Record amounts of oil and natural gas exploration taxes flowed into the Texas coffers in fiscal 2022, which ended August 31 — totaling more than $10 billion.
That doesn’t include the severance taxes that operators pay to extract oil and natural gas — or the royalties, fees, property taxes, and sales taxes that they also pay.
Surge Energy US announced this week that it has contributed more than $7 billion to the state’s economy in its seven years through November. This amount includes oil and gas revenues, royalties and labor interest payments, and production taxes.
The company attributes this milestone to its continued growth through acquisitions and ongoing development projects. Surge officials note that the $7 billion it has contributed benefits the state economy and local communities through capital investments, royalties to mineral owners interested in its acreage, contributions to state and local taxes, and job creation have benefited.
Since its inception in 2015, Surge has paid more than $1.75 billion in working interest payments to partners and royalties to mineral owners.
“We believe Surge has had a positive impact on the state of Texas,” Travis Guidry, vice president of corporate development and investor relations, told Reporter-Telegram in an email. “In addition to contributing $7 billion to the Texas economy, we have also made a difference by employing employees and contractors directly. We currently employ 200 full-time employees and contractors. There is also a significant indirect impact on job creation through the service companies we have partnered with.”
In addition, Guidry wrote, “We also believe that our industry is vital to the Texas economy because we believe the oil and gas industry provides a relatively inexpensive and reliable source of energy that helps people lead better lives.” respectively.”
Chief Executive Officer Linhua Guan said in a statement, “Surge is proud to celebrate this significant achievement that has contributed $7 billion to the Texas economy in our short seven-year history as a company. These earnings, labor interest payments, royalties and production taxes have had a significant economic impact in Texas and we look forward to future growth opportunities.”
Surge Energy is focused on the development, exploration, production and acquisition of oil and natural gas reserves in the Midland Basin. The Company currently owns approximately 114,000 net acres in the Permian Basin. According to Guidry, Surge is currently operating three drill rigs at its Moss Creek project in Howard and Borden counties. He wrote that Surge plans to continue at this level into 2023 and is likely to remain at this level “barring any significant shift in commodity prices.”
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