In a new record for the Lone Star State, Texas produced 11.2 trillion cubic feet of natural gas in 2022, with growth expected to trend even higher going forward, according to the latest report from the Texas Independent Producers and Royalty Owners Association (TIPRO).
TIPRO also noted that Texas supplied the country with 1.83 billion barrels of oil last year.
In its State of Energy Report, TIPRO chairman Jud Walker noted that "Despite facing a number of unique challenges, including supply chain bottlenecks, inflationary pressures, workforce shortages and an adversarial federal policy environment, the U.S. oil and gas industry continued to offer significant economic support in 2022."
"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," Walker added.
According to the report, the Texas oil and gas industry led the nation in industry employment in 2022, accounting for 37% of nationwide oil and gas jobs and indirectly employing 2.6 million people.
Texas' direct oil and gas payroll hit $48 billion in 2022, compared to $11 billion for California and $7.6 billion for Louisiana, the second and third biggest payroll contributors.
In terms of oil production, Texas' 1.83 billion barrels in 2022 compared to New Mexico, with the second highest at 534 million barrels, and North Dakota, with 393 million barrels.
In the field of natural gas, where Texas broke a new record, the second biggest producer for 2022 was Pennsylvania, which produced 7.6 Tcf.
The Lone Star State also boasted the highest rig count in the U.S. last year, with an average of 380 active rigs. From January 2022 to December 2022, Texas saw active rigs increase from 332 to 410.
Gross Regional Product (GRP) for the Texas oil and gas industry came in at $322 billion for 2022, a figure that represents 16% of the state's economy. TIPRO, however, notes that the actual contribution to the state's economy is much higher, stating, "Once the typical multiplier for Gross Regional Product is incorporated, the Texas oil and natural gas industry supported 40% of the Texas economy."
That all earned the state of Texas $24.7 billion in taxes and royalty payments from the oil and gas industry last year.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com More