WHY OIL AND NATURAL GAS?
Energy is fundamental to the lives we live – free, safe and healthy, with broad opportunity – and the Texas oil and natural gas industry reliably provides the energy we need each day to heat our homes, fuel our cars, bring food and goods to market, and cook our meals. Because of today’s oil and natural gas industry, delivering the energy that powers modern living means doing so with lower environmental impact and improved products and operations. In all of these, industry is leading the way.
SAFE, CLEAN AND SECURE ENERGY.
The best way to advance climate progress is through investments in innovation and technology.
The oil and natural gas industry is producing energy in cleaner and more efficient ways than 10-15 years ago all while producing more affordable and reliable energy to power our daily lives. Texas is a leader in resource development because the industry focuses on innovation which advances economic growth while taking every step to protect the environment. These steps ensure communities can be powered by clean, affordable energy when we heat our homes or drive our cars.
Oil and natural gas companies have invested more in low emissions technology than the rest of the private sector and the government combined. In 2017 alone, several of the world’s largest oil and natural gas companies invested $6.3 billion in low emissions technology and research to address climate concerns. This unmatched contribution to protect and improve the environment shows how committed the oil and natural gas industry is to do its part to address climate concerns.
Innovations and advancements in oil and natural gas development allow the industry to develop and deploy cleaner energy technologies and world-class emissions control systems. This has led to the development of pioneering technologies to capture, store and reuse carbon dioxide, automation, and robotics. It has also led to the development of optical gas imaging cameras and drones to detect and repair leaks. These state-of-the-art operations are making a big impact in addressing climate concerns head on.
Thanks to smart policies and innovative technologies, U.S. carbon emissions have fallen to their lowest levels since 1994. While emissions in many other major countries continue to rise, energy companies across Texas have joined the Environmental Partnership to share best practices in reducing emissions. These advancements are the bedrock of the industry’s commitment to progress and are a major reason why air quality has dramatically improved over the last 20 years.
Global CO2 emissions plateaued in 2019, with the United States seeing the largest decline in energy-related CO2 emissions. This positive development was largely driven by a switch to natural gas, according to a February report from the International Energy Agency. The report also indicates the vast opportunities that still exist for natural gas to drive emissions reductions around the world.
Texas oil and natural gas companies are consistently striving to find innovative ways to minimize flaring and methane emissions in the production and transportation of our state’s natural resources.
The Texas Methane and Flaring Coalition is just one example of industry demonstrating its commitment to advancing solutions to environmental concerns. Announced in March, the Texas Methane and Flaring Coalition is an alliance of Texas oil and natural gas trade associations, along with nearly 40 Texas energy companies, whose mission is to work together on environmental progress. Focused on industry-led solutions to minimize flaring and methane emissions, the Texas Methane and Flaring Coalition will collectively identify and promote operational and environmental recommended practices.
For more information on the Texas Methane and Flaring Coalition, visit www.texasmethaneflaringcoalition.org.
FUELING OUR ECONOMY. FUELING OUR FUTURE.
In fiscal year 2019, the Texas oil and natural gas industry paid more than $16 billion in state and local taxes and state royalties – the highest total in Texas history. This is the equivalent of $44 million each day that directly funds our schools, universities, roads and first responders.
The total from 2007 – 2019 is over $149 billion.
Oil and natural gas royalties to state funds – particularly the Permanent University Fund and Permanent School Fund which support Texas public education – also broke records in fiscal 2019. In fact, 98% of the state’s oil and natural gas royalties were deposited in these funds with the PUF receiving $1.02 billion and the PSF receiving $1.11 billion. Texas school districts directly received $1.54 billion dollars in property taxes from mineral properties producing oil and natural gas, pipelines, and gas utilities. Counties received $398.7 million in oil and natural gas mineral property taxes.
No matter where you live in Texas, the oil and natural gas industry benefits you. Oil and natural gas does more than fuel our cars and power our homes. It does more than form the building blocks of our everyday goods and secure our nation. Every aspect of life in Texas positively benefits from a robust oil and natural gas industry – whether you live near the oil patch or not. The industry anchors our economy by creating high-paying jobs and by generating revenues unmatched by other industries in Texas, and it doesn’t stop there. The oil and natural gas industry is central to our lives, producing products and materials that we use every day like plastics, medicines, computers, life-saving devices and much more.
With billions of dollars invested, hundreds of thousands of employees and $16 billion in taxes and royalties last year alone, oil and natural gas continues to be the heartbeat of the Texas economy.
As Texas grows, so must our infrastructure. Oil and natural gas infrastructure creates jobs and supports economic growth in Texas communities. Building the energy infrastructure we need is the best way to affordably meet the electricity demands of Texas.