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Texas should broaden economic base as oil and gas decline

August 12, 2021

Fort Worth Star-Telegram:

It’s no secret that the Texas oil and gas industry took a massive hit from the COVID-19 pandemic, leading to the loss of nearly 60,000 jobs last year. Trade groups have trumpeted the importance of supporting energy production as part of the state’s economic recovery plan, highlighting the $411 billion that oil and gas generated for Texas in 2019.

But a new independent report is challenging some of the tried and true wisdom that “what’s good for oil is good for Texas.” The analysis from the Institute for Energy Economics and Financial Analysis found that the oil and gas industry is responsible for 10 percent of the Texas gross domestic product, down from 21 percent in 1981.

While Texas oil and gas companies continue to dominate in refining and petrochemical production, their contributions to tax revenue, employment and overall economic growth across the state have been in decline for decades, according to report co-author Trey Cowan.

[Haley Samsel] 

More:  Oil and gas industry is on the decline in Texas. What does that mean for state’s future?

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