Texas

Land ownership

Natural resource extraction varies widely from state to state. In Texas, extractive industries accounted for 7.0% of gross domestic product (GDP) in 2016.

Texas leads the nation in production of:

  • Crude oil: 36.1% of U.S. Production
  • Wind: 25.3% of U.S. Production
  • Natural gas: 24.9% of U.S. Production

Natural resource ownership in the U.S. is closely tied to land ownership. Land can be owned by citizens, corporations, Indian tribes or individuals, or governments (for instance, federal, state, or local governments). Much of the data on this site is limited to natural resource extraction on federal land, which represents 1.8% of all land in Texas.

Texas also borders an offshore area with significant natural resource extraction, which may contribute to the state’s economy. For production and revenue data about offshore extraction near Texas, see the Gulf of Mexico.

For a detailed view of how natural gas extraction affects communities in Texas, read the case study on Tarrant and Johnson Counties.

Production

The Office of Natural Resources Revenue collects detailed data about natural resource production on federal land in Texas.

Downloads and documentation

Gas

34,341,801 mcf of gas were produced on federal land in Texas in 2017.

County production

Bowie CountyBrazoria CountyBrazos CountyBurleson CountyDenton CountyFreestone CountyGalveston CountyGrayson CountyHarrison CountyHemphill CountyHidalgo CountyHill CountyHouston CountyJackson CountyJasper CountyJohnson CountyJones CountyKarnes CountyLee CountyLive Oak CountyMcMullen CountyMontague CountyMontgomery CountyNacogdoches CountyNewton CountyNueces CountyOchiltree CountyParker CountySabine CountySan Augustine CountySan Jacinto CountyShelby CountyStarr CountyTarrant CountyTaylor CountyWalker CountyWashington CountyWheeler CountyWilbarger CountyWise CountyZapata CountyBowie CountyBrazoria CountyBrazos CountyBurleson CountyDenton CountyFreestone CountyGalveston CountyGrayson CountyHarrison CountyHemphill CountyHidalgo CountyHill CountyHouston CountyJackson CountyJasper CountyJohnson CountyJones CountyKarnes CountyLee CountyLive Oak CountyMcMullen CountyMontague CountyMontgomery CountyNacogdoches CountyNewton CountyNueces CountyOchiltree CountyParker CountySabine CountySan Augustine CountySan Jacinto CountyShelby CountyStarr CountyTarrant CountyTaylor CountyWalker CountyWashington CountyWheeler CountyWilbarger CountyWise CountyZapata County
County production of gas in 2017 (mcf)

Oil

417,442 barrels of oil were produced on federal land in Texas in 2017.

County production

Bowie CountyBrazoria CountyBrazos CountyBurleson CountyChambers CountyDenton CountyFreestone CountyGalveston CountyGray CountyGrayson CountyHarrison CountyHemphill CountyHidalgo CountyHouston CountyJackson CountyJasper CountyJones CountyKarnes CountyLee CountyLive Oak CountyMcMullen CountyMontague CountyMontgomery CountyNacogdoches CountyNewton CountyNueces CountyOchiltree CountyParker CountySabine CountySan Augustine CountySan Jacinto CountyShelby CountyStarr CountyTarrant CountyWashington CountyWheeler CountyWilbarger CountyWise CountyZapata CountyBowie CountyBrazoria CountyBrazos CountyBurleson CountyChambers CountyDenton CountyFreestone CountyGalveston CountyGray CountyGrayson CountyHarrison CountyHemphill CountyHidalgo CountyHouston CountyJackson CountyJasper CountyJones CountyKarnes CountyLee CountyLive Oak CountyMcMullen CountyMontague CountyMontgomery CountyNacogdoches CountyNewton CountyNueces CountyOchiltree CountyParker CountySabine CountySan Augustine CountySan Jacinto CountyShelby CountyStarr CountyTarrant CountyWashington CountyWheeler CountyWilbarger CountyWise CountyZapata County
County production of oil in 2017 (bbl)

Revenue

Companies pay a wide range of fees, rates, and taxes to extract natural resources in the United States. What companies pay to federal, state, and local governments often depends on who owns the natural resources.

Natural resource extraction can lead to federal revenue in two ways: non-tax revenue and tax revenue. Revenue data on this site primarily includes non-tax revenue from extractive industry activities on federal land.

Downloads and documentation

Revenue from production on federal land by resource

When companies extract natural resources on federal lands and waters, they pay royalties, rents, bonuses, and other fees, much like they would to any landowner. This non-tax revenue is collected and reported by the Office of Natural Resources Revenue (ONRR).

For details about the laws and policies that govern how rights are awarded to companies and what they pay to extract natural resources on federal land: coal, oil and gas, renewable resources, and hardrock minerals.

The federal government collects different kinds of fees at each phase of natural resource extraction. This chart shows how much federal revenue was collected in Calendar year (CY) 2017 for production or potential production of natural resources on federal land in Texas, broken down by phase of production.

Commodity1. Securing rights2. Before production3. During productionOther revenue
Oil and Gas
Oil & Gas
$13,516,929
$0$271,567Oil$2,335,952NGL$11,977,466$188,892
Other products
Carbon dioxide
$5,496
$0$0$5,496$0
All commodities
All commodities
$13,522,426
$0$271,567$13,061,967$188,892
Commodity1. Securing rightsCompanies pay bonuses or other fees to secure rights to resources on federal land2. Before productionCompanies pay rent on federal land while exploring for resources3. During productionCompanies pay royalties after production beginsOther revenueMinimum or estimated royalties, settlements, and interest payments
Oil and Gas
Oil & Gas
$13,516,929
$0$271,567Oil$2,335,952NGL$11,977,466$188,892
OnshoreBonus: The amount offered by the highest bidder$1.50 annual rent per acre for 5 years
$2 annual rent per acre thereafter
12.5% of production value
Other products
Hardrock Acquired lands$6,500 prospecting permit fee$37 annual rent per acre + $0.50 annual prospecting fee per acreRoyalty rates are determined by leasing officers on an individual case basis (no minimums apply)
All commodities
All commodities
$13,522,426
$0$271,567$13,061,967$188,892
Other revenue streams
Hardrock mining on public domain landsFederal revenue from hardrock mining on public domain land occurs through the claim-staking process and is managed by the Bureau of Land Management (BLM). It is not included here, because the dataset does not have state-level data. Learn more about hardrock mining on federal land.
Onshore solar and wind energyFederal revenue from onshore renewable energy generation on federal land is not included here, because that dataset, from BLM, does not have state-level data. Learn more about onshore renewables on federal land.
To see how much was collected nationwide for all revenue types, including BLM revenues, see federal revenue by company.

Most non-tax revenue collected by ONRR comes from counties with significant natural resources on federal land.

Downloads and documentation

We don’t have detailed data about federal, state, or local revenue from natural resource extraction on land owned by Texas, corporations, or individuals. However, companies generally must pay state and local taxes.

Disbursements

After collecting revenue from natural resource extraction, the Office of Natural Resources Revenue distributes that money to different agencies, funds, and local governments for public use. This process is called “disbursement.”

Most federal revenue disbursements go into national funds. For detailed data about which expenditures and projects from those national funds are in Texas, see nationwide federal disbursements.

ONRR also disburses some revenue from natural resource extraction to state governments. In 2018, ONRR disbursed $60,099,354 to Texas. This included revenues from both onshore and offshore extraction in or near Texas:

  • $4,847,389 was from onshore revenues
  • $55,251,965 was from offshore revenues

State and local governments in Texas receive a portion of revenue generated from offshore oil and gas production under the Gulf of Mexico Energy Security Act (GOMESA).

RecipientFY2019
State of Texas$46,313,471.21
Aransas County$466,178.75
Brazoria County$779,380.51
Calhoun County$628,382.99
Cameron County$658,510.61
Chambers County$406,855.52
Galveston County$1,024,591.91
Harris County$2,263,694.49
Jackson County$300,964.36
Jefferson County$794,042.37
Kenedy County$633,309.25
Kleberg County$459,956.66
Matagorda County$901,868.30
Nueces County$614,486.78
Orange County$392,328.39
Refugio County$285,845.51
San Patricio County$298,699.69
Victoria County$310,203.11
Willacy County$359,068.63

Downloads and documentation

We don’t have detailed data about how states or local governments distribute revenue from natural resource extraction.

State governance

Because Texas has significant natural resource extraction, we gathered additional information about state agencies and regulations that govern natural resource extraction in Texas: