Texas oil, natural gas production reached record highs in 2023

Texas’ oil, natural gas and natural gas liquids (NGLs) production in 2023 reached new record highs, according to newly updated data released by the U.S. Energy Information Agency.

The new annual data for 2023 shows that Texas crude oil production reached 5.5 million barrels per day (mb/d), its NGL production reached 3.3 mb/d, and its natural gas marketed production reached 29 billion cubic feet per day (bcf/d). Texas’ natural gas underground storage capacity grew to a record 863.4 bcf.

Texas also broke four new monthly records in December 2023: natural gas marketed production reached 32.6 bcf/d, refiner and blender net inputs reached 5.69 mb/d, refined petroleum product exports reached 4.39 mb/d, and crude oil supply reached 9.9 mb/d – the greatest supply for the month on record. The crude oil supply includes in-state production in addition to imports and interstate net receipts.

“Texas’ new production and export milestones continue to highlight the Lone Star State’s role as a global energy leader, showcasing that energy leadership starts – and should stay – in Texas,” Texas Oil & Gas Association President Todd Staples said. “In the face of global instability and ever-increasing demand for energy and the products that make modern life possible, Texas remains committed to delivering the affordable, reliable oil and natural gas that our state, nation, and world need.”

In an analysis of the EIA data, TXOGA’s Chief Economist Dean Foreman notes that in December, Texas’ NGL exports were the greatest on record since 2010.

According to U.S. International Trade Commission data, Texas exported over $221 billion of oil, natural gas and derived products in 2023. The majority of exports went to Asian Pacific and European countries.

TXOGA’s projections for February 2024 show that Texas’ production remained near record levels at 5.6 mb/d of crude oil, 3.5 mb/d of NGLs, and 31.6 bcf/d of natural gas marketed production. Texas’ market shares also increased, according to the analysis. In 2023, Texas’ annual average share of U.S. output rose to 42.7% for oil, the highest since 2020, and rose by 27.9% for natural gas marketed production, the highest since 2014.

“Texas’ strong performance across the energy value chain has meant that U.S. energy increasingly depends on our state,” Foreman said. “Ample production has replenished oil and natural gas inventories and kept downward pressure on consumer prices despite solid domestic consumption and record-highs for oil and natural gas exports. It’s a remarkable productivity narrative.”

The Texas oil and natural gas industry broke multiple records last year, reporting the highest ever totals in production, exports, refining outcomes and crude oil supply. At the same time, the industry propelled Texas to lead the U.S. in emissions reductions, as noted by the Texas Methane & Flaring Coalition, Texans for Natural Gas, and The Environmental Partnership, The Center Square has reported.

The Texas oil and natural gas industry also paid the largest amount in tax revenue in state history of more than $26.3 billion last year. What the industry paid in taxes and royalties translated to $72 million a day to fund public schools, universities, roads, first responders and other services.

Industry production taxes and royalties nearly exclusively finance three state funds. The Permanent School Fund and the Permanent University Fund, which support Texas public education, each received $1.8 billion last year.

Texas’ Rainy Day Fund has received more than $31.2 billion from industry production taxes since it was created in 1987.

“This type of unmatched, repeat economic performance does not happen by accident,” Staples said. “Success is the result of non-stop industry innovation, investment and operational efficiencies that shattered a string of oil and natural gas production, supply, refining and export records last year – all while achieving world-leading environmental progress.”