Texas Oil & Gas Association (TXOGA)
TXOGA is the only industry association that represents members from all parts of the oil and natural gas industry in Texas, including small independent companies and major producers. TXOGA’s mission is to promote a robust oil and natural gas industry and to advocate for sound, science-based policies and free-market principles.
Membership of board/executive committee: Shell is a member of the board of directors.
- 2022 assessment outcome: Some misalignment
- 2021 assessment outcome: Some misalignment
Shell benefits from its membership of TXOGA, particularly in relation to its role advising the Texas state government on development of legislation and regulation to better enable growth in business opportunities in carbon capture, utilisation and storage (CCUS) and hydrogen. TXOGA also supports the reduction of methane emissions and flaring across the oil and gas industry in Texas, including through their work with the oil and gas industry to establish and staff the Texas Methane & Flaring Coalition.
We have found TXOGA to have some misalignment with our climate and energy transition-related policy positions. TXOGA has not stated support for the goal of the Paris Agreement or net-zero emissions by 2050. TXOGA has advised us that as a state-level organisation it is not organised or funded to routinely address such issues, which it considers to be federal, not state-level, issues. We also note that TXOGA has not stated positions on a number of related climate and energy transition topics on which we would expect it to state positions.
We have conducted a more detailed review of our membership of TXOGA, and have decided to remain in the association at the current time. We believe that its positions are changing, and that we can have more impact within the association than outside of it. We also recognise the value that TXOGA brings to us in relation to its advocacy on CCUS and hydrogen. Supportive CCUS and hydrogen regulations are crucial enablers for our business strategy in the region to develop industrial decarbonisation hubs. TXOGA has been advancing CCUS with the Texas state government during 2022, resulting in the association authoring a draft CCUS bill for the 2023 Texas State Legislative Session. TXOGA has also provided input into additional bills being drafted in support of hydrogen production projects within the state and associated pipelines for distribution of hydrogen across the state once projects become operational.
We will keep our membership of TXOGA under review during the next 12 months. We will use this period to continue to engage TXOGA, including through our position on TXOGA’s board and our membership of its work groups on carbon management and climate policy.
We will urge TXOGA to update its climate statement to:
- State support for net-zero emissions by 2050 and to publicly advocate for reducing carbon emissions.
We will encourage TXOGA to publish information on its website about:
- Its advocacy on CCUS legislation and regulation.
- Its advocacy in support of decarbonised hydrogen.
- Its support of policies that encourage public and private investment to protect and expand natural ecosystems that store carbon, including policies to ensure that nature-based solutions complement, and do not displace, efforts to avoid and reduce greenhouse gas emissions.
- Its support for improving energy efficiency through standards and regulatory instruments covering key sectors of the economy.
We also encourage TXOGA to:
- Support policies that recognise natural gas and other low-carbon gases as partners for renewable sources.
- Support ending routine flaring by 2030 or sooner. TXOGA, through the Texas Methane & Flaring Coalition, already supports ending routine flaring by 2030, but we encourage efforts to bring that date forward.
- Support accelerating electrification using renewable and low-carbon power sources, and their connection to Texas transmission lines.
- Advocate constructively in support of a carbon price if such policy discussions arise at state level.
- State a position in support of policies to decarbonise road transport.
We will continue to track alignment between TXOGA’s climate and energy transition-related positions and our own and will be transparent about where we find differences. We will continue to engage the association in areas where we have different views. We will provide an update in our next report.
Click on the sections below to read more.
Paris Agreement and net-zero emissions
- TXOGA has not stated a position on the temperature goal of the Paris Agreement or net-zero emissions.
- TXOGA’s climate statement states that it “seeks to be part of the solution to climate change” and that it supports “public policy that recognizes oil and natural gas are indispensable, facilitates meaningful greenhouse gas emissions reductions, and balances economic, environmental, energy and national security needs while promoting innovation”.
- TXOGA has not stated a position on carbon pricing; the State of Texas is not currently considering a carbon price.
- TXOGA has not stated a position on improving energy efficiency through standards and regulation. However, it has launched an innovation and technology showcase called ‘Energy Elevated’ to highlight Texas oil and gas industry innovation and technology, including carbon initiatives.
- TXOGA has not publicly stated a position on decarbonised hydrogen.
Carbon capture and storage
- TXOGA has stated that “oil and natural gas companies are also pioneering breakthrough technologies to capture, store and reuse carbon dioxide”, adding that “because of these investments, smart policies and science-based regulations, America’s environment is cleaner than ever before”.
- In November 2022, TXOGA's president commented on the upcoming Texas State Legislative Session, stating that “we look forward to policy proposals that encourage continued investment in innovation and energy development, maintain tax fairness, ensure Texas is competitive for jobs with other states and encourage carbon dioxide storage.”
- In 2022, TXOGA sponsored and co-wrote the draft CCUS bill for the 2023 Texas Legislative Session.
Environmental, social and governance (ESG) standards and benchmarks, sustainable finance taxonomies
- TXOGA has stated that the “increased use of clean natural gas in generating the nation’s electricity, in many cases replacing coal-fired generation, is one of the leading reasons the air Americans breathe is cleaner today than it has been since the 1990’s.”
Electrification with renewable or low-carbon power
Gases and methane
- TXOGA has stated support for the role of natural gas in power but has not stated it as a partner for renewables.
- TXOGA has stated support for reducing methane emissions. It is a founding member of the Texas Methane and Flaring Coalition, which promotes practices to reduce flaring and methane emissions.
- Through the Texas Methane and Flaring Coalition, TXOGA supports the goal of ending routine flaring by 2030.
Road transport: Passenger cars and vans
- TXOGA has not stated a position on the decarbonisation of the road transport sector. TXOGA has supported the Texas Emissions Reduction Plan (TERP), which includes grants to purchase new vehicles, including electric cars.  It is noted that there are various bills in the current Texas legislative session that prohibit restriction on internal combustion engine vehicles.
Road transport: Heavy-duty vehicles
Heavy industry decarbonisation
No positionReturn to list of associations
 https://capitol.texas.gov/BillLookup/History.aspx?LegSess=88R&Bill=HB4484 and https://capitol.texas.gov/BillLookup/history.aspx?LegSess=88R&Bill=SB2107
 Example of a bill that prohibits restriction on internal combustion engines: https://capitol.texas.gov/Search/DocViewer.aspx?ID=88RHJR001741B&QueryText=%22HJR+174%22&DocType=B