Texas continues to benefit from a robust oil and gas industry, providing affordable energy and fuel to its residents, according to recent statements and industry reports. The economic impact of this sector extends far beyond the gas pump, funding critical state and local services.
Governor Greg Abbott highlighted the importance of oil and gas in a post on X, formerly known as Twitter, stating that thanks to the industry, Texas has access to affordable energy and fuel. This sentiment was echoed in a Facebook post from the Governor’s office, emphasizing that the industry “keeps opportunity within reach.” , both posts circulated widely, underscoring the political significance of the energy sector in the state.
The Texas Oil & Gas Association (TXOGA) further details the financial contributions of the industry, noting that oil and natural gas companies contribute billions of dollars annually in state and local taxes. These funds are then allocated to essential public services, including road and highway infrastructure development, public education, emergency response systems, and healthcare facilities.
TXOGA recently released its 2025 Energy & Economic Impact Report, the findings of which were discussed in a recent podcast episode, “TXOGA Talks.” The report provides a detailed breakdown of the industry’s economic footprint within the state.
Looking ahead, the future of Texas energy is a complex issue being examined by organizations like Texas 2036. Their newly launched Future of Texas Energy dashboard offers a data-driven analysis of potential outcomes based on various energy policy options. The dashboard explores four key scenarios: Status Quo, Advanced Fossil, Energy Transition, and Energy Expansion.
The “Advanced Fossil” scenario focuses on continued fossil fuel production coupled with carbon capture, utilization, and underground storage technologies. The “Energy Transition” scenario prioritizes renewable energy sources, decarbonization, and electrification. The “Energy Expansion” scenario represents an “all-of-the-above” approach, anticipating improvements in both fossil fuel and renewable technologies. The “Status Quo” scenario represents a continuation of current trends without significant technological advancements.
According to Texas 2036’s analysis, the Texas economy is projected to perform well through 2050 under all four scenarios. The models suggest that fostering market opportunities for a diverse range of energy technologies will positively impact the state’s economic growth. Specifically, under scenarios involving greater adoption of new energy technologies, economic growth is projected to outpace the “Status Quo” scenario.
The Texas 2036 dashboard examines economic output (GDP plus intermediate inputs) by region and scenario, projecting data from to . The organization emphasizes that Texas is well-positioned to maintain its leadership in energy production, contributing to the continued expansion of the state’s economy.
While the long-term implications of energy policy are still being debated, the current reality is that the oil and gas industry remains a vital component of the Texas economy, providing not only energy resources but also substantial financial support for public services and economic opportunity.
