The Texas economy of the twenty-first century centers on

The Texas economy of the twenty-first century is centered on a diverse range of industries including energy (particularly oil and natural gas), technology, agriculture, commerce, and manufacturing. One of the most significant sectors is the energy industry, with Texas being a leading oil and natural gas producer in the United States. Moreover, the technology sector has been booming with areas like Austin becoming tech hubs, sometimes referred to as "Silicon Hills". The state is also known for its large agricultural output, and it remains a major player in cattle ranching, cotton farming, and forestry. Commerce thrives in Texas due to its large population and central location, with cities like Dallas and Houston being major business and financial centers. In addition, manufacturing is varied and includes aerospace, biomedical sciences, and industrial equipment.

Texas' economy is a prime example of economic diversification and resilience. Initially, Texas was predominantly known for its oil industry, which still plays a significant role. The discovery of vast oil reserves in the early 20th century, such as at Spindletop, laid the foundation for its traditional economic strength. However, over the years, Texas has expanded its economic base to mitigate the risk associated with the boom-and-bust cycles of the energy sector.

The technology sector has grown rapidly with companies in software, hardware, and semiconductors setting up major operations in Texas. The state's business-friendly policies, absence of state income tax, and lower cost of living compared to coastal tech hubs make it an attractive destination for businesses and workers.

Agriculture in Texas benefits from the state's large size and varied climates, allowing for a wide range of products to be cultivated. The state leads in livestock and livestock products, primarily beef cattle.

Commerce is facilitated by the state's infrastructure which includes several major airports, extensive highways, and shipping ports that accommodate a significant amount of both national and international trade.

Manufacturing has grown to include advanced technology in aerospace (partly due to the presence of NASA in Houston), computer equipment, industrial machines, and medical equipment.

The Texas economy, due to its vast natural resources and human capital, is often compared to that of entire countries. The state's Gross Domestic Product (GDP) ranks highly not just in the U.S., but also when compared to the largest economies in the world. This makes Texas a significant contributor to the overall economy of the United States.