TIPRO: US oil and gas benefited economy despite challenges

Jan. 31—A detailed study of the state of energy in both the US and Texas has been released by the Texas Independent Producers & Royalty Owners Association. The association offered its eighth-annual analysis of national and state trends in oil and natural gas employment, wages and other key economic factors for the energy industry in 2022.

"Despite facing a number of unique challenges, including supply chain bottlenecks, inflationary pressures, workforce shortages and an adversarial federal policy environment, the U.S. oil and gas industry continued to offer significant economic support in 2022," said Jud Walker, chairman of TIPRO and president and CEO of EnerVest Ltd in a statement.

According to TIPRO, the industry supported a total of 948,943 direct jobs in the U.S. last year, with total direct and indirect jobs tied to the industry exceeding 19 million. The U.S. oil and natural gas sector paid a national annual wage averaging $120,665 during 2022, 74% higher than average private sector wages. Payroll in the U.S. oil and gas industry meanwhile totaled $114 billion and direct Gross Regional Product (GRP) was $854 billion in 2022, or approximately 3% of the U.S economy.

"Oil and natural gas development, led by Texas operators, will play an important role in meeting growing global energy demand for decades to come under any realistic scenario," added Walker.

What does Oil & Gas mean for Texas?

* Texas led the nation in oil and gas jobs with 347,828 people employed in this industry. Approximately 37% of all oil and gas jobs nationwide were located in Texas last year.

* When incorporating direct, indirect and induced multipliers for oil and gas employment, the industry supported a total of 2.6 million jobs in Texas last year.

* Texas was the leading state by employment in every single sector in 2022, with the exception of natural gas distribution (California).

* Oil and gas jobs in Texas paid an annual average wage of $139,061, 103% more than the average private sector job in the state.

* Texas had the highest oil and gas payroll in the country in 2022 ($48 billion), with California coming in at a distant second ($11 billion), then Louisiana ($7.6 billion).

* Oil production in Texas was 1.83 billion barrels in 2022. New Mexico had the second highest oil production with 534 million barrels, followed by North Dakota with 393 million barrels produced.

* Texas led the country in natural gas production with a record 11.2 Tcf produced in 2022, followed by Pennsylvania with 7.6 Tcf.

* Texas had the highest rig count in the country in 2022 with an average of 380 active rigs. The number of rigs in Texas increased from 332 in January 2022 to 410 in December 2022.

* In 2022, total direct gross regional product for the Texas oil and natural gas industry was $322 billion, or 16% of the Texas economy. Once the typical multiplier for gross regional product is incorporated, the Texas oil and natural gas industry supported 40% of the Texas economy.

* The Texas oil and natural gas industry purchased U.S. goods and services in the amount of $264 billion, 82% of which came from Texas businesses.

* The Texas oil and natural gas industry paid a record $24.7 billion in state taxes and state royalty payments in 2022.

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(c)2023 the Midland Reporter-Telegram (Midland, Texas)

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