Energy industry groups tell Senate committee Texas leads production; urge LNG buildout, workforce supports and more enforcement on oilfield theft

Industry representatives told the Senate Natural Resources Committee that Texas stands near the top of global oil-and-gas production and urged the legislature to support infrastructure and workforce measures, accelerate export approvals and step up enforcement against organized oilfield theft.

Todd Staples, president of the Texas Oil and Gas Association, said Texas production continues to grow despite fewer rigs, citing industry efficiency and technology as drivers of higher output with fewer drilling rigs. Staples noted the sector supports hundreds of thousands of direct jobs and said industry-paid severance and other taxes contributed roughly $27.3 billion in state and local taxes and royalties in the most recent year described. He told the committee the state must provide permitting and pipeline infrastructure to match production and identified hydrogen and carbon dioxide projects as future opportunities.

Tony Bennett, president and CEO of the Texas Association of Manufacturers, urged the committee to maintain a regulatory environment that balances environmental protection with predictable permitting and workforce development. Bennett said he supports federal actions to ease export permitting for liquefied natural gas (LNG) and called for renewal of a state research-and-development franchise tax credit expiring in 2026 to keep Texas competitive for advanced manufacturing projects.

Carr Ingham, president of the Texas Alliance of Energy Producers, emphasized the diversity of Texas producers—large majors and many small independents—and stressed that the upstream sector’s record output relies on efficiencies that leave many wells low-volume. Ingham warned regulators that some federal or state rules that impose costs could put tens of thousands of low-volume wells at risk. He and other witnesses urged quick development of pipeline and export capacity so associated natural gas can reach markets rather than depress local prices.

Workforce and oilfield theft Panelists told senators workforce shortages—ranging from welders to drivers and skilled trades—remain a constraining factor and recommended continued support for career-and-technical education, apprenticeships and job-placement services at community colleges. On oilfield theft, witnesses said theft and organized criminal activity are rising in remote production areas and that law enforcement resources are limited; they suggested models where industry funds targeted enforcement efforts and urged revisiting penalties and dedicated investigative resources.

Market and export outlook Industry witnesses welcomed the recent federal action to resume processing LNG export permits. They said more export capacity and pipeline connections from West Texas to the Gulf Coast could stabilize local prices (Waha hub prices recently shifted from negative toward positive) and bring additional private investment for carbon-capture and other projects.

No formal committee votes were taken on industry proposals during the hearing; senators indicated they would consider bills on produced-water authority, well plugging, workforce programs and enforcement against oilfield theft as the session proceeds.