The Texas Independent Producers & Royalty Owners (TIPRO) Association’s eighth edition of its State of Energy Report found Texas in the driver’s seat. This is when it comes to oil and gas production and oil industry-related jobs for 2022. Oil production in Texas was 1.83 billion bbl in 2022.
New Mexico with 534 million bbl was a distant second, followed by North Dakota with 393 million bbl. Texas also led the country in natural gas production with a record 11.2 Tcf produced in 2022. This is followed by Pennsylvania with 7.6 Tcf. The Lone Star state had the highest rig count in the country in 2022. It has an average of 380 active rigs. The number of rigs in Texas increased from 332 in January 2022 to 410 in December 2022.
The Texas Oil and Natural Gas Industry
The Texas oil and natural gas industry paid a record $24.7 billion in state taxes. This includes state royalty payments in 2022. Royalty funds support all aspects of the state economy. This includes schools and education, first responders, and transportation infrastructure investment.
“Despite facing a number of unique challenges, including supply chain bottlenecks, inflationary pressures, workforce shortages, and an adversarial federal policy environment, the US oil and gas industry continued to offer significant economic support in 2022,” said Jud Walker, chairman of TIPRO and president and CEO of EnerVest Ltd. “Oil and natural gas development, led by Texas operators, will play an important role in meeting growing global energy demand for decades to come under any realistic scenario.”
The report found the state’s oil and gas industry supported a total of 948,943 direct jobs in the US last year, with total direct and indirect jobs tied to the industry exceeding 19 million. The US oil and natural gas sector paid a national annual wage averaging $120,665 during 2022, 74% higher than average private sector wages. Payroll in the US oil and gas industry meanwhile totaled $114 billion and direct Gross Regional Product (GRP) was $854 billion in 2022 or around 3% of the nation’s economy.
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Source: JPT
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