Why the Oil and Gas Industry Is Important in Texas

Texas is one of the largest producers and consumers of oil. Since Texas’s oil supply plays a vital role in the country’s resources, it’s important to understand its history and importance. Keep reading to learn why the oil and gas industry is important in Texas.

Comparing Past and Present Production

When reviewing the history of the oil and gas industry in Texas, early exploration traces back to the late 1800s in Southeast Texas, known as the Big Thicket region. In 1901, the Lucas Gusher at Spindletop (south of Beaumont, Texas) produced an eight-year oil boom in Southeast Texas. Although the initial surge of oil exploration slowed after the oil boom, production increased in the 2000s.

Currently, Texas is a huge contributor to the oil and gas industry. According to the US Energy Information Administration, Texas accounted for 43 percent of the nation’s crude oil production and 25 percent of its marked natural gas production in 2021. Texas has petroleum refineries capable of producing over 4 million barrels of oil every day!

Furthermore, oil production moved from Southeast Texas to the north and east. Today, most Texas oil comes from the Eagle Ford Shale and the Permian Basin.

Natural gas is a byproduct of oil production. The first gas well came to be in 1918, producing an estimated 10 million cubic feet of gas per day. Now, over 1 billion cubic feet of natural gas is produced daily.

How Oil Boosts Texas

Besides producing a lot of oil, Texas consumes a lot. Several areas in the state benefit from the production and consumption of oil and gas. The areas are Houston, Austin, and Midland. The average incomes, property sales, and employment rates grow with production rates. Oil has brought over 300 companies to Texas, with an estimated 150,000 service jobs in Austin.

Economic Benefits of the Industry

The oil and gas industry is important in Texas because of the several economic benefits. According to the Texas Oil and Gas Association, the industry employed 442,966 Texans in 2022. Furthermore, the industry supports public education with a permanent university and school fund. Texas counties also receive millions of dollars in property taxes from oil and gas companies. That said, the industry supports employment, education, and communities!

Industry Influence on the Nation

Texas produces a lot of oil, which provides resources for the entire country. For instance, the transportation industry uses the most oil and gas. Furthermore, industrial, residential, and commercial sectors use oil and gas too. Since there are many ways to use oil, it’s critical to have Texas as a high-producing area.