Texas made record-breaking $26.3B in off oil and gas tax revenue last year

Another good year for Texas oil companies boosted state coffers in 2023, the oil and gas tax revenue yielding a record $26.3 billion in taxes and state royalties that fueled the state’s schools and county governments, according to figures released Tuesday by the Texas Oil and Gas Association.

The industry trade group said state revenues from oil and gas activities increased 6% in 2023 compared with the previous $24.7 billion record set in 2022, when oil prices soared after the start of the Ukraine war.

Russia’s invasion of Ukraine sparked energy shortages that drove up prices and prompted oil and gas companies in Texas to increase production, helping to deliver a second consecutive record-breaking year for state revenues tied to the industry.

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Monthly production totals in 2023 set records, TXOGA President Todd Staples said Tuesday during a news conference. The Texas industry produced 5.6 million barrels per day of crude oil in October, the state’s highest-ever monthly oil production.

“American energy leadership starts in Texas,” he said during the conference call. “Our nation, economy and our world are better because of the tremendous gains happening in Texas oil and natural gas.”