The Railroad Commission of Texas, the state's energy agency, said crude oil production in July averaged 2.15 million barrels per day, up from the 1.68 million bpd reported in July 2013.
The rise in production reflects a 31 percent increase in the number of drilling permits issued year-on-year.
For natural gas, the commission said production of 602 billion cubic feet in June is an 8 percent increase year-on-year.
Texas is the No. 1 oil producer in the nation. Combined with North Dakota, the No. 2 producer, they produced 120 million barrels of oil in April, the last full month for which data are available from the U.S. Energy Department.
Texas is host to the Eagle Ford shale reserve area, one of the most prolific shale basins in the United States.