Texas Oil and Gas Assoc President - Todd Staples

Episode Transcript

Speaker 1 (00:00):
Welcome to the nationally syndicated Energy Mix Radio Show, produced
by the Energy Network Media Group. The Energy Mix Radio
Show will give you an inside look at the energy
industry and how it affects you by talking with industry leaders, experts,
and government officials on the Energy Mix Radio Show.

Speaker 2 (00:17):
And welcome to the Energy Mix Radio Show, your go
to source for all things energy. I'm Kimbalato, the host,
and today we have a very special guest joining us.
Todd Staples, the president of Texas Oil and Gas Association,
will be joining us and giving us the latest insights
on their annual twenty twenty four energy and Economic Report.

(00:37):
But first, Todd, I'd like to welcome you on the show.
Welcome back to the Energy Mix Radio Show.

Speaker 3 (00:44):
Thank you, Kem. It's great to be back with you.
Twenty twenty five as full of opportunities for all and
gas to continue to fuel our modern lives, fuel avery
aspect of what we do, and there's a lot of
good things to celebrate. There's also many things to be
cautious about. So we're approaching this new year with optimism,
but also I guess you might call it guarded optimism.

(01:07):
There's a lot of misinformation out there, appreciate the job
that you do and your show and getting just a
candid conversation about energy and how we can all move
forward together.

Speaker 2 (01:16):
Well, you know, I hope too. A little bit later
on in the show talk to you a little bit
about we have an upcoming session and then we also
have a new president, and so I want to just
briefly touch on how do you think President Trump will
change the energy industry as well as are there anything
that we should keep an eye out when session opens.
But before we get to those questions, how about giving

(01:39):
our listeners a brief overview of the mission of Texas
Oil and Gas.

Speaker 3 (01:44):
Yeah, the mission of the Texas All and Gas Association
is to be a clear and robust champion for all
and gas activity, to champion science based solutions and free
market principles to guide us. Our membership can produce is
probably around ninety percent of our state's crude all. They're

(02:06):
responsible for a vast majority of our states pipelines, our
states refining capacity. They operate our states LNG facilities and
operate most of those. We have some of the smallest
companies Texas and Texas to the largest companies in the
world that are members of ours and we appreciate the

(02:26):
role that they play and being the cornerstone of the
Texas economy.

Speaker 2 (02:30):
Texas is such an important state when we talk about energy,
and of course we have an upcoming session that I
believe opens next week on the fourteenth. Can you tell
us what do you think this session looks like when
we talk about energy. Does it look like it's going
to be a smooth year for energy or do you
see a lot of changes bumps in the road? How

(02:51):
does energy look for this year's session?

Speaker 3 (02:54):
You know, I think Texas leaders understand and appreciate the
value of the Texas all in natural get industry. They recognize,
as does President Trump, that all in gas is an
asset not a liability. And you know, for the most part,
I think Texas has grown and prospered and millions of
people have jobs and a high quality of life, and

(03:15):
people are flocking to Texas because our legislators and elected officials.
Governor Abbott, Lieutenant Governor Patrick and others recognize that business
as a partner, right. I mean, you can take your
capital and your jobs anywhere in the world if you
want to. If it's that type of business and you're

(03:36):
not a service business servicing someone. But even so you
can still move. But the reality is is that we
look to business to be responsible, to be accountable, but
we also looked them to be a partner, and we
look for them to develop solutions to the challenges. And
so as we think about Texas all in gas in
this next legislative session, obviously the House is going to
pick a new Speaker of the House on the fourteenth.

(03:59):
That could be a live lea process, A lot of
opinions about that. But whoever is speaker, we want to
work with them in the in the House and the
Senate and the governor to address what we need. We need.
We need a consistency and regulations. We need consistency in legislation.
Tax relief is going to be at the top of

(04:22):
mind for legislators. Control Or Hagard discussed the twenty big
and dollar surplus. He may, he may, he may revise
that number even upwards. I don't know, but they have
a lot of surplus money. A lot of it is
because of the success of the al and gas industry.
So as they work to lower property taxes for all taxans,
we think that's probably smart policy. We do think it

(04:42):
needs to be broadly delivered to all Texans and the
relief and not and not divide property tax payers between
residential and industrial or business, because we're all in this
together and we need to need to all have a
reduction there. There are some economic development issues I think

(05:03):
that are smart that the legislature needs to look at.
To attract high tech, we think that's important because they
can go to other states and get offered packages that
makes them more attractive than us, and we don't like
to lose it anything in Texas, and so we need
to look at that. Water is going to be a
big topic this next session. Kim water for all Texas,
the movement of water. I know Senator Charles Perry's discussed

(05:27):
that quite a bit. I've had conversations with state Representatives
Dustin Burrows about that, State Representative Brooks Landgraf and others,
Representative Cody Harris about water. They're all focused on that.
On in gas has a role to play. You know,
we produce, you know, a tremendous amount of produced water

(05:47):
as we produce the five point eight million barrels a
day of all in Texas, not counting what we produce
in natural gas. In gls and others. But so we
need a place to go with that produce water. Right now,
we're injecting it, and so we're looking for alternatives to injection.
There's been some pilot projects at the Railar Commission at

(06:08):
TCQ discussing and deliberating the putting that produced water to
beneficial use, and we think the science is there to
back that up. And so we're looking at the regulatory
structure on how you can give certainty to companies if
they want to invest in infrastructure to move that water
to put it for beneficial use. How can the regulatory

(06:31):
process be addressed to make certain that we give the
reliability of these companies that they can count on government.
So those are the few of the things that I
think are really big topics that we'll be looking at.
Orphan wells. You and i've discussed before, and that's a
concern on the minds of a lot of Texans. The

(06:51):
oil and gas industry is paying for plugging those wells. Kim,
I think that's an important decision. We need to make
companies plug these wells themselves, way vast more than what
ends up the responsibility of the state when a company
goes out of business, and even when that occurs, tax
payer money is not being used except for oil and gas.
Tax payer money money is being used because we pay

(07:13):
in much more than we get in return for services.
We also pay fees, a tremendous amount of fees that
use to fund these programs. But having said all that,
we're looking for ways to reduce the number of Oarshman wells.
We're looking for ways to allow companies to in their
planning process to maybe be a part of that solution.

(07:33):
We're looking at the number of inactive wells, those wells
that are still owned by companies but that are not
active any longer and after a certain period of time,
do we need to modify the regulations around those inactive
wells so that we can reduce the number of inactive
wells and companies can take responsibility for those themselves. So

(07:56):
it's going to be a busy session. I think it'll
be a successful one, but it will be busy.

Speaker 2 (08:00):
You know, Todd, It sounds like it's going to be
a busy but great session. Specifically when we talk about energy,
and it is no secret that Texas is one of
the most important states, if not the most important state.
When we talk about energy we have and we're blessed
to have two major ports. One the porter Corpus Christi
is the number one exporter of crude and second in LNG.

(08:25):
This is a very important state and I'm happy to
see that our legislators understand that and they craft good
policies to continue to see a flurry. Which leads me
into how important your report is, the annual twenty twenty
four Energy and Economic Report, because today you're going to

(08:46):
discuss with us the highlights of what the oil and
gas industry has produced for the great state of Texas.
So let's start with can you give me the highlights
of the key achievements that Texas oil and gas industry
in twenty twenty four their significance into the state's economy.

Speaker 3 (09:05):
Sure, I'll start out, Kim by just discussing the new
numbers that were achieved and then and then we can
go into the the to how this was accomplished. But
it's remarkable to me to think that we set new
records again this year.

Speaker 2 (09:20):
We shattered the didn't we send new records last year too?

Speaker 3 (09:24):
We did? We did, and last year twenty twenty three
record breaking number twenty six point three billion dollars paid
in state and local taxes and state royalties, an unmatched
contribution from this industry above and beyond what others do.
In twenty twenty four, that record was broken yet again
by almost a billion dollars twenty seven point three billion

(09:46):
dollars paid in state and local taxes and state royalties. Kim.
That's seventy four point eight million dollars each and every day.
That's funding our schools, funding our roads, funding our universities,
funding our first spawners. Twenty seven point three big and
dollars exceeds the earned tax revenue in thirty four states

(10:11):
in our country. Wow, that's bigger than their entire tax revenues.
I mean just from one industry, our industry alone, this
number equates to over almost three quarters of a trillion dollars.
When you look at the private sector Texas gross state product,
we represent over thirty percent of the Texas private sector

(10:33):
of growth state product over almost what a course of
tree dollars when you look at that. So these are
big numbers. They're contributing specifically to some very important I
think universally supported efforts. And we go into those breakdown
a little bit at this time and get into that.
Will that be helpful, Kim.

Speaker 2 (10:53):
We are Let me ask you before we go to
break real quick. When we break down these numbers, I
want you to tell the listeners though, seventy eight point
four billion record number, and we know that they're coming
in in taxes and we're going to break it down.
But are there any other states as fortunate as Texas

(11:14):
that actually get this kind of of a windfall If
you will, Yeah to Texas, So then there.

Speaker 3 (11:23):
Is no one that comes in a close second Texas.
And because of our wet We've got several things going
on here right we have we're blessed with natural resources,
but natural resources alone doesn't do it. Venezuela has the
most proven all reserves in the world, yet that country
ranks a distant twenty fifth in production. So we've got

(11:47):
we've got natural resources, we have generational know how, and
we've got good leadership. And I think those three factors
are really big. New Mexico ranks a distant second in
terms of revenue that's generated. I think North Dakota is
certainly important, Louisiana is obviously an important partner, Oklahoma is

(12:08):
obviously important, Wyoming you have about thirteen states that have
significant you know production in Texas. But Texas at our
peak in twenty twenty four produced forty four percent of
the nation's total crudal Yeah, it almost. Yeah, just Texas.

Speaker 2 (12:26):
Alone, we are so blessed.

Speaker 3 (12:28):
And then just one one more quick thing, natural gas
KIM we produced about thirty percent of our nation's total
a little over twenty nine on average, we've been at
a peak of thirty, So I mean, just Texas alone.
That's that's remarkable because it's fueling lives. It's what it's doing.

Speaker 2 (12:45):
Yeah, and when we come back from break, we're going
to drill down of how it affects a person's life
with these kind of numbers in the way of Texas
being raised, with the great state of Texas and it's citizens.
Let's take a quick break. You're listening to the Energy
Mixed Radio Show. We'll be right back, and we're back.
You're listening to the Energy Mixed Radio Show. My host

(13:05):
today is Todd Staples, the president of Texas Oil and
Gas Association, better known as TECHSOGA. Todd, you were telling
us about the annual report that your association does. It's
called the twenty twenty four Energy and Economic Report, and
it basically covers what the oil and gas industry has
contributed in the way of energy and economics. And so

(13:28):
you gave us a high level of what it's producing.
Let's drill down now, how has the Texas oil and
gas industry contributed with the amount of money that we've
been raising through taxes? How has it contributed to the
public education funding through royalties and taxes that were collected
in like twenty twenty four. Can you break that down

(13:49):
for us?

Speaker 3 (13:50):
I sure can, cam and then I think that's so
important and looking at these right now is just what
it means, because you know the big numbers twenty seven
point three billion in studying local taxes and orties seventy
four point eight million dollars a day, and here's where
that goes to some remarkable things. And this report can
be found on our website Texoga dot org and I'm

(14:11):
looking at it. One of the big funds is the
Permanent School Fund received one point five billion dollars, the
Permanent University Fund one point nine billion dollars. The state's
Permanent School Fund is the largest public endowment in the
nation KIM, larger than Harvard's as a matter of fact,

(14:32):
and it's because of all in natural gas. Our independent
school districts received directly two point nine billion dollars and
property taxes alan because of all in natural gas and
the contributions that we have. And so yes, it continues

(14:53):
to play a big, big role making good things happen
for our state. It's policy partnerships, it's perseverance that this
industry has demonstrated each and every day in order to
accomplish these amazing objectives. And I just want to give
you a real snapschannel where these funds stand in terms

(15:14):
of their total endowment right now, and can consider they've
been the legislature has been funding out of these funds, right.
I mean, these funds are distributed, but even the mouth
that's distributed and goes with good use. Here's where they
stand today because of all and natural gads. The permanent
school fund is at fifty seven point three billion dollar fund.

(15:38):
The permanent university fund is thirty one point seven billion dollars.
I mean, I can go all and on the rank
and several others. These are amazing.

Speaker 2 (15:50):
Yeah, you know, it makes you wonder that these educational
the educational funding that is given to them, these schools
and school districts and colleges, universities. The oil and gas
industry is actually what's funding the bulk of how they
stay in existence, Isn't that correct?

Speaker 3 (16:12):
And to that point, Kim, just to give you an
idea about how big a part of the tax base
in some of these communities and some of these school
districts that all in gas is. In the Pecos Barstow
Tooya district, all in gas is eighty three percent of
the tax base. Yeah, and United in Webb County in

(16:33):
the Eagle Ford area that you're very very familiar with,
almost thirty seven percent of the tax base, Carrizo Springs
almost eighty eight percent of the tax base. Yeah, and
some smaller districts Wink Loving and Ranking it's over ninety
two percent of the tax base. So yeah, without these

(16:55):
these schools changed dramatically, these districts, these community changed dramatically. Obviously,
the state funding is designed here. If some districts get
a windfall profit, then that that windfall amount goes to
other districts to help them or uh and and if
they're if there's a shortage, then the state steps in.
But it's changing lives, changing communities, and so you look

(17:17):
at where these school districts are located, and then and
then those counties benefit, you know, similarly to what we've
been discussing here about.

Speaker 2 (17:24):
The schools and Todd you being a past legislator yourself,
can you explain to us we've got about three two
minutes how the state of Texas when was the last
time we were in a deficit and explain how we
might have to carry this over over break, which I'm
fine with that when when session opens, Texas has to

(17:46):
balance our budget before we can get any laws passed.
Can you explain that process to our listeners so they
understand how important this money is like a savings account
for us.

Speaker 3 (17:55):
That's that's it, Kim. Fortunately, we're not like Washington, d c.
Texas forefathers required us to have a balanced budget constitutionally,
and so we've had some serious downturns. And I remember
in one to three time period when I was in
the state Senate, we had to make cuts because tax
hikes are temporary, but tax you know, downturns in the

(18:18):
economy or temporary if you manage it. Ryan. We've had
others in twenty eleven, and this oil and gas pays
into our state's Randy Day Fund, which is essentially our
state's savings account. It's technically called the Economic Stabilization Fund,
but we put in an over thirty three billion dollars
into that fund since we started keeping up with this

(18:41):
and since its inception, and that's been used to fund
our schools, it's been used to fund some needed repairs
to county roads that much. Many counties in the Eagle
Ford benefited, our disaster relief, retired teachers have benefited. And
so the state taking these surplus years putting it into
our economics Ergization Fund has been a huge benefit that

(19:04):
benefited Texans in countless ways.

Speaker 2 (19:07):
You know, prior to this job, I was in the
non world, and I love to tell this story because
I think it helps the average Joe, the everyday person,
understand how beneficial this money is. In one of those
years you talked about that we were in a deficit.
At the time, we had Governor Perry and he ordered

(19:28):
a twenty percent cut across the board. This meant all
the school systems, the hospital's, law enforcement, paramedics, ems, and
you see the effects of it on the state in Texas.
It was pretty devastating when you cut twenty percent of
a budget of absolutely necessary services. And that following session,

(19:49):
I will not forget it. That was the birth of
Texas Equal Forward and all the revenue that was raised
got us out and got us going again and so
we could start, you know, passing bills and legislating. People
just don't understand how important that fund is and how
oil and gas contributes, because at that point they had

(20:11):
to lay off teachers, they had a firing freeze on
law enforcement, on ems. Our hospitals were full because mentally
ill people couldn't get to their doctors because it was
a three month waiting period, so they were going to
be they were going to the ers to get their
prescriptions filled. It has a train wreck effect, was my point.

(20:32):
And thank god that we have the oil and gas,
you know, contributing to the state's budget and the economy.
Let's take a quick break. You're listening to the Energy
Mix radio show.

Speaker 3 (20:42):
We'll be right back.

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Speaker 2 (21:22):
Welcome back to the Energy Mix radio show. My guest
today is Todd Staples, the president of the Texas Oil
and Gas Association, better known as TECHSOGA. Todd, I'm really
excited that TECHSOGA produces this report annually because I think
it's important for us all to understand how truly crucial
oil and gas their part that they play, not just

(21:43):
in providing an absolutely necessary resource for Texas, United States
and the globe, but it's also a really important resource
to have here for the state of Texas, and your
annual report, the twenty twenty four Energy and Economic Report
kind of highlights all the different things that oil and

(22:05):
gas is contributing to the great state of Texas. Let
me ask you, we're going to switch gears. We're going
to talk about policy. Now, what role did policy and
partnerships play in the industry's record breaking performance despite and
we've talked about this a lot too, federal challenges and
then of course market volatility here.

Speaker 3 (22:28):
Yeah, it certainly has. These phenomenal results of the men
and women in the oil patch are in spite of
some obstacles that have been put in our way. I mean,
you and I have talked about the LNG export ban
on new permits and the disruption that that caused in planning.

(22:50):
We've had pipeline permits that have been canceled, and so,
you know, to get product to our ports into our
downstream industry, that's been a real challenge we've had, uh,
you know, federal agencies under this the previous administration that

(23:11):
that failed to celebrate how our lives are better, how
our nation is stronger and more secure than ever before
because we don't have to rely on foreign sources of energy.
You know, the the European countries that and and Asian
countries that have been depending on Russian source fuel has
been their lives have been turned upside down because of

(23:32):
Russia's invasion in Ukraine. And fortunately the United States was
able to step up and so are in Texas. You know,
we're able to build infrastructure projects, we're able to get
them permitted. It's not always easy. We've seen some difficulties
and in some of the permitting areas that we're looking

(23:53):
at now, there are ways to make that better at
just without sacrificing uh andronmental oversight, without sacrificing uh. Looking
at communities and make certain that they're being taken care of.
And so I think that's why you've seen people invest
in Texas is because we have that balanced approach that

(24:16):
understands that it is a partnership and we were all
in this together and we've got to come up with
with a proper accountability, the proper oversight. But we have
to have consistency in the way that we do that.
And I think that's that's what makes Texas unique, that's
what sets us apart. But it's it's in jeopardy quite frankly, Kim.

(24:37):
I mean, even good intentions go bad, right when when
when we when we take up issues, we have to
be cautious. We have to have a candid conversation about
their impact and and what it what it might mean. Uh.
That's that's very important that we do that, and so
we're we are we are watching constantly vigilant and wanting

(24:59):
to have a com conversations with anyone that has concerns
about the way business is done. And I think we'll
be fine if we continue that. But you know, like
our give you a quick example our electricity market and
how that's changed. Electricity costs have gone up even while
natural gas prices have been negative in a permium basin

(25:20):
for you know, forty percent of the time last year.
And so we need to keep a close guard on
what we do encourage new entrance into the market, and
the legislature's doing that with the Texas Energy Fund creating
some opportunities to make certain we're getting dispatchable energy sources
in terms of our electrical grid. That's just one example

(25:42):
how we have to be cautious.

Speaker 2 (25:44):
When we come back from break, Todd, I want to
talk about the environmental progress because, as you mentioned earlier,
we're having you know, record numbers for us, but the
oil and gas industry has really stepped up and has
made a difference in how they have been able to
lower admissions on their own without having regulations that require

(26:07):
them to do it, and I want to get into
that when we come back from break. You're listening to
the Energy Mixed radio show and we'll be right back.

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Speaker 2 (27:22):
Welcome back to the Energy Mix radio show. My guest
today is Todd Staples, the president of the Texas Oil
and Gas Association. Todd, thank you for joining me on
the show today. You just released the twenty twenty four
Energy and Economic Report, the annual report that tells all
of us here in Texas how great the oil and

(27:43):
gas industry did for the great state of Texas and
its citizens. But we've talked about the numbers. Now I
want to talk about the environmental progress that they have made,
specifically in the oil and natural gas industry, in their
part in reducing methane admissions as well as flaring rates.

(28:04):
Can you tell us a little bit about that.

Speaker 3 (28:06):
Sure, Kim. You know, you know it's interesting. No one produces, transports,
or refines all in natural gas with a greater commitment
to safety and the environmental progress than the American operator.
And that is really led by Texans when you consider
we represent about thirty four percent of our nation's refining capacity.

(28:26):
Now we having a pipeline miles Kim, to almost go
the moon and back, you know, and then and we're
producing so much of our nation's crew to all in
natural gas that we've discussed before. There are some initiatives
that were voluntary initiatives that were started by leaders in
the Texas all in natural gas industry that has resulted

(28:48):
in significant declines and methane emissions carbon dioxide emissions. The
Texas Methane and Flaring Coalition is one of those industry
lad initiatives that the Environmental Partnership is an another one
of those initiatives. But the numbers are really remarkable, and
I have those stats with me. Between twenty fifteen and
twenty twenty two, methane emissions have dropped forty two percent

(29:12):
in key production regions across the United States, according to
the EPA. This is not my data, which I will
we have got some of the greatest experts in the
nation that we use, but this is this is EPA data. Yeah. Also,
if you look at an analysis from S and P
Global Commodity Insights, they say that methane emissions from all

(29:34):
the natural gas production operations in the Permian in twenty
twenty three decreased twenty six percent from the previous year.
That's astounding reductions. And they point out real quickly that
that's equal to the total amount of carbon emissions avoided
by every electric vehicle on the road in the United

(29:54):
States that year.

Speaker 2 (29:55):
What do you think the oil and gas industry is
doing to lower it? How are they? I know it's
technology and things, but what is your best ability to
explain to the listeners how they're doing this.

Speaker 3 (30:11):
That's a great question because tangibly the way that technology
is being used, it's being used on multiple fronts. It's
being used to reduce these emissions that we've been discussing.
There's handheld imaging devices, there are satellite images. There's the
thing that's on everybody's minds right now, drones that are

(30:33):
used in the off field to make these observations. But
they're also using artificial intelligence and data analytics by looking
at the individual well production and by looking at the flows,
and they're able to automate some of these activities to
give alerts early and so that they can take some

(30:55):
initiatives to get some things done. So there's some old
school ways of doing things that the tried and true
methods that you never give up on human beings walking
around those sites and making adjustments. But there's also technology
that's trending and giving them the information and Kim, it's
exciting because these digitalization of the all patch is making

(31:20):
a big difference. Is why we've achieved these record setting
production numbers that we can even get into a little
bit later. But one operator really did a good job
explaining for me, if you've probably driven a standard transmission
like I have in the patch, you got to push
the clutch in shift the gear yes and then, which

(31:40):
I still like to do and some of my bigger
trucks and things like that. But automatic transmissions have certainly
made driving easier for the mass trap public. This automation
that's occurring is using automatic gear shifting to make things
happen quicker, more real time the all patch and that's

(32:01):
how that's being done. And in fact, in Texas, the
flying rate has dropped by sixty percent since June of
twenty nineteen, with a flying rate of less than one
percent in August of twenty twenty four, which means KIM
that ninety nine percent of the natural gas produced in
Texas was being used beneficially. Operators are working to eliminate

(32:23):
routine firing by twenty thirty. Many companies have already achieved
that goal, so great results for sure.

Speaker 2 (32:30):
I think that Texas is the model, and if they
gave us the opportunity, we could teach the world how
to decrease quickly and avoid claimate crisis or at least attempted,
if they would learn from what Texas is doing. That's
kind of what I think. Let's move on real quick though,
and talk about we were talking about environmental progress. I

(32:52):
want to talk about innovation and efficiency and those record
production specifically in the key areas of the permium base
and and other regions. And the reason I want to
bring that up is help the listeners understand that I
understand right here through a lot of media reports that
we're going to have a significant challenge in trying to

(33:15):
keep up with all of these big processing centers, data
centers because of AI. And where are we going to
find that power to do that? So can you tell
us about how energy and efficiency is not only going
to keep up with what we need, but also to
we need more now, a lot more because of artificial intelligence.

Speaker 3 (33:37):
Jim, you're hitting on a topic that is really Texas
leaders are working on every day trying to find solutions
to the needs that we have. Fortunately, Texas on Gas
is going to be able to deliver. We all watched
our rig counts decline over the last few years. I mean,
you know, we have less than six hundred rigs operating

(33:58):
in the US today. That's a phenomenal drop from years ago,
and it's dropped significantly from the previous year. Yet production
has increased. The production in the premium basin has been
a twenty over a twenty percent increase in rig productivity
year over year. The Hainesville has experienced substantial Anadarko as well,

(34:23):
and that's because of the innovation. The technological advances that
we just discussed in the previous segment is the reason
that they've been able to do that. Now, we also
know that pipelines are being added significantly, companies are making
final investment decisions to move that product. But that's the
reason that we're seeing these levels of achievement is because

(34:47):
of this kind of productivity that's been increased and it's
led to remarkable results. In October of twenty twenty four,
we had a peak of five point nine million barrels
per day of crude production. We hit a peak in
February of twenty twenty four of four point two million
barrels per day of crudel and condensate exports. We've hit

(35:10):
a peak of one point five million barrels per day
in July twenty four for NGL direct use and refining.
We've had well had natural gas production in October of
twenty twenty four of thirty seven billion cubic feed per day,
which translates to about thirty four billion cubic feed per

(35:32):
day in terms of marketed production. That marketed production is
what is available to those that want to buy it
to go to using for power production, either using it
and converting it for electrons on the electricity grid, or
using it in direct power production. So it's just its astounding.

Speaker 2 (35:52):
What we're spounding. I would agree with you. Let's take
a quick break. When we return, I want to talk
about what it's going to take to maintain the energy
leadership and how we're going to focus on future infrastructure
for Texas and its needs. You're listening to the Energy
Mixed Radio Show and we'll be right back. Then we're back.

(36:12):
You're listening to the Energy Mixed Radio Show. My host
today is Todd Staples, the president of Texas Oil and
Gas Association Better known as Techoga Todd before the break,
I wanted to talk about the future infrastructure, but I
feel like you kind of answered a lot of that
in our previous segments. So I want to switch gears
because there's a really important topic that I don't want
to run out of time on, and that is the

(36:34):
jobs that are being created because of the oil and
gas industry. Now, it is no secret that oil and
gas pays well as far as salaries, and they do
provide a lot of jobs. So tell us a little
bit about how much job growth did we see due
to the oil and gas industry.

Speaker 3 (36:51):
And really what this boils down to is do I
have a job or not? And am I able to
support my family? And oil and natural gas is in
impacting the life of every Texan in a beneficial way,
because you don't even have to have a job directly
in the all pass to be benefited from this. But
I'll tell you this, we did set a new record
number again in the number of employees we in twenty

(37:14):
three there were an average four hundred and eighty thousand
Texans had a direct job. That number in twenty twenty
four was a clip now over four hundred and ninety
two thousand Texans have a direct job, and because of
those direct jobs, that also impacts indirect jobs of people
who have a job, and you can absolutely tie directly

(37:35):
because of the all field activity, that number goes to
about one point four one point five million Texans. And
then some analyzes that I've seen, Kim put that number
to what over two million Texans have a job either
directly or indirectly are induced because of all in natural gas,
and you're right, they do pay some of the best

(37:56):
in the state. In fact, the average was over one
hundred and twenty eight thou per year. That's seventy six
percent more than the average private sector job. It's astounding
of just how good these are. And you know, I've
talked to people Kim that you will go to the
permium base and work for two weeks on and then
come back to their community. The same for the eagle forward.

(38:18):
The industry is looking for talent. You Obviously, the technology
that we've talked about is being deployed in a much
bigger and more distinct way today and we're talking direct
support activities for old field operations crew to aill extraction,
drilling the wells pipeline transportation, merchant wholesalers, petrochemical manufacturing, petroleum refineries,

(38:44):
gasoline stations that are you know, delivering this fuel, fuel dealers.
They all play a big role and it's having a
big impact for certain and on the on the on
the point this out because I think it is very
relevant on a per employee basis. The text is All
in natural Gas industry paid fifty five thousand dollars in
state and local taxes and state loyalties in twenty twenty

(39:06):
four KIM. This is almost nine times higher than other
private sectors, which paid an average of just over six
thousand dollars on a per employee basis. And the reason
that the per job contributions matter is because most state
programs are driven by the size of the population, right,
I mean, school districts are driven by school population. You know,

(39:30):
other services are driven by population in those communities. And
so in a system that relies so heavily on business
to pay the cost of government, it's clear that all
in Natural Gas is punching above its weight class, not
only helping directly families who have jobs, but helping families
who don't have a job. In the all pass themselves.

Speaker 2 (39:51):
You know, steer is under you guys, South Texas Economic
Energy Roundtable, And I remember when Omar Garcia was there.
He would go around and he would talk to schools
and to legislators. But one of his favorite lines that
he loved to say was, you know, especially here, if
you're in San Antonio, there's a large Hispanic community, and

(40:14):
there's a lot of blue collar workers. And prior to
Eagle Ford Shell starting and the Permians too far away
for you know, it to matter really to us in
that way as far as jobs, he would say, this
is a game changer for you guys, and in the
way of if you can pass a background check and
a drug test, you can get a job in the

(40:36):
oil and gas industry. But specifically who he was talking
to was the blue collar worker that was either the mechanic,
the sheet metal, the welder, and those jobs that are important.
The way that the oil and gas industry pays those
people is significantly higher than the other and any other

(40:57):
type of company that they would go to work for.
And that's was his point, is that the oil and
gas industry, even at its I wouldn't call it the
lowest level because these are very important trades, but they're
typically not paid that high. The oil and gas industry
they pay them high. And always remember that because it's
a game changer for people who are in those professions

(41:18):
and not getting paid their worth, whereas the oil and
gas industry sees their value and pays them what they're worth. So,
in light of us talking about how oil and gas
provides high paying jobs and a lot of jobs for Texans,
I think that probably the listeners right now are thinking, well,
where do I go to get resources to see what
type of jobs, what is the biggest needs, what are

(41:40):
the salaries, what's in the greatest demand. Can you kind
of walk us through if somebody's interested in entering in
the oil and gas and resources available to them.

Speaker 3 (41:48):
Absolutely. Texaga has a career center cam that were companies
post jobs that are veritable and people can submit their
resumes that there's a function where the entity that we
work with in our career center can actually help people
apply and so you can find that at Texoga dot
org and search for career centers there. That's a great

(42:11):
resource if you want to get in the AI and
gas business. Also, if a lot of the producing areas
the companies are working with the high schools and the
community colleges to develop programs to equip students to be
of higher value when they get ready to go on
the AILL patch. And so you can obviously go directly

(42:32):
to work in the all patch, but you can also
go through some of these programs and be prepared and
if you want to get a degree. Obviously there's a
lot of different There's water that and hydrology that all
and gas companies have to manage. There's taxes that on
and gas companies have to pay. There are other legal

(42:54):
relationships between landowners that all in gas companies have to
work with. These are all in addition to the production
arenas of reservoir engineers, petroleum geologists and others that you
can get training to do. So there's there's a lot
of work. And I love it when I speak to
all and gass employees, Kim, because I say, who all

(43:15):
is in you know, legal, or who all is in production?
Who's in communications? And one personal raise their hand in communications,
I said, you've all failed the test here today, folks,
because if you're an oil and gas you need to
be involved in communications, which is what your program is
really all about. A real candid conversation about oil and gas,
because there's so much misinformation out there that doesn't tell

(43:37):
the truth about the benefits that oil and gas has
in fuelling our lives. And I, quite frankly, I think
that's what this last election was about. It was about
are we going to be energy independent? Are we going
to have access to the energy that we need? And
I'll tell you what what what? What locked this in
for me was I was visiting with a mechanic. He

(44:00):
was working on my car, and he told me after
the election, I'm so glad thanks turn out the way
they did. And I said, really, I am as well.
I'm wondering why you did. And he looked at me
and he said, it's chicken feed, Todd. And I said, well,
you've got to explain that a little bit. He said,
a few years ago, the price of a bag of
chicken feed was thirteen dollars. Now is twenty. That's been

(44:20):
the result of the kind of policies, and so going forward,
I hope that we're able to have better policies that
keeps inflation in check and help help helps consumers all
across our state and nation.

Speaker 2 (44:32):
Well Todd on January twentieth, twenty twenty five, a new
president takes over, and it'll be very interesting to see
President Trump's policies and how it affects the oil and
gas industry. So I have a feeling that we'll have
you back on the show to talk about this. But
that's all the time we have for this show. Thank
you for coming and explaining the twenty twenty four Energy
and Economic Report. Thank you for being my guest.

Speaker 3 (44:54):
Thank you.

Speaker 1 (44:55):
The Energy Mixed Radio Show is where we explore topics
that affect us all in the oil and gas indust
Every week, our host will interview the movers and shakers
in this fast paste industry. You'll hear from industry experts,
elected officials, and many more on the Energy Mix Radio Show.