The Texas oil and gas industry paid $15.8 billion in state and local taxes and state royalties in fiscal year 2021, according to recently released data from the Texas Oil & Gas Association (TXOGA). , which were sent to Rigzone.
That figure translates to well over $43 million a day, TXOGA pointed out, adding that state royalties and production taxes increased more than 20% in fiscal year 2021 and production topped $5 billion for only the third time in history.
The funds directly supported Texas schools, teachers, roads, infrastructure and essential services, TXOGA noted. In 2021, 98% of the state’s oil and gas royalties were deposited into the Permanent School Fund and the Permanent University Fund, which support public education in Texas, TXOGA revealed. The PUF received $979 million and the PSF received $1.099 billion. The Rainy Day Fund reportedly received $1.134 billion in taxes on oil and natural gas production.
Texas school districts received $1.84 billion in property taxes on oil and natural gas-producing mining properties, pipelines, and gas utilities, and counties received $640 million in property taxes, pointed out TXOGA.
“As our country continues to rebound from the lingering impact of the pandemic, this data confirms that the reliable and affordable energy, fuels and products produced by the oil and natural gas industry are critical to continued economic and environmental progress,” said TXOGA President Todd Staples. an organizational statement.
Since 2007, when TXOGA began compiling this data, the Texas oil and natural gas industry has paid more than $178.7 billion in state and local taxes and state royalties, according to TXOGA. The organization pointed out that this figure does not include the hundreds of billions of dollars in payroll for some of the highest-paying jobs in the state, taxes paid on office buildings and personal property, and the effect “huge” economic stimulus that benefits other sectors. economy.
In 2021, the industry reportedly employed 422,122 Texans who earned an average of $109,000 each. For every direct job in the industry, conservative estimates indicate that an additional 2.2 indirect jobs are created, according to TXOGA.
Last month, TXOGA noted that new data from the Texas Workforce Commission showed another month of job growth for oil and gas sector employment in Texas, with 2,400 jobs in the sector in upstream added in November. For the past six consecutive months, job gains have exceeded 2,000 jobs each month, with the average monthly gain being 2,633, TXOGA pointed out in a statement from the organization at the time.
TXOGA is a statewide trade association representing all facets of the Texas oil and gas industry, including small independents and large producers, its website notes. Collectively, TXOGA members produce more than 80% of Texas crude oil and natural gas, operate more than 80% of the state’s refining capacity, and are responsible for the vast majority of the state’s pipelines, points out TXOGA.
The organization was founded in 1919 and is said to be the oldest and largest petroleum and natural gas trade association in Texas.
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