The Texas Independent Producers & Royalty Owners Association’s (TIPRO) fourth edition of its “State of Energy Report,” released earlier this month, contained many astounding findings, most of which touted Texas as an oil and natural gas producing powerhouse as well as a top oil and gas industry employer.
Every year TIPRO’s report offers a detailed analysis of national and state trends in oil and gas employment, wages, and other key economic factors for 2018. Some of its key national findings included:
• The US oil and gas industry employed 880,681 professionals in 2018, an increase of 45,354 jobs vs. 2017.
• The industry paid a national wage averaging $112,712/year last year—more than double average private-sector wages.
• Payroll in the US oil and gas industry totaled $99 billion in 2018—an increase of 6% from the previous year.
• The oil and gas industry’s purchase of US goods and services in 2018 exceeded $530 billion.
Texas on top
Texas far and away led the US in 2018 in oil and gas industry employment, TIPRO reported, with a total of 352,371 jobs—an increase of 26,706 jobs vs. 2017. Texas, in fact, had the largest increase in industry jobs in 2018 and represented 40% of all oil and gas jobs nationwide last year.
TIPRO said, “The rollback of unnecessary and overly burdensome regulations at the federal level and the pro-business environment in Texas directly contributed to a surge in oil and gas production and energy jobs.”
Rounding out the top five states for employment growth were Oklahoma, 5,266; New Mexico, 3,626; North Dakota, 2,808; and Colorado, 2,282.
Texas’ oil production reached a record total of 1.54 billion bbl in 2018, surpassing a previous record of 1.28 billion bbl set in 1973, TIPRO said. The second-largest producer of oil in 2018 was North Dakota with 443 million bbl. This was followed by New Mexico, 226 million bbl; Oklahoma, 187 million bbl; and Alaska, 175 million bbl.
Total gas production in Texas reached 8.8 tcf in 2018 compared with 8 tcf produced in 2017. Rounding out the list of top gas producers were Pennsylvania, 6.1 tcf; Alaska, 3.2 tcf; Louisiana, 2.7 tcf; and Oklahoma, 2.3 tcf.
In 2018, the US became the largest global crude oil producer, officially surpassing Russia and Saudi Arabia, according to the US Energy Information Administration. This production growth was led y independent producers, who collectively drill about 95% of the oil and gas wells in the US, TIPRO said.
Independents driving independence
“As the national leader in oil and natural gas production, Texas is paving the way for America’s energy independence,” said Texas Gov. Greg Abbott. “From technological advancements resulting in increased oil and natural gas output to our LNG export facilities, the Lone Star State’s energy economy is firing on all cylinders.”
TIPRO noted that oil and gas independent producers are driving the energy economy, which is directly benefiting Texas. During 2010-18, total state taxes and state royalty payments paid by the oil and gas industry in Texas exceeded $100 billion, the report said. Also, Texas is home to 2.5 million mineral owners, of the 12.5 million mineral owners in the US.
“Texas’ independent oil and gas producers are essential to our state and nation,” said Railroad Commission Chairman Christi Craddick.
“The Texas oil and gas industry has remained a cornerstone of the economy providing high-paying career opportunities, as well as significant taxes and royalty payments made to state, local, and federal government entities,” said Eugene Garcia, president of Hurd Enterprises and TIPRO chairman. “The favorable business environment, environmental stewardship, and science-based approach to regulatory oversight in Texas is a model for all oil and gas producing states.”
Ed Longanecker, TIPRO president, added, “Key priorities for TIPRO at the state level during the 86th Texas Legislative session include increased funding for transportation investment in energy producing areas, workforce development, property tax reform, and a balanced approach to critical infrastructure needs that recognizes the dominance of the mineral estate, existing laws and regulations, and private property rights.”
