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Debate Tip Sheet: Mess With TX Oil & Gas?


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As the 2020 Democratic presidential contenders descend on Houston for tonight’s debate, it’s increasingly important to understand the prominent role of Texas’ natural gas and oil industry to fully appreciate what impacts proposed energy policies may have on the state.

EVEN AMERICA’S ENERGY REVOLUTION IS BIGGER IN TEXAS


The Success Of The Natural Gas And Oil Industry Is Integral To The Strength Of The Texas Economy

  • The natural gas and oil industry supports over 1.9 million jobs in Texas, which amounts to more than 12 percent of the state’s total workforce.
  • Texas natural gas and oil jobs “paid on average 132% more than the average private sector job in the state.”
  • According to the Texas Independent Producers and Royalty Owners Association, “30 percent of all sector jobs in [Texas] were held by Hispanic or Latino workers.”

Texas’ Public Services Receive Tremendous Support From The State’s Natural Gas And Oil Industry

  • According to the Texas Oil & Gas Association:
    • The Texas natural gas and oil industry paid more than $14 billion in state and local taxes and state royalties in FY 2018.
    • That’s the equivalent of $38 million each day that’ directly funds schools, universities, roads and first responders.
    • From 2007 to 2018, the Texas natural gas and oil industries contribution amounted to $133 billion.
  • “[T]he Texas Rainy Day Fund, the nation's largest… is funded almost entirely by the severances tax on oil and natural gas.”

Even As Production Has Surged, CO2 Emissions In Texas Are At Their Lowest Levels In Decades

  • Texas is the leading U.S. producer of both crude oil and natural gas.
    • DOE’s Energy Information Administration (EIA):“In 2017, the state accounted for 37% of the nation's crude oil production and 24% of its marketed natural gas production.”
    • “In 2017, Texas oil production exceeded the state's 1972 peak for the first time when it rose to more than 1.27 billion barrels.”
  • CO2 emissions from Texas’ electric power generation are at their lowest level since the 1990s thanks to increased efficiency and use of natural gas among other reasons.
  • Texas leads the nation in natural gas consumption and over half of Texas’ net electricity generation is derived from natural gas.
  • As of January 2018, Texas’ petroleum refineries accounted for 31% of the nation's capacity.

The Success Of The Natural Gas And Oil Industry Is Integral To The Strength Of The Texas Economy

Heart Energy: “…Texas continues to lead the nation in terms of oil and gas jobs.” “Good news is that progress is being made, and Texas continues to lead the nation in terms of oil and gas jobs.” (Hart Energy, 5/31/18)

The natural gas and oil industry supports over 1.9 million jobs in Texas, which amounts to more than 12 percent of the state’s total workforce, according to a 2017 study by PricewaterhouseCoopers. ” “Good news is that progress is being made, and Texas continues to lead the nation in terms of oil and gas jobs.” (“Impacts of the Natural Gas and Oil Industry on the US Economy in 2015,” PricewaterhouseCoopers, 9/17, p. E-3)


Texas oil and gas impacts


According to the Texas Independent Producers and Royalty Owners Association, “30 percent of all sector jobs in [Texas] were held by Hispanic or Latino workers.” “In the first half of 2019, more than 73,000 women were employed by the Texas oil and gas industry and 30 percent of all sector jobs in the state were held by Hispanic or Latino workers.” (“Midyear Texas Energy Report 2019,” Texas Independent Producers & Royalty Owners Association, 8/29, p.6)

According to the Texas Independent Producers and Royalty Owners Association, Texas natural gas and oil jobs “paid on average 132% more than the average private sector job in the state.” “The Texas Independent Producers and Royalty Owners Association (TIPRO) highlighted progress made it its annual State of Energy report. Among the highlights for 2017: ... Texas oil and jobs paid on average 132% more than the average private sector job in the state—$128,635 vs. $55,380; and About 7.5%, or $41.86 billion, of the Texas total payroll comes from the oil and gas industry.” (Hart Energy, 5/31/18)


Texas’ Public Services Receive Tremendous Support From The State’s Natural Gas And Oil Industry

From 2007 to 2018, the natural gas and oil industry contributed $133 billion in state and local taxes and state royalties, according to the Texas Oil and Gas Association. (Press Release, Texas Oil and Gas Association, 2/13/19)

Chart of total Texas oil and gas royalties

“[T]he Texas Rainy Day Fund, the nation's largest… is funded almost entirely by the severances tax on oil and natural gas.” “This list could go on and on, including the fact that the Texas Rainy Day Fund, the nation's largest with a current balance approaching $12 billion, is funded almost entirely by the severances tax on oil and natural gas.” (Forbes, 2/13/19)

Texas Oil & Gas Association: “In FY 2018, the Texas oil and natural gas industry paid more than $14 billion in state and local taxes and state royalties in fiscal year 2018. This is the equivalent of $38 million each day that directly funds our schools, universities, roads and first responders. The total from 2007 – 2018 is over $133 billion.” (“Benefits of Oil & Natural Gas,” Texas Oil and Gas Association, Accessed 9/11/19)


Natural Gas And Oil Are Paramount To Powering Texas

U.S. Energy Information Administration (EIA): “Texas leads the nation in natural gas consumption, accounting for about one-seventh of the U.S. total.” (“Texas State Energy Profile,” U.S. Energy Information Administration, 2/21/19)

EIA: Over half of Texas’ net electricity generation is derived from natural gas. “Texas produces more electricity than any other state, generating almost twice as much as Florida, the second-highest electricity-producing state. Natural gas-fired power plants supplied almost half of the state's net electricity generation in 2017 and exceeded that share in 2018.” (“Texas State Energy Profile,” U.S. Energy Information Administration, 2/21/19)

EIA: “The amount of natural gas used for electricity generation in Texas is greater than in any other state and accounts for slightly more than one-seventh of the total used by the U.S. electric power sector.” (“Texas State Energy Profile,” U.S. Energy Information Administration, 2/21/19)

“As of January 2018, the 29 petroleum refineries in Texas were able to process more than 5.7 million barrels of crude oil per day and accounted for 31% of the nation's refining capacity.” (“Texas State Energy Profile,” U.S. Energy Information Administration, 2/21/19)

EIA: More than one-third of Texas households rely on natural gas as their primary source of heating fuel. “More than one-third of state households rely on natural gas as their primary heating fuel, but Texas per capita residential natural gas consumption ranks among the lowest one-fifth of states.” (“Texas State Energy Profile,” U.S. Energy Information Administration, 2/21/19)


Even As Production Surges, Emissions In Texas Are At Their Lowest Levels In Decades

EIA: “Texas is the leading U.S. producer of both crude oil and natural gas.” “Texas is the leading U.S. producer of both crude oil and natural gas. In 2017, the state accounted for 37% of the nation's crude oil production and 24% of its marketed natural gas production.” (“Texas State Energy Profile,” U.S. Energy Information Administration, 2/21/19)

“In 2017, Texas oil production exceeded the state's 1972 peak for the first time when it rose to more than 1.27 billion barrels.” (“Texas State Energy Profile,” U.S. Energy Information Administration, 2/21/19)

EIA: CO2 emissions from Texas’ electric power generation are at their lowest level since the 1990s. (“Electric power carbon dioxide emissions, all fuels, Texas,” U.S. Energy Information Administration, Accessed 9/9/19)

Texas electric power sector emissions

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