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New Record: Oil and Gas Industry Paid $15.7 Billion in
Taxes and Royalties, Most in Texas History
Despite prices, oil and gas industry poised to continue tremendous
contribution to Texas economy and state, local tax coffers
AUSTIN – The Texas oil and natural gas industry paid a record $15.7 billion in state and local taxes and royalties
in 2014, the highest such collection from the oil and gas industry in Texas history, according to new economic data
released by the Texas Oil & Gas Association (TXOGA) today. The oil and gas industry supports fully 41 percent
of the Texas economy, up from 33 percent in the previous year.1
“As production in Texas has skyrocketed, local taxes and royalties paid by the Texas oil and natural gas industry
reached a record $15.7 billion in 2014, more than double the total in 2010,” said Todd Staples, president of
TXOGA. “Taxes and royalties paid by the oil and gas industry directly fund our roads, schools, first responders,
essential public services, and more. We are proud to see safe and responsible oil and gas production contributing
so significantly to help the state meet the needs of Texans.”
“Despite decreased oil prices, Texas remains an oil and gas state and the industry is central to our economy. Back
in 2012, when daily oil production was a million barrels a day less than today, the oil and gas industry paid a hefty
$12.1 billion in state and local taxes and royalties,” said Staples. “In 2009, the price of oil was around $60 a barrel
and Texas produced about a third of today’s oil production levels and produced significantly less natural gas. That
year, Texas oil and gas industry paid $8.5 billion in state and local taxes and royalties.”
“Even in years when oil and gas tax revenue doesn’t make history, state and local tax revenue from the oil and gas