TIPRO Releases Annual “State of Energy Report”

Austin, Texas – The Texas Independent Producers & Royalty Owners Association (TIPRO) today released the ninth edition of its “State of Energy Report,” offering a detailed analysis of national and state trends in oil and natural gas employment, wages and other key economic factors for ​the energy industry in 2023. TIPRO’s “State of Energy Report” series was developed to quantify and track the economic impact of the domestic oil and natural gas sector with an emphasis on the state of Texas.

“Despite facing a number of unique challenges, including geopolitical conflicts and an adversarial federal policy environment, the U.S. oil and gas industry continued to offer significant economic support in 2023, while providing reliable and affordable energy to meet growing domestic and global demand,” said Jud Walker, chairman of TIPRO and president and CEO of EnerVest, Ltd. “TIPRO’s comprehensive annual analysis illustrates the immense contributions provided by the Texas oil and natural gas industry from an economic and national security perspective,” added Walker.

According to TIPRO, the industry supported a total of 2 million direct jobs in the U.S. last year, with total direct and indirect jobs tied to the industry exceeding 24 million. The U.S. oil and natural gas sector paid a national annual wage averaging $79,417 and had a combined payroll of $162 billion. Direct Gross Regional Product (GRP) also surpassed $1 trillion in 2023. Additionally, total U.S. goods and services purchased in 2023 by the oil and natural gas industry exceeded $882 billion from over 900 business sectors, notes TIPRO.

In Texas, the oil and gas industry once again led the nation in industry employment last year, accounting for 23 percent of all oil and gas jobs in the nation, as outlined in the association’s new report. The industry supported a total of 471,631 direct jobs in Texas in 2023, with total direct and indirect employment of 2.9 million. Direct GRP for Texas oil and gas equaled an estimated $364 billion in 2023. Total U.S. goods and services purchased by the Texas oil and natural gas industry reached $288 billion last year, 83 percent of which came from Texas businesses, benefiting virtually every business sector in the state.

The Lone Star State again was the nation’s top oil producer, supplying a record 1.99 billion barrels of oil to energy markets in 2023. TIPRO reports that Texas also broke a new record in natural gas output with over 12.2 trillion cubic feet (Tcf) of gas produced. Texas production is helping to change the world by providing access to this foundational, low-carbon fuel source. Last year saw a record-breaking number of exports, with large volumes expected to continue as additional terminals come online and demand for the fuel remains high amid geopolitical tensions.

U.S. crude production, including condensate, averaged 12.9 million barrels per day (b/d), breaking the previous U.S. and global production record of 12.2 million (b/d). Monthly production established a new record, hitting an all-time high in December with more than 13.3 million b/d. U.S. natural gas production averaged a record 104 billion cubic feet per day (Bcf/d) last year, a 4% increase from the 2022 annual average.

“The Texas oil and natural gas industry remains a cornerstone of the Texas and U.S. economy, and a critical source of energy security for our country and allies abroad,” said Ed Longanecker, president of TIPRO. “We applaud the immense contributions provided by the Texas oil and natural gas industry and the policymakers that understand its importance,” added Longanecker.

What does Oil & Gas mean for Texas?

• Texas led the nation in oil and gas jobs with 471,631 people employed in this industry. 23 percent of all oil and gas jobs nationwide were located in Texas last year.
• When incorporating direct, indirect, and induced multipliers for oil and gas employment, the industry supported a total of 2.9 million jobs in Texas last year.
• Four percent of the Texas workforce were between the ages of 22-24 years old, 21 percent were 25-34, 27 percent were 35-44, 22 percent were 45-54, 16 percent were 55-64 and 5 percent were 65 or older.
• Texas was the leading state by employment in 15 out of the 19 sectors used to define the oil and natural gas industry in 2023.
• Oil and gas jobs in Texas paid an annual average wage of $124,453, 74 percent more than all average private sector jobs in the state. The highest average industry wages were in Alaska last year ($143,421). Iowa had the lowest average oil and gas wages in the country ($33,292).
• Texas had the highest oil and gas payroll in the country in 2023 ($59 billion), with California coming in at a distant second ($14 billion), followed by Louisiana ($9 billion).
• Texas had the largest number of oil and gas businesses in the nation last year with 23,315, followed by California (9,328), Florida (7,634), Georgia (6,310) and New York (5,801).
• Oil production in Texas was 1.99 billion barrels in 2023, a new record. New Mexico had the second highest oil production with 662 million barrels, followed by North Dakota with 433 million barrels produced. Permian operators were largely responsible for these numbers, producing a record 6.1 million b/d by the end of 2023.
• Texas led the country in natural gas production with a record 12.2 Tcf produced in 2023, followed by Pennsylvania with 7.6 Tcf.
• Texas had the highest rig count in the country in 2023 with an average of 356 active rigs. The number of rigs in Texas decreased from a high of 428 in January to 314 in December. New Mexico had the second highest rig count in the country and experienced a drop of seven rigs in the same timeframe.
• In 2023, total direct GRP for the Texas oil and natural gas industry was an estimated $364 billion. Once you incorporate the typical multiplier for GRP, the Texas oil and natural gas industry supported approximately 35 percent of the Texas economy.
• The Texas oil and natural gas industry purchased U.S. goods and services in the amount of $288 billion, 83 percent of which came from Texas businesses.
• The Texas oil and natural gas industry paid a record $26.3 billion in state and local taxes and state royalties in Fiscal Year 2023.

The “State of Energy Report” series is published exclusively by TIPRO. A full list of the data sources used to develop this analysis can be viewed in the methodology section of the report.

Visit https://tipro.org/tipro-energy-report-2024/ to view TIPRO’s new “State of Energy Report.”

About TIPRO

The Texas Independent Producers & Royalty Owners Association (TIPRO) is a trade association representing the interests of nearly 3,000 independent oil and natural gas producers and royalty owners throughout Texas. As one of the nation’s largest statewide associations representing both independent producers and royalty owners, members include small businesses, the largest, publicly-traded independent producers, and mineral owners, estates, and trusts.