If you ask most folks in the know what’s the energy capital of the U.S., many will tell you Texas, as it’s known as the home of several major oil extractors, refiners and petrochemical-related companies.
As the Dallas Fed notes, if Texas were a country, its current oil production would rank fourth globally behind the U.S., Russia and Saudi Arabia and ahead of Mexico and Canada – to say nothing of its fast-growing renewable industry. Texas ranks No. 1 for wind power in the U.S., and wildcatters have moved into areas like solar energy to stake their claims. Though gas and oil aren’t the main economic drivers in Texas, as they once were before transformations in the economy back in the 80s, oil and gas still account for almost 10% of the state’s gross domestic product.
But with Russia’s war against Ukraine putting the squeeze on supply and gasoline prices pinching consumers on the home front, President Joe Biden is threatening to seek a windfall profits tax on major oil and gas companies unless they ramp up production to curb the price of gasoline at the pump. The timing of this announcement is important, as the Houston Chronicle notes: Coming ahead of the midterm elections, gasoline prices and wider inflation across the economy is a driving issue for the GOP.