The Texas Independent Producers & Royalty Owners Association (TIPRO) released its 10th annual “State of Energy Report,” revealing that the oil and natural gas industry continues to be a major economic driver in the U.S., especially in Texas, where the sector has maintained its dominant role.
In 2024, the U.S. oil and gas industry supported more than 2 million direct jobs, with total direct and indirect employment reaching nearly 23 million. The industry’s payroll totaled $168 billion, with an average annual wage of $81,808. The oil and gas sector also purchased over $865 billion in goods and services, benefiting more than 900 business sectors across the country. In terms of regional economic contributions, the sector generated a Direct Gross Regional Product (GRP) of over $1 trillion.
Texas once again led the nation in oil and gas employment, accounting for 23 percent of all oil and gas jobs nationwide. The state’s oil and gas industry supported 480,460 direct jobs, up by more than 10,600 positions from the previous year. This brings the total number of direct, indirect, and induced jobs linked to the industry in Texas to approximately 2.8 million. Additionally, the industry’s contributions to Texas’ economy were substantial, with total goods and services purchased in 2024 reaching $307 billion, 81 percent of which came from Texas-based businesses. Direct GRP for the Texas oil and gas industry hit $366 billion, supporting 15 percent of the state’s economy.
Texas also set new production records, producing over 2 billion barrels of oil and 12.7 trillion cubic feet (Tcf) of natural gas, further solidifying its position as the top producer in the nation. This contributed to a record U.S. oil production average of 13.2 million barrels per day and natural gas output of 113 billion cubic feet per day in 2024.
“Despite facing a range of challenges, the U.S. oil and gas industry remains a cornerstone of the economy, providing reliable energy and supporting millions of jobs,” said T. Grant Johnson, chairman of TIPRO. “We look forward to working with policymakers to maximize our nation’s energy potential, with Texas continuing to lead the way.”
Geopolitical tensions, including conflicts in the Middle East and Ukraine, have created uncertainty in global energy markets. In 2024, the U.S. continued to be a key energy supplier, with European nations accounting for 55 percent of U.S. liquefied natural gas (LNG) exports. Total U.S. LNG exports reached 88.3 million metric tons, an increase from the previous year, driven largely by Texas natural gas production. This growth is expected to continue in 2025 as LNG exports are projected to average 14 billion cubic feet per day.
The report also highlighted Texas’ growing electricity demand, driven by rapid population growth and the emergence of industries such as data centers and artificial intelligence. By 2030, the Electric Reliability Council of Texas (ERCOT) anticipates that peak load could nearly double to 152 gigawatts. Natural gas is expected to play a crucial role in meeting this demand, with projections suggesting it will account for around 33.9 percent of Texas’ electricity generation by 2030.
“Record natural gas production was key to meeting both domestic and global energy demand in 2024,” said Ed Longanecker, president of TIPRO. “We remain committed to supporting the industry and policies that allow it to thrive.”
The Texas oil and gas industry also had a significant impact on state and local economies, with a record $27.3 billion in taxes and royalties paid in Fiscal Year 2024. With the industry continuing to expand, it remains a cornerstone of both Texas and national economic strength.
As the U.S. Energy Information Administration (EIA) predicts further growth in oil and gas production for 2025, TIPRO remains optimistic about the future, especially in Texas, where the industry shows no signs of slowing down.
Key Texas Oil & Gas Industry Highlights:
- Texas accounted for 23% of all U.S. oil and gas jobs in 2024, with 480,460 direct jobs.
- Texas oil and gas paid an average annual wage of $128,876, 74% higher than the state’s private-sector average.
- Texas led the nation in oil production with 2 billion barrels, and natural gas production with 12.7 Tcf.
- The industry supported 38% of Texas’ economy, with $307 billion in goods and services purchased.
- Texas oil and gas businesses paid a record $27.3 billion in state and local taxes and royalties in 2024.
