Texas oil and gas producers paid more in taxes and royalties last year as oil prices climbed and drilling activity ramped up in the Permian Basin and elsewhere in the state.
The industry paid more than $11 billion in royalties and state and local taxes in fiscal 2017, up from the $9.4 billion it paid the prior year. Texas school districts and counties received $1.1 billion and $336 million in mineral property taxes, respectively.
The increase coincided with the so-called shale boom in West Texas that has produced enormous amounts of cheap oil and natural gas in the prolific Permian Basin and other reserves. In November, U.S. oil production topped 10 million barrels a day for the first time in 50 years.
The boom has transformed the U.S. energy export market to rival that of the Middle East. American oil exports hit record levels late last year, and the U.S. Department of Energy expects that the nation will become a net exporter of natural gas this year for the first time since 1957.
“These energy outcomes were unthinkable a decade ago,” TXOGA president Todd Staples said in in a conference call. “American crude oil is a game changer in international trade.” [read more]
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