January 14, 2020
Texas oil and gas companies paid a record amount into state coffers in 2019 as production continued to break records, according to new figures from the Texas Oil & Gas Association (TXOGA).
The Permian Basin paid in the highest amount of taxes and royalties, with basin school districts receiving about $654 million and counties getting about $209 million.
Top recipient was the Delaware Basin‘s Pecos-Barstow-Toyah ISD with about $109 million from O&G — and Reeves County getting the most in the state at $41 million.
“Despite challenges in the global marketplace, state and local taxes and state royalties paid by the Texas oil and natural gas industry shattered records last year,” TXOGA President Todd Staples said.
“Continuous innovation and policies that encourage safe, responsible energy development are driving our nation, our state and our communities to new heights,” he added.
Mr. Staples detailed how oil and natural gas tax and royalty revenue is used to support education, transportation, healthcare and infrastructure through the State Highway Fund, the Economic Stabilization Fund (commonly known as the Rainy Day Fund), the Permanent School Fund and the Permanent University Fund – all of which are funded with taxes and state royalties paid by the oil and natural gas industry.
A TXOGA press release pointed out that other than interest from the Rainy Day Fund itself, 100% of the money in the Fund comes from taxes paid by oil and natural gas companies.
During the last legislative session, Staples noted that lawmakers appropriated more than $6 billion from the state’s Rainy Day Fund toward many essential programs and initiatives including:
- Over $1.1 billion to the Texas Teacher Retirement System, with half this amount to be invested in the pension fund and the other half financing a “13th check” of up to $2,000 for retired Texas teachers.
- $807 million to the Texas Education Agency to help school districts affected by Hurricane Harvey, including for easing the financial losses to school district property values and for remediating school campuses damaged in the storm.
- $840 million to the Texas Water Development Board to develop and update flood risk maps across Texas and to provide grant funding for flood-related projects.
- $445 million to the Health and Human Services Commission to improve state hospital facilities.
- $125 million for grants to counties to plan, maintain, and reconstruct roads affected by oil and gas development.