State of Texas Makes $20M in One Day to Fund Education

Everything is bigger in Texas, including the amount the state just raised to fund education.

“Texas’ first-ever online sale of oil and gas leases quickly became the biggest state lease sale in the nation to be held on EnergyNet, earning public schools nearly $20 million Tuesday morning. ”

“When private oil and gas companies develop minerals managed by the GLO, it creates high-paying jobs and earns hundreds of millions of dollars a year for public education in Texas,” George P. Bush, Texas’ land commissioner, said. “With today’s online energy lease sale I’ve delivered on my promise to make the bidding process more accessible and more efficient, while earning even more money for Texas schools.”

Previously, Texas used a dated process to bid on land that involved private sealed bidding. But this week when the state allowed companies to bid competitively against one another for the right to develop oil and gas reserves on state land, the state brought in seven times the amount than the last lease sale in January.  In addition to raising money, the Permanent School Fund will also earn 20-25% royalties on the sales.

“Even in a soft oil and gas market, we made more money today by opening up the bidding process to more producers and investors,” Bush said after the sale. “The 21^st Century economy is online. We sell on eBay, buy from Amazon and catch a ride through Uber. Putting these energy lease sales online just makes sense. Texans demand a more efficient, effective government and we are delivering it at the General Land Office.”