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Revenue From Oil And Gas Down By 30 Percent In Fiscal 2016 In Texas

The Texas Oil and Gas Association has released new economic data.

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Oil pump jack.

The Texas oil and gas industry contributed $9.4 billion in state and local taxes and royalties in fiscal year 2016.

That's still about a fifth of the state's total tax revenue.

But it's substantially less than in the record year of 2014, when the industry contributed $15.7 billion, and down $4.4 billion from fiscal 2015.

Todd Staples, president of the Texas Oil and Gas Association, said with oil prices expected to inch closer toward $60 a barrel in the next couple of years, he's cautiously optimistic for future numbers.

"Stronger prices would certainly put more Texans back to work quicker and give our units of government more of the resources they need," he said. "But with the global situation that we're in, I think it's too early to expect any immediate changes."

Staples pointed out that Texas added 4,700 oil and gas jobs from September to December, and employees in that business on average earn more than twice as much as those in other sectors.

He said he is not worried about the industry's increased use of technology and what it means for the number of jobs in the future.

"That makes everyone's job safer, when you have a higher level of efficiency that enhances your competitive positioning," Staples said.

During the oil slump of the past two years, Texas has lost about 100,000 oil and gas jobs.

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Florian Martin

Florian Martin

Business Reporter

Florian Martin is currently the News 88.7 business reporter. Florian’s stories can frequently be heard on other public radio stations throughout Texas and on NPR nationwide. Some of them have earned him awards from Texas AP Broadcasters, the Houston Press Club, National Association of Real Estate Editors, and Public Radio...

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