Texas Upstream Oil Employment Keeps Growing

Data released by the Texas Workforce Commission indicates that upstream oil and gas employment in Texas continues to grow, with the sector adding 3,100 jobs in December.

That’s what the Texas Oil & Gas Association (TXOGA) noted in a statement sent to Rigzone recently, adding that, in 2023, “upstream oil and gas saw significant increases in hiring with the job count growing by 15,300 jobs for the year”.

In the statement, TXOGA stated that, since the Covid-low point in September of 2020, months of increase in upstream oil and gas employment in Texas have outnumbered months of decrease by 33 to six. In that time, industry has added 54,700 Texas upstream jobs, an average growth of 1,403 jobs a month, TXOGA noted in the statement.

The organization highlighted that these jobs pay among the highest wages in Texas, “with employers in oil and natural gas paying an average salary of approximately $124,000 in 2023”.

“2023 was an incredibly solid year for upstream oil and gas job growth, despite global economic uncertainties that have held back strong price signals, and the year finished with a continued upward push on job expansion,” TXOGA President Todd Staples said in the statement.

“These oil and gas jobs, along with the associated activity in local communities that generates tremendous growth opportunities, benefit every part of Texas and continue to be the cornerstone of the Texas economy,” he added.

TXOGA included a chart in the statement showing Texas jobs in upstream oil and gas from January 2013 to December 2023, which showed a peak of 308,900 back in December 2014, followed by a dip to under 200,000 in 2016, a rise to near 250,000 in 2018, and a dip to near 150,000 in 2020 before a steady increase from that year to 211,700 in December 2023.

Sources for data in the chart comprise the Texas Workforce Commission, Current Employment Statistics, and non-seasonably adjusted data, according to TXOGA, which pointed out that Texas jobs in upstream oil and gas included in the chart comprise the oil and gas extraction and support activities for mining sectors. Downstream sectors are excluded, TXOG highlighted.

In a statement posted on its website last month, TXOGA noted that the Texas oil and natural gas industry had “yet again set new production records and milestones”, according to estimates in a newly released monthly energy economic analysis prepared by TXOGA Chief Economist Dean Foreman.

“In October and November, Texas achieved record-high crude oil production of 5.7 million barrels per day, alongside a new high in natural gas marketed production at 33.6 billion cubic feet per day in October,” the statement said, adding that November also saw record highs in natural gas liquids (NGL) production at 3.5 million barrels per day and in-state refinery NGL direct use at 3.2 million barrels per day.

“In addition, for natural gas flows in September, Texas produced 27.6 bcfpd of dry natural gas, supplemented by 5.1 bcfpd of interstate net inflows, and exported 18.1 bcfpd,” TXOGA highlighted in the statement.

“In the first three quarters of 2023, Texas exported oil, natural gas, and derived products worth $164 billion, according to the United States International Trade Commission,” it added.

In that statement, Staples said, “these new production records and milestones are continued evidence of strong demand for oil and natural gas and the Lone Star State’s commitment to producing these irreplaceable products to meet the growing energy needs of our state, nation, and the world”.

“Texas is both a national and global energy powerhouse, with oil and natural gas leading the way,” Staples added.

Foreman said in the statement that “Texas’ role in the energy landscape has become increasingly critical, achieving this feat with modest drilling activity, thanks to productivity gains”.

“As the state has set new records in oil and natural gas production, processing, and exports, these achievements not only underscore Texas’ competitive advantages in resources, business climate, and trade but also highlight its growing importance in the national and global energy discourse,” he added.

TXOGA describes itself as a statewide trade association representing every facet of the Texas oil and gas industry, including small independents and major producers. Collectively, the membership of TXOGA produces approximately 90 percent of Texas’ crude oil and natural gas, operates nearly 90 percent of the state’s refining capacity, and is responsible for the vast majority of the state’s pipelines, according to the organization’s website.

In fiscal year 2022, the Texas oil and natural gas industry supported 443,000 direct jobs and paid $24.7 billion in state and local taxes and state royalties, TXOGA’s site notes.

To contact the author, email andreas.exarheas@rigzone.com