North America's natural gas industry is thriving, and Texas is leading the charge with its impressive production numbers. According to the latest report from the Texas Independent Producers and Royalty Owners Association (TIPRO), Texas produced 11.2 trillion cubic feet of natural gas in 2022, setting a new record for the state and indicating that growth is expected to continue in the coming years. In addition, Texas supplied the country with 1.83 billion barrels of oil in 2022.
The oil and gas industry in North America has faced numerous challenges in recent years, including supply chain bottlenecks, inflationary pressures, workforce shortages, and a challenging federal policy environment. Despite these obstacles, TIPRO's State of Energy Report found that the industry still provided significant economic support in 2022. TIPRO chairman Jud Walker noted that,
"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."
Stats at a Glance:
- In terms of employment, the Texas oil and gas industry was the leading sector in the nation, accounting for 37% of all oil and gas jobs nationwide and indirectly employing 2.6 million people.
- Texas' direct oil and gas payroll hit a staggering $48 billion in 2022, far outpacing the $11 billion from California and the $7.6 billion from Louisiana.
- The Lone Star State also boasted the highest rig count in the country last year, with an average of 380 active rigs and an increase from 332 to 410 active rigs from January to December 2022. This resulted in a Gross Regional Product (GRP) for the Texas oil and gas industry of $322 billion, which represents 16% of the state's economy.
- TIPRO notes that the actual contribution to the state's economy is much higher, with the Texas oil and natural gas industry supporting 40% of the Texas economy once the typical multiplier for GRP is incorporated.
This impressive performance by the Texas oil and gas industry resulted in $24.7 billion in taxes and royalty payments to the state of Texas in 2022.
With its continued growth and success, the natural gas industry in North America, and particularly in Texas, will continue to play a vital role in meeting global energy demands and driving economic growth in the coming years.