The economy and energy of Texas
According to the US Department of Energy, the United States is the world's largest crude oil producer, pumping almost 13 million barrels a day. This article looks at Texas, the country's energy heartland and second most populous state.
The economy and energy of Texas
According to the US Department of Energy, the United States ranks first in the world for crude oil production, pumping almost 13 million barrels a day in 2023. Russia is second with 10.5 million bpd, and Saudi Arabia third, producing 9.6 million bpd in 2023. If Texas were an independent country it would rank fourth among the largest oil-producing nations, with 5.5 million bpd, and would be among the world’s ten largest economies with a GDP of $2.6 trillion. According to the US Bureau of Economic Analysis, Texas’s economy grew by 7.4% year on year in 2023, while the US economy grew by 2.9%. Al Arabiya reports that Texas produces and refines most of America’s oil and gas and ranks first among US states for GDP, population growth and exports.
The economy and energy of Texas
Texas is also the second-largest US state by area and population. More than 30 million people live there, making it the second most populous state after California. It is an important player in US political life, ranking second after California in the number of electors and seats in Congress. Texas’s economy is diversified. Besides oil and gas and petrochemicals, agriculture, machine building, technology, defence and aerospace are all growing strongly. The state leads on renewable energy, ranking first for wind power and second for solar in the United States.
The economy and energy of Texas
Texas also has the second-largest working-age population — more than 14 million people — one of the main drivers of the state’s development. Another reason for its economic growth is the state’s substantial investment in education. Texas has more than 180 colleges and universities. The tax burden on Texans is among the lowest in the country. Texas is one of seven states with no income tax, which makes it attractive to workers and businesses, stimulates the economy and speeds growth. Texas creates more new jobs than any other US state. Jobs are being created at about 4% a year, far above the national average of 2.7%.
The economy and energy of Texas
According to the US Department of Energy, Texas accounts for more than 42% of the country’s oil production and 27% of its natural gas production, making it America’s largest energy centre. Texas also refines about a third of US oil. Texans consume more energy than anyone else in the country, both per head and in total. Texas consumes roughly 365 TWh, or 10% of the US total. Most of Texas’s power plants generate electricity using steam turbines and internal combustion turbines running on natural gas. Gas-fired generation has boomed in the United States recently, and many such gas-fired plants are being built.
The economy and energy of Texas
Texas is also one of the leading states for space and space research. Houston hosts the Lyndon B. Johnson Space Center, NASA’s lead centre for developing crewed spacecraft, training astronauts and preparing crewed spaceflights, and for managing and controlling space missions. As for the military-industrial complex, defence is Texas’s second-largest economic sector after oil and gas. Texas is one of the centres for developing computer technology, components, systems and software, as well as semiconductors. The Austin area, for instance, is known as “Silicon Hills”, home to semiconductor manufacturers including Intel, Silicon Laboratories, AMD and others.