed over $257. 6 billion in taxes and royalties while excluding numerous other economic benefits like high-paying jobs and taxes from related sectors. The TXOGA points out that this figure does not account for payroll tax from other jobs that support or are dependent on the industry.
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