(The Center Square) – The Texas oil and natural gas industry broke multiple records in 2024, from production, to job creation, to taxes and royalties it paid, according to a new report published by the Texas Independent Producers & Royalty Owners Association (TIPRO).
In Texas, the industry led the U.S. in nearly every category, including having the most people employed in the industry.
Texas accounts for 23% of all oil and natural gas jobs in the U.S., supporting 480,460 directly last year, with direct and indirect jobs totaling nearly 2.8 million, according to the analysis.
Nationwide, the industry supported more than 2 million direct jobs last year, with total direct and indirect jobs reaching nearly 23 million.
Texas also led all other states in industry employment in 16 out of 19 sectors used to define the oil and natural gas industry in 2024.
When it comes to wages, oil and natural gas jobs in Texas paid the most, with an annual average wage of $128,876 – 74% more than all average private sector jobs in the state.
Nationwide, Texas reported the largest oil and gas payroll in 2024 of $62 billion, followed by California’s $15 billion and Louisiana’s $10 billion.
Nationally, the oil and gas sector paid an annual wage averaging $81,808, with a combined payroll of $168 billion.
When it comes to total goods purchased impacting the economy, Texas also led last year.
Total U.S. goods and services purchased by the Texas oil and natural gas industry reached $307 billion, 81% of which came from Texas businesses and benefitted nearly all business sectors statewide.
Direct Gross Regional Product also equated to $366 billion last year, supporting 15% of the state economy, according to the analysis. When incorporating a “typical multiplier of 2.5x, the Texas oil and natural gas industry supported 38% of the Texas economy,” TIPRO said.
The Texas oil and natural gas industry also paid a record $27.3 billion in state and local taxes and state royalties in fiscal 2024, The Center Square reported.
Nationwide, total U.S. goods and services purchased by the industry exceeded $865 billion from over 900 business sectors; Direct Gross Regional Product surpassed $1 trillion.
In the Texas coastal region alone, the Texas Liquified Natural Gas industry contributed $60 billion in GDP in 16 counties last year, The Center Square reported.
When it comes to production, Texas also led, remaining the top oil producer in the country. Last year, Texas producers were responsible for distributing a record 2 billion barrels of oil to energy markets in 2024.
New Mexico, where the bulk of production occurs in the Permian Basin, reported the second greatest volume of 737 million b/d, followed by North Dakota’s 436 million b/d, according to the analysis.
As Texas continued to break production records, it also set emissions reduction records, led in the Permian, The Center Square reported.
Texas also broke a new record in natural gas output last year with over 12.7 trillion cubic feet (Tcf) of gas produced; Pennsylvania produced 7.3 Tcf, according to the analysis.
Nationwide, crude oil production averaged a record 13.2 million barrels per day (b/d) last year, according to the U.S. Energy Information Agency. U.S. natural gas production averaged a record 113 billion cubic feet per day last year, the EIA reported.
Texas also had the greatest number of oil and gas businesses in the country last year of 23,549, followed by California’s 9,486, Florida’s 7,695, Georgia’s 6,453 and New York’s 5,768.
When it comes to rig count, Texas also reported the greatest number in the country, with an average of 290 active rigs, followed by New Mexico’s 97.
This article was originally published at www.thecentersquare.com
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