June 11, 2025

Texas Oil & Gas Industry Achieves New Milestones

News Summary

The Texas oil and gas industry is experiencing remarkable growth as recent reports indicate record-breaking natural gas production and steady crude oil output. With a significant increase in energy exports, Texas solidifies its position as a vital player in the global energy market. The state contributes over 40% of U.S. crude oil production and nearly 30% of marketed natural gas. This article discusses the industry’s role in meeting both domestic and international demands while highlighting the importance of infrastructure investments for continued success.

Texas Reports Record Natural Gas Production and Steady Oil Output for May 2025

The Texas Oil & Gas Association (TXOGA) has revealed that natural gas production hit a record high in May 2025, while crude oil output remained stable. This report underscores Texas’ significant contribution to both the U.S. and global energy markets.

According to TXOGA’s June 2025 Monthly Energy Economics Review, Texas achieved natural gas gross withdrawals of 36.9 billion cubic feet per day (bcf/d), with marketed production reaching an unprecedented 34.4 bcf/d. Meanwhile, the state maintained its crude oil production at 5.7 million barrels per day (mb/d), keeping Texas at the forefront of energy production in the country.

Furthermore, natural gas liquids (NGLs) production also saw strong numbers, totaling 4.0 mb/d. The steady growth in these production metrics reflects Texas’ role as a critical energy provider for both domestic and international markets.

Significant Contributions to Energy Supply

From January through May 2025, Texas accounted for a notable 42.2% of total U.S. crude oil production and 29.2% of U.S. marketed natural gas production. This robust output is essential for meeting both domestic needs and international demand.

In March 2025, Texas exported $19.8 billion in energy products, marking an increase of 2.6% compared to the previous year. The breakdown of these exports includes $8.8 billion from crude oil, $5.5 billion from refined products, $2.9 billion from hydrocarbon gas liquids, and $2.6 billion from natural gas (including liquefied natural gas and pipeline exports).

International Market Reach

Texas produced 27.7 billion cubic feet per day of dry natural gas in March, with consumption of 11.8 billion cubic feet per day in-state, while exporting 12.5 billion cubic feet per day—including LNG and pipeline deliveries to Mexico. Notably, Europe received 61% of Texas’ LNG exports, while 40% of crude oil exports went to the continent. In addition, the Asia Pacific region received 57% of Texas’ hydrocarbon gas liquids and 43% of crude oil exports.

The Importance of Infrastructure

The TXOGA report emphasizes the critical role of market access and infrastructure investments in delivering these record production volumes to consumers and export markets. These investments are necessary to ensure the continuous flow of energy supplies to meet the growing demands across various sectors.

Conclusion

The latest findings confirm Texas’ status as a leader in the energy sector, showcasing its ability to not only fulfill domestic energy needs but also to remain a key player in international markets. The findings serve as an important reminder of the ongoing vitality and potential for Texas’ energy industry to meet both current and future global demands, providing reliable energy solutions for families, communities, and trading partners alike.