Texas oil and gas industry to add 24,000 jobs, generate more than $320 billion by 2022

Texas’ oil and gas industry is expected to boom in 2022, generating more than $320 billion, adding more than 24,000 jobs and surpassing 2021 levels in oil and gas production.

The Texas Association of Independent Producers and Royalty Owners (TIPRO) released Report In the year on Monday detailing the dynamics of the industry in 2022.

That gross regional product (GRP) is nearly four times that of the next closest state, California Increase More than 120 billion dollars From 2021 – reducing the amount that can only be explained for inflation.

In 2020, GPP It was $278 billion. In the year By 2022, the Texas oil and gas industry will account for 16 percent of the state’s economic output.

In total, more than 347,000 Texans work in the industry, and the average annual salary for those workers is $140,000.

Data for the last two months of 2022 is not yet available, but as of October, it was the state. as soon as In the year By 2021, it will reach one million barrels of oil and 400 billion cubic feet of gas.

Like the rest of the state’s economy, the oil and gas industry is recovering from the shock caused by the coronavirus pandemic and government-ordered shutdowns — which halted all travel and dramatically altered the energy demand landscape.

More than half of the jobs added by 2022 were in support services for oil and gas operations; Oil and gas drilling, machinery manufacturing and construction have also added large numbers of workers.

“Despite a number of unique challenges, including supply chain bottlenecks, inflationary pressures, labor shortages and a hostile federal policy environment, the US oil and gas industry continues to provide significant economic support through 2022,” said TIPro Chairman and President Jude Walker. and CEO of EnerVest, Ltd. at the time of his release. “Oil and natural gas development led by Texas operators will, in any realistic scenario, play an important role in meeting growing global energy demand for decades to come.”

The oil and gas industry paid nearly $12 billion. Farewell tax In calendar year 2022, it will almost double from last year. That total is one-fifth of the state. Planned Treasury and Savings Account Profits. When expanded by all state taxes and royalties, the figure rises to $24.7 billion, according to TIPRO data.

That pot of dollars will be a feature of this year’s Legislature, with interests vying for a record-sized slice of the pie. Property tax cuts, school funding and teacher salaries, infrastructure projects and many other topics are all on the agenda of the Legislature.

Dallas Federal Reserve Quarterly survey About one-third of respondents to oil and gas company executives identified inflation and supply chains as the “biggest drag” on industry growth. About 10 percent cited the federal government’s regulatory position as the biggest obstacle.

One of those executives wrote in the “Special Comments” section that “Energy policies have become ridiculously arbitrary, except for increasing vitriol and the success of regulations and fees in killing off large parts of the energy industry.”

Not since I lived in Bakersfield in the mid 80’s when the price dropped to $6 a barrel and was a young entrepreneur have I been so desperate.

Overall, the Texas economy is recovering remarkably well from the turmoil of the past few years. The state’s adjusted unemployment rate Baptized Below 4 percent in December for the first time since February 2020.

Looking ahead, Tipro’s report says US gas exports are expected to increase further due to European gas market disruptions due to the Russia-Ukraine conflict, as countries previously dependent on Russian gas turn to other sources either on demand or on their own accord.

That supply shift has opened up a gap for Texas gas to fill, and that’s reflected in the industry’s massive GPP recovery over the past year.

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