How Much Did Texas Oil Pay in Taxes in 2021?
The Texas oil and natural gas industry paid $15.8 billion in state and local taxes and state royalties in fiscal year 2021, according to just released data from the Texas Oil & Gas Association (TXOGA), which was sent to Rigzone.
This figure translates to well over $43 million every day, TXOGA highlighted, adding that both state royalties and production taxes increased by more than 20 percent in fiscal year 2021 and that production taxes exceeded $5 billion for only the third time in history.
The funds directly supported Texas schools, teachers, roads, infrastructure and essential services, TXOGA outlined. In 2021, 98 percent of the state’s oil and natural gas royalties were deposited into the Permanent School Fund and the Permanent University Fund, which support Texas public education, TXOGA revealed. The PUF received $979 million and the PSF received $1.099 billion. The Rainy Day Fund was said to have received $1.134 billion from oil and natural gas production taxes.
Texas school districts received $1.84 billion in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities, and counties received $640 million in these property taxes, TXOGA highlighted.
“As our nation continues its rebound from the lingering impact of the pandemic, this data confirms reliable, affordable energy, fuels and products made by the oil and natural gas industry are central to continued economic and environmental progress,” TXOGA President Todd Staples said in an organization statement.
Since 2007, when TXOGA first started 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 “enormous” economic ripple effect that benefits other sectors of the economy.
In 2021, the industry was said to have employed 422,122 Texans who on average earned $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 Texas Workforce Commission data showed another month of job growth for Texas oil and natural gas employment, with 2,400 upstream sector jobs added in November. For the past six months in a row, employment gains exceeded 2,000 jobs every month with the average monthly gain being 2,633, TXOGA outlined in an organization statement at the time.
TXOGA is a statewide trade association representing every facet of the Texas oil and gas industry including small independents and major producers, its website notes. Collectively, the membership of TXOGA produces in excess of 80 percent of Texas’ crude oil and natural gas, operates over 80 percent of the state’s refining capacity, and is responsible for the vast majority of the state’s pipelines, TXOGA highlights.
The organization was founded in 1919 and is said to be the oldest and largest oil and natural gas trade association in Texas.
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