Texas has large deposits of oil and gas beneath its Permian Basin.

The Permian Basin, located primarily in West Texas and extending into southeastern New Mexico, is one of the most prolific oil and gas-producing regions in the U.S. The basin contains vast reserves of oil and natural gas, making Texas a key player in U.S. energy production. Advances in hydraulic fracturing (fracking) and horizontal drilling have unlocked previously inaccessible deposits, leading to a boom in oil and gas production. As a result, the Permian Basin has become a critical source of energy, contributing significantly to the U.S.'s domestic oil and natural gas output and shaping global energy markets.