(The Center Square) – Gov. Greg Abbott signed pro-growth bills into law on Thursday to support the oil and natural gas industry and promote economic growth in west Texas.

“Today is a defining moment for the Permian Basin, the future of this region, and the future of Texas,” Abbott said. “We are bringing the full weight of the law to crack down on oil theft in the Permian Basin to protect the critical role energy development plays in fueling our economy.”

The bills were filed by Republicans state Sen. Kevin Sparks of Midland, and state Reps. Drew Darby of San Angelo, Tom Craddick of Midland and Brooks Landgraf of Odessa.

Abbott signed SB 494, SB 1806 and HB 48 to provide additional tools to law enforcement to address oil field theft in the Permian Basin.

SB 494 establishes a petroleum product theft task force “to study theft of petroleum products and analyze the impacts of that theft and make recommendations, including related outreach and prevention programs and training for law enforcement officers,” according to the bill analysis.

SB 1806 provides Texas Department of Public Safety troopers with clear authority to inspect any cargo tank used or suspected of being used to transport a petroleum product on a public road or railroad in order to investigate suspected oil and gas theft; expands the definition of oil field theft, enhances felony penalties and creates a new offense of theft of oil and gas equipment. The bill also amends the Water Code related to disposing of oil and gas waste and state permitting.

HB 48 creates an organized oilfield theft prevention unit within DPS region 4, which includes 36 counties in west Texas.

Although oil field theft has gone on for years, it escalated under the Biden administration’s border crisis that ushered in increased cartel and illegal border crosser crime, including crude oil theft and smuggling, The Center Square reported.

Theft is occurring in the heart of oil production in Texas, in the Permian Basin. The Permian Basin accounts for nearly 40% of all oil production and nearly 15% of natural gas production in the U.S., according to the Federal Reserve Bank of Dallas. It spans more than 86,000 square miles – roughly 10 times the size of New Jersey. Roughly 250 miles wide and 300 miles long, it has more than 7,000 fields.

Prior to the border crisis, an FBI-led Oilfield Theft Task Force based in Midland estimated that in 2016, losses from theft of tools, pipes and valves in the Permian Basin region averaged between $200,000 and $300,000 a month. That excludes an Energy Security Council estimate that estimated between 1% to 3% of product was stolen in Texas at the time. Based on production of more than one billion barrels of oil and condensate in Texas in 2016, the ESC estimated the industry saw an annual loss of 10 million to 30 million barrels, or roughly $450 million to nearly $1.5 billion in revenue losses, The Center Square reported.

Since then, losses have escalated as cartel operatives, including human and drug smugglers, steal vehicles and product to facilitate their multi-billion-dollar illicit business, The Center Square reported.

At the bill signing, Abbott also highlighted $123 million allocated by the state legislature in the state budget dedicated to an economic development project in Midland-Odessa. The funds will be distributed by the Texas Facilities Commission to support Beacon Healthcare in extending healthcare, research, residential and retails spaces in the region.

He also signed SB 529 into law, which amends the tax code to allow the city of Midland to divert certain collected tax revenue for economic development projects. Midland is the seventh fastest-growing metropolitan area in the U.S.

In fiscal 2024, the Texas oil and natural gas industry paid a record $27.3 billion in state and local taxes and state royalties, The Center Square reported.

According to data published by the Texas Oil & Gas Association, the top counties receiving the most oil and natural gas property taxes are in West Texas in the Permian Basin. In these and many districts, the industry represents the majority of the tax base.