Top Houston Energy Firms See Major Oil and Gas Tax Bills in 2025

Several of Houston's largest energy producers are among the top contributors to Texas’ oil and gas production tax revenue for 2025, according to recently released state data. The figures highlight Houston’s continued dominance in the energy sector and the critical role its companies play in funding state operations.

Texas production taxes, which apply to oil and natural gas extraction, remain one of the state’s most important revenue sources. In 2025, several Houston-based firms ranked near the top statewide for total payments. The amounts reflect strong market conditions, high production volumes, and ongoing investment in upstream activity.

The Business Journals reported that some Houston companies paid hundreds of millions of dollars in production taxes, underscoring how closely Texas’ fiscal health remains tied to the energy industry.

Why It Matters for Houston

These tax payments fuel essential Texas services such as public schools, infrastructure, and emergency response. Because many of the state’s largest oil and gas producers operate from Houston, the city’s economic performance often shapes statewide revenue trends.

Large tax contributions also signal steady upstream investment, a positive indicator for Houston jobs, corporate activity, and long-term economic stability. As Texas continues to attract energy-sector development, Houston benefits from both direct industry growth and the broader economic ripple effects.

What’s Next

Analysts expect oil and gas production to remain strong through the remainder of 2025, although future tax payments could fluctuate with commodity prices. Houston companies continue to explore efficiency improvements, new drilling technologies, and strategic expansion plans that may influence next year's tax landscape.

This article is a summary of reporting by The Business Journals. Read the full story here.