Staples: Texas Oil and Natural Gas: A Lone Star Treasure and a National Asset

The 89^th Texas Legislature is kicking into high gear as our elected officials have 140 days to consider thousands of bills and set the state’s budget for the next two years.

Thanks in part to history-making performance and record-breaking tax revenue from the Texas oil and natural gas industry, Texas has a $20 billion surplus and is on very sound financial footing as lawmakers get to work for the people of the Lone Star State.

That’s good news that hundreds of oil and natural gas workers were proud to share recently at Texas Energy Day at the Capitol in Austin. 

Engaging with lawmakers is a right and privilege that every Texan should embrace. As a former elected official myself, I know how important it is for lawmakers to hear from Texans about their lives, their work and the impact of decisions made under the pink dome in Austin. These are critical conversations because public policy can promote prosperity or hinder it.

For their part, the almost 500,000 men and women of the Texas oil and natural gas industry have a great story to tell about their contributions to our state, the nation and the world. Consider this: Texas is far and away the largest oil and natural gas state and has propelled the United States to become the world’s #1 producer of oil and natural gas, the world’s top exporter of liquified natural gas (LNG) and a net exporter of energy – feats that were unthinkable just 20 years ago. These achievements coincide with operators’ unmatched success in environmental protection and innovation. 

Todd Staples

In 2024, U.S. crude oil production reached new highs, setting a production record above 13.6 million barrels per day in December. Texas alone accounted for more than 42% of the year-over-year increase in production. In all, Texas contributes 43.1% of total U.S. oil production, 29.2% of U.S. marketed natural gas production and 34.3% of refining capacity in the nation. Texas also has the largest pipeline network and more LNG export facilities than any other state.

Our energy dominance directly strengthens the Texas economy. In fiscal year 2024, the Texas oil and natural gas industry supported $718.6 billion in Gross Domestic Product (GDP), nearly 1.4 million jobs, and paid more than $27 billion in state and local taxes and state royalties, money that funds our schools, colleges, roads, first responders and other essential services. For context, the $27 billion in taxes and royalties paid by the Texas oil and natural gas industry alone is more than the entire tax revenue of 34 states. 

Beyond our borders and our budget, what’s happening in Texas has been truly transformative for the nation. Less than 20 years ago, the United States imported 12.4 million barrels per day of petroleum, relying on foreign sources for nearly 60% of our domestic petroleum needs. This dependence cost $273.3 billion (2.0% of GDP) annually and accounted for more than a third of the U.S. trade deficit. Today, thanks to the U.S. energy revolution – driven by Texas’ dramatic growth in crude oil and natural gas production – the U.S. is now a net exporter of petroleum, with a surplus of 2.2 million barrels a day through the first three quarters of 2024, contributing to a $45.2 billion petroleum trade surplus.

These achievements are the result of abundant natural resources, generational know-how and bold leadership that have elevated Texas oil and natural gas beyond a single state’s treasure to become a national asset that powers American progress and global stability. That’s a story we should all be proud to tell. 

Editor’s Note: The above guest column was penned by Todd Staples, president of the Texas Oil & Gas Association and former Texas Agriculture Commissioner. The column appears in the Rio Grande Guardian International News Service with the permission of the author. Staples can be reached by email via: schang@txoga.org

The post Staples: Texas Oil and Natural Gas: A Lone Star Treasure and a National Asset appeared first on Rio Grande Guardian.