(The Center Square) – Out of the $27 billion in taxes the Texas oil and natural gas industry paid in 2025, nearly $4 billion was paid to school districts and county governments.
The total was compiled by the Texas Oil & Gas Association in its newly released 2025 Annual Energy & Economic Impact report.
In fiscal 2025, Texas school districts received $2.6 billion and county governments received $1 billion in property taxes paid from mineral properties producing oil and natural gas and pipeline and gas utility companies. The data excludes refineries, petrochemicals and other industry properties. The fiscal year begins Sept. 1.
In some counties and in dozens of school districts, the oil and natural gas industry is the primary source of tax revenue – and in some cases representing 96% of tax revenue.
The counties and school districts receiving an economic windfall from the industry are located in two major oil producing regions in Texas, the Permian Basin (61 Texas counties) and Eagle Ford Shale (27 Texas counties). The greater Permian Basin accounts for nearly 40% of all oil produced in the United States and nearly 15% of domestic natural gas production, according to Federal Reserve Bank of Dallas data.
Ten counties in the U.S. (eight in Texas and two in New Mexico) produce 93% of domestic oil production, the U.S. Energy Information Agency notes.
In Texas, Martin and Midland counties reported the greatest production growth last year, representing 21% of U.S. production growth; Andrews, Glasscock, Howard, Loving, Reagan and Ward counties represented 19% of production growth, The Center Square reported.
In 2025, taxes paid by the industry accounted for nearly 96% of the tax base in Loving County and nearly 95% in Martin County, both in the Permian Basin, according to TXOGA compiled data. Industry taxes also accounted for nearly 93% in McMullen County and 91% in LaSalle County, both in Eagle Ford Shale, according to the data.
Industry taxes represented the greatest percentage of the tax base in the counties of Borden (89%), Dimmit, Irion, Karnes, Reeves, Andrews, Crockett and Culberson (82%) in the two oil producing regions, according to the data.
By dollar amount, Reeves County received the most industry tax revenue of $109.4 million followed by Loving ($69 million), Martin ($46 million), Ward ($39 million), Midland ($38 million), LaSalle ($35), Upton ($33 million); Andrews, Pecos and Webb counties each received roughly $25 million last year, according to the data. All but two of these counties are located in the Permian Basin.
The industry also paid the lion’s share of property taxes to several public school districts last year, according to TXOGA compiled data.
Klondike ISD, located in Dawson and Martin counties in the Permian Basin, is nearly entirely funded by the industry. Industry taxes represent 99.6% of its tax base, according to the data.
Not far behind are Grady ISD and Grandfalls-Royalty ISD, both in Ward County, where industry taxes represent nearly 95% and 90%, respectively, of the districts’ tax base. Industry taxes also accounted for nearly 88% of the tax base of Coahoma ISD in Howard and western Mitchell counties last year. The counties are all located in the Permian Basin.
In the Eagle Ford Shale, industry taxes account for nearly all of the tax base of Karnes City ISD (97%) and Falls City ISD (95%) in Karnes and Wilson counties, according to the data.
Not far behind were Cotulla ISD in LaSalle County (91%), Crystal City ISD in Zavala County (nearly 87%) and Dilley ISD in LaSalle County (nearly 80%).
The school districts that received the most industry taxes by dollar amount are located in the Permian Basin. Pecos-Barstow-Toyah ISD in Reeves and Ward counties received the most of $309.3 million. Midland ISD received nearly $223 million, followed by Wink-Loving ISD in Winkler and Loving counties of $157 million and Rankin ISD in Upton County of nearly $119 million.
In Eagle Ford Shale, the school districts that received the most industry taxes by dollar amount were Carrizo Springs and Cotulla ISD (nearly $60 million each) and Karnes City ISD ($54 million).
Several dozen school districts received more than 50% of their revenue from industry taxes, according to the data.
These amounts are in addition to industry taxes funding two major state education funds last year: $1.72 billion to the Permanent University Fund and $1.4 billion to the Permanent School Fund.
