The Texas oil and natural gas industry employed 495,501 Texans last year, according to the Texas Oil & Gas Association’s (TXOGA) 2025 Energy and Economic Impact report, which was released this week.
The sector that employed the most workers in 2025 was ‘support activities for oil and gas operations’, with 110,612 employees, followed by ‘gasoline stations with convenience stores’, with 81,268 employees, and ‘oil and gas pipeline and related structures construction’, with 50,667 employees, the report showed.
‘Crude petroleum extraction’ ranked as the oil and gas sector with the fourth most employees in 2025, with 49,187, and ‘oil and gas field machinery and equipment’ ranked fifth, with 29,280, the report revealed.
TXOGA stated in the report that “every direct job in the Texas oil and natural gas industry creates approximately two additional jobs”, outlining that “1.4 million total jobs [were] supported across the Texas economy” in 2025.
Texas oil and natural gas employers paid an average of $133,095 per job in 2025, according to the report, which noted that this was 68 percent more than the average paid by the rest of Texas’ private sector.
The report showed that oil and gas taxes came in at $54,481 per employee last year, while “all other sector taxes” were $7,225 per employee.
“Based on the combined state and local taxes and state royalties attributable to the industry, the oil and natural gas industry pays far more per employee than the average across all other Texas private-sector industries,” TXOGA stated in its report.
According to TXOGA’s latest report, in 2025, the Texas oil and natural gas industry paid state and local taxes and state royalties totaling $27.0 billion. TXOGA pointed out in the report that this equates to nearly $74 million every day.
A statement sent to Rigzone by the TXOGA team this week highlighted that the $27.0 billion paid in state and local taxes and state royalties was the second highest total in Texas history.
The report also pointed out that the Texas oil and natural gas industry broke production and export records last year.
“In Texas, lasting progress is built on performance, not opinion,” TXOGA President Todd Staples said in the statement sent to Rigzone.
“Talk doesn’t grow jobs, keep homes warm or cars running. Action, investment, and innovation drive greatness across the Texas economy,” he added.
“Even during a year dominated by market challenges, Texas oil and natural gas has proven – once again – to be the power behind Texas’ progress,” he continued.
Staples went on to highlight in the statement that “$27 billion in state and local tax revenue and state royalties from the Texas oil and natural gas industry translates to nearly $74 million every day that pays for Texas’ public schools, universities, roads, first responders and other essential services”.
“Beyond this essential tax revenue, Texas oil and natural gas delivers energy security at home and global stability for our allies,” he said.
Staples added in the statement that, “despite market challenges, the oil and natural gas industry shattered another string of records in fiscal year 2025”.
“Non-stop industry innovation, investment, and operational efficiency raised the bar for performance, once again,” he added.
The TXOGA President went on to note in the statement that TXOGA’s report “underscores a simple truth: Texas runs on oil and natural gas, made possible by hundreds of thousands of skilled men and women who rise before the sun to keep our economy moving and our communities secure”.
“In the coming year, we look forward to continuing our partnership with state leaders and communities to keep Texas powered, prosperous, and prepared for what comes next,” he added.
TXOGA describes itself on its website as “a statewide trade association representing every facet of the Texas oil and gas industry including small independents and major producers”.
“Collectively, the membership of TXOGA produces approximately 90 percent of Texas’ crude oil and natural gas and operates the vast majority of the state’s refineries, LNG export capacity, and pipelines,” the site adds.
To contact the author, email andreas.exarheas@rigzone.com
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