Austin, Texas, January 15, 2026
In 2025, Texas’ oil and natural gas industry achieved remarkable milestones, including surpassing 2 billion barrels in oil production and an average annual wage of $133,095 for workers. The industry contributed $27 billion in tax revenues and set records for exports, solidifying Texas’ position as a global energy leader. With significant employment growth and infrastructure expansion, the industry demonstrated resilience and continues to impact the state’s economy and energy security positively.
Texas Oil and Natural Gas Industry Shattered Records in 2025
Austin, Texas – In 2025, the Texas oil and natural gas industry achieved unprecedented milestones, setting new records in production, employment, and tax contributions.
Record-Breaking Production
The state reached a historic high in oil production, surpassing 2 billion barrels for the first time. In July 2025, crude oil production peaked at 5.85 million barrels per day, and in August, marketed natural gas production reached 35.4 billion cubic feet per day.
Significant Economic Impact
The industry contributed $27.0 billion in state and local taxes and state royalties in fiscal year 2025, marking the second-highest total in Texas history. This substantial revenue supports essential services such as public education, infrastructure, and emergency response.
Employment Growth
Employment in the Texas oil and natural gas sector increased to 495,501 workers in 2025, with an average annual wage of $133,095. This represents a 68% higher wage compared to the average in other private-sector industries in the state.
Export Achievements
Texas also set records for exports of crude oil, condensate, liquefied natural gas (LNG), and total natural gas, underscoring its role as a global energy leader.
Infrastructure Expansion
To accommodate increased production and exports, pipeline infrastructure expanded to 472,790 miles, and LNG export capacity from Texas and Louisiana approached 13.0 billion cubic feet per day, with additional projects underway.
Industry Outlook
Despite market challenges, the Texas oil and natural gas industry demonstrated resilience and growth in 2025, contributing significantly to the state’s economy and energy security.
Key Features
| Feature | Details |
|---|---|
| Record Oil Production | Surpassed 2 billion barrels for the first time in 2025. |
| Record Natural Gas Production | Marketed production reached 35.4 billion cubic feet per day in August 2025. |
| Economic Contribution | Contributed $27.0 billion in state and local taxes and state royalties in fiscal year 2025. |
| Employment | Employed 495,501 workers with an average annual wage of $133,095 in 2025. |
| Export Records | Set records for exports of crude oil, condensate, LNG, and total natural gas. |
| Infrastructure Expansion | Pipeline infrastructure expanded to 472,790 miles; LNG export capacity approached 13.0 billion cubic feet per day. |
FAQ
What was the total oil production in Texas in 2025?
Texas surpassed 2 billion barrels of oil production for the first time in 2025.
How much did the Texas oil and natural gas industry contribute in taxes in 2025?
The industry contributed $27.0 billion in state and local taxes and state royalties in fiscal year 2025.
How many people were employed in the Texas oil and natural gas industry in 2025?
The industry employed 495,501 workers in 2025.
What records did Texas set in oil and natural gas exports in 2025?
Texas set records for exports of crude oil, condensate, liquefied natural gas (LNG), and total natural gas in 2025.
How did the Texas oil and natural gas industry perform in 2025?
Despite market challenges, the industry demonstrated resilience and growth, contributing significantly to the state’s economy and energy security.
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