Texas sets record tax collections from oil and gas production

Fuel Fix:

The oil and gas industry broke state tax records in 2019 while grappling with ways to control emissions that are believed to be responsible for climate change.

In a report issued on Tuesday morning, the Texas Oil & Gas Association reported that the industry paid $16.3 billion in taxes and royalties to the State of Texas, county governments and school districts — breaking previous records amid record production of crude oil and natural gas.

Record production and tax revenues come at a time of increased scrutiny and pressure to curb an industry practice known as flaring where producers burn off excess natural gas at oil wells.

"We believe that all emissions contribute to climate change and we believe that our industry is committed to doing our part to make improvements," TXOGA President Todd Staples said during a Tuesday morning conference call with reporters.

As much as 752 million cubic feet of natural gas is being burned off per day rather than being moved to market where it can be sold and generate revenues for companies as well as taxes revenue for the state, counties and school districts, an analysis from the Norwegian research firm Rystad Energy shows.

Methane, the primary component of natural gas, is a potent greenhouse gas that is being blamed for climate change. During the call, Staples said the industry is tackling emissions through technologies such as carbon capture, carbon sequestration, leak detection and improving formulas for fuels.

"I think Texas oil and natural gas companies are committed to making climate progress," Staples said. "They're committed to a lower emissions future."

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Looking at the tax revenue figures, the Permian Basin of West Texas led the state in taxes and royalties received from the oil and natural gas industry. school districts there received $653.7 million while the region's counties received $208.9 million.

The Pecos-Barstow-Toyah ISD in the Delaware Basin region of the Permian was the top recipient with $109.2 million received from the industry while Reeves County was the top county in the state with $41.6 million.
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The flaring issue should be substantially reduced as more infrastructure such as pipelines are finished and the natural gas can be moved to the market.  The real threat to the Texas economy comes from Democrat candidates for President who have promised to stop fracking and destroy the oil and gas business.

Not only would that damage jobs in the industry, but it would also threaten Texas schools and state government road funds.

Such a move by the Democrats would lead to a recession that would threaten the entire state economy and housing market.  If Texas supports any of these Democrat candidates they are working against their own interests and their neighbors.

BTW, Bernie Sanders said he would avoid trade deals because of his hostility to fossil fuels.