The Texas economy today relies largely on information technology, oil and natural gas, aerospace, defense, biomedical research, agriculture, and manufacturing. Agriculture is the second largest industry in Texas. About 12% of the 26 million people living in Texas are rural dwellers, and approximately one in seven people in Texas rely on agriculture for their livelihood. It is estimated that petroleum deposits in the state are about eight billion barrels accounting for about 1/3rd of all the known petroleum supply in the US. The proven oil reserves in the state are approximately 4.6 billion barrels.
Tourism is also important for the state’s economy; most visitors who come to Texas stay overnight within its borders.
Major Industries
From energy to technology, Texas is home to several major industries that drive job creation and innovation.
- Energy: Texas leads the nation in oil and gas production, with major oil fields such as the Permian Basin and Eagle Ford Shale.
- Agriculture: Texas is a major producer of cotton, cattle, dairy products, and poultry.
Home to 22 Fortune 500 and 45 Fortune 1000 companies, a diverse group of companies like American Airlines and Texas Instruments are spread throughout the Dallas Region. Tesla, Oracle, and Hewlett Packard are just some of the big names that are moving to Texas.
Key Economic Data
Oil and gas extraction is the largest industry, accounting for 6.1% of the $1.8 trillion total GDP. The annual output is $111.6 billion, a 24.1% increase over five years. Employment in this sector is 76,000, which is 0.6% of all jobs, with an average compensation of $207,903 compared to the $59,794 average across all occupations.
Manufacturing has proven to be one of the top industries in Texas, thanks to the state’s convenient location and great transportation system. The variety of manufacturing companies allows Texans to enjoy homemade goods. The film and entertainment industry is also significant.
Local governments rely heavily on property taxes as their main tax revenue source. In the Dallas area, the top industries are technology, financial services, and defense. In Fort Worth, the major industries are oil and gas, manufacturing, aviation, and aerospace. Unemployment is slightly below the national average.
Technology is an important productive economic element with the potential to influence growth in service industries. Major technology companies such as Dell, AT&T, and Texas Instruments are headquartered in Texas. Fortune 500 companies like American Airlines, Tenet Healthcare, and Schlumberger are also based in Texas.