Olson, 47, is a rector at the Holy Trinity Seminary of Irving, Texas, and his appointment by Pope Francis as the diocese's fourth bishop marks the first time a priest within the diocese was named bishop, the Fort Worth Star-Telegram reported.
The announcement was made Tuesday by Archbishop Carlo Maria Vigano, the Apostolic Nuncio to the United States.
Olson will lead an estimated 710,000 Catholics in 90 parishes in North Texas, and succeeds Bishop Kevin Vann, who was appointed bishop of Orange, Calif., in 2012.
Moore to attend retreat in to avoid Kutcher's wedding
Lytro unveils camera that can focus a photo after shooting it