As America’s top oil and natural gas producer, Texas relies on energy development to drive its economy, fund education and conservation, and support a range of industries from exports to the service sector.
In fiscal year 2020, the Texas oil and natural gas industry paid $13.9 billion in state and local tax revenue and royalties. This included more than $2 billion for Texas school districts; $1.65 billion for education, healthcare, transportation, and infrastructure projects; and $771 million for Texas universities. Revenue from offshore federal energy development has contributed $610 million to fund Texas conservation efforts, state parks, and wildlife habitats since 1965.
Federal energy development plays a vital role in supporting Texas’s economic growth and employment, with a ban on federal leasing putting these benefits at risk. In 2025, Texas would lose $1.44 billion in GDP and nearly 14,700 jobs. In 2030, Texas would lose $5.72 billion in GDP and nearly 60,000 jobs. In 2040, Texas would lose $6.5 billion in GDP and nearly 83,200 jobs.