Texas set a series of new milestones in 2024 for its oil and natural gas sector, according to the Texas Oil & Gas Association (TXOGA). In nearly every facet of the industry—from crude production and pipeline expansions to refining capacity and exports—Texas broke records, underscoring its position as a global energy leader.
Statewide crude production shattered previous highs in six of the past 12 months, topping out at 5.86 million barrels a day in October 2024. That figure alone accounted for 44% of all U.S. oil production, thanks mostly to prolific yields in the Permian Basin of West Texas. The U.S. Energy Information Agency noted that new production per rig-month in the Permian rose by 21% year-over-year in October.
The story was much the same for natural gas, where Texas posted six new monthly highs for marketed production. Overall, the Lone Star State supplied nearly one-third of all natural gas produced nationwide last year. Operators also set another record by surpassing one trillion cubic feet of natural gas in a single month six different times in 2024.
Infrastructure growth kept pace with the surge in activity. Texas pipelines now stretch more than 465,000 miles—an increase of 13,000 miles over the past year—to handle the state’s booming output. Meanwhile, liquefied natural gas (LNG) operations contributed over $60 billion to local economies in coastal regions, reflecting Texas’s rising profile in the global export market.
Leaders in the state’s oil and gas sector credit several factors for Texas’s ongoing success. Supportive policies from Governor Greg Abbott and the legislature, alongside the predominance of private land—where federal red tape is less of a concern—have helped operators stay competitive. Texas officials, including the governor, have consistently opposed or challenged federal regulations they believe could hinder production, often winning legal battles in the process.
For Todd Staples, president of TXOGA, 2024’s achievements move Texas closer to Governor Abbott’s goal of outpacing France to become the world’s seventh-largest economy. Staples praised the energy industry’s “unmatched, repeat economic performance,” citing record-breaking production, pipeline expansions, and tax revenues. He also highlighted a 26% drop in methane emissions from Permian Basin operations—equivalent to taking every EV in the U.S. off the road—showing that record output and environmental improvements can go hand in hand.
The flaring rate fell by 60% since 2019, landing under 1% of total gas produced in the state. Many companies are on track to eliminate routine flaring entirely by 2030. Operators emphasize that no other place in the world extracts, transports, and refines oil and gas with comparable safety and environmental standards. Meanwhile, energy-led alliances like the Texas Methane & Flaring Coalition continue pushing down emissions even further.
Alongside these operational records, the industry paid $27.3 billion in state taxes and royalties during the 2024 fiscal year—more than the annual tax revenue of 34 other states. Direct employment hovered at around 492,000 jobs, but TXOGA notes that when you factor in indirect and induced jobs, more than two million positions depend on the sector. As these numbers suggest, Texas’s oil and gas juggernaut continues to reshape the global energy landscape while generating substantial economic returns.
