Powering Progress: How Oil & Gas Makes a Difference

June 24, 2025

Oil and natural gas generated by American upstream producers are essential to our country’s prosperity, supporting growing energy demand and generating vital tax revenue that funds schools, colleges, first responders, and other critical public services. These producers work to build lasting partnerships within local economies, giving back to the communities they call home. In New Mexico, local community leaders recently highlighted the positive impacts being felt in oil and gas producing regions around the country. 

More Funds for Services & Education: As America’s second-biggest oil producer and fifth-largest natural gas producer, New Mexico state and local governments received $13 billion in Fiscal Year 2024 revenue generated by the oil and gas industry.¹ These proceeds allow county governments flexibility in the quality and range of services they provide. In Eddy County, Commissioner Bo Bowen notes the county has established a “nest egg” for their budget. A local millage fee means “we can operate our government for an entire year without receiving any other additional funds.” The county’s education system benefits too, as the financial burden for building or replacing public schools is greatly reduced. Nearby, Southeast New Mexico College recently added a new trade and technology facility, further supporting the region’s workforce development. 

Supporting Nonprofits: A United Way community service program in Carlsbad, New Mexico underscores the industry’s commitment to going the extra mile as responsible corporate citizens. Local oil and gas producers not only provide financial support but also actively strengthen the organization’s reach. Employees from Mewbourne Oil Company, for example, regularly participate in “Day of Caring” projects to assist elderly residents, distributing food and helping with home and building repairs.  

Nationwide Impacts: Developing oil and gas provides a real-world economic impact that benefits state and local communities every time a well is drilled, a rig is built, and a barrel is produced. The revenues are making a difference for millions of Americans: 

• Since 2008, the industry in West Virginia has paid more than $5.4 billion in severance (charges on natural resources extracted for use outside the state) and property taxes to support essential public services.²  

• Pennsylvania’s severance tax, known as the Impact Fee, has generated more than $2.5 billion since 2012.³ Additionally, the industry paid an additional $2.3 billion in royalties (payments for accessing minerals) to both landowners and the state.⁴ 

• In Texas in 2024, the industry paid $27.3 billion in state and local taxes and royalties to fund schools, infrastructure, emergency response, and municipal functions. The state’s Permanent School Fund supported by these revenues is the largest educational endowment in America, valued at more than $50 billion.⁵  

• Wyoming’s industry in 2022 generated $1.7 billion in property and severance taxes. The industry has delivered more than $11 billion to support Wyoming’s public needs over the last six years.⁶ 

Upstream Producers Make a Difference: As a whole, the U.S. oil and gas industry supports nearly 8% of our country’s Gross Domestic Product, with revenues from production directly benefiting state and local governments. The industry contributes billions annually through taxes and fees – funding everything from public schools and roads to environmental programs to emergency services. Upstream producers alone generate nearly half a trillion dollars in total economic value, supporting more than 3 million jobs with an average salary of $107,000 per year (nearly double the U.S. average), and are essential drivers of education, local infrastructure, and community services. 

In communities like Carlsbad, New Mexico, oil and gas revenues are helping improve one of the fundamentals of a successful life: education. In the words of Dr. Kevin Beardmore, President of Southeast New Mexico College, “it’s helping everyone.” The same is true in countless other communities supported by upstream producers. Providing energy security for America and the world generates benefits at every step. By supporting local education, philanthropy, and government, oil and gas makes a difference.  

¹ New Mexico Oil and Gas Association, Drilling Down on Dollars: The Role of Oil and Gas in New Mexico’s Budget, https://assets.nationbuilder.com/nmoga/pages/2283/attachments/original/1745341868/NMOGA_TRI_Study_-_FINAL.pdf?1745341868 

² Gas & Oil Association of West Virginia, Gas Facts 2023-2024, https://gowv.com/resources/gas-facts/ 

³ Marcellus Shale Coalition, Pennsylvania Impact Fee 2023, https://marcelluscoalition.org/wp-content/uploads/2023/06/Impact-Fee-2023.pdf 

⁴ American Exploration & Production Council, Energy Royalty Payments: Directly Benefiting The Economy, March 5, 2024, https://axpc.org/wp-content/uploads/2024/03/2024-03-05_Energy-Royalty-Payments-1.pdf 

⁵ Texas Oil & Gas Association, 2024 Annual Energy & Annual Economic Impact Report, January 7, 2025, https://www.txoga.org/2024eeir/

⁶ Petroleum Association of Wyoming. Facts & figures. https://pawyo.org/facts-figures/