(The Center Square) – In July, there were more than 200,000 people employed in the Texas upstream oil and natural gas industry for the first time since March 2020.
The industry’s job gains in July saw an additional 6,800 upstream oil and natural gas jobs, the second highest monthly increase in recorded history. The Texas Workforce Commission has been publishing job data since 1990.
At 202,800 upstream jobs, July 2022 jobs were up by 35,400, or 21.1%, from July 2021.
The previous month’s record-breaking job gains was revised upward to 7,200 new jobs, which broke the previous record of 5,600 jobs added in June 2011.
“Job growth in the Texas oil and natural gas industry is good news because these high-quality jobs support hundreds of thousands of Texas families and contribute directly to our nation’s energy security and our state’s economic might,” Todd Staples, president of the Texas Oil & Gas Association, said.
Since the low point in employment in September 2020, the Texas oil and natural gas industry has added 45,800 upstream jobs, averaging an additional 2,082 jobs per month.
The upstream sector involves oil and natural gas extraction and some small types of mining. It excludes the industries of refining, petrochemicals, fuels wholesaling, oilfield equipment manufacturing, pipelines, and gas utilities, which support hundreds of thousands of additional Texas jobs.
“At a time when the country and world depended on fossil fuel production, Texas stepped up and met the challenge on an unprecedented level to fight the Biden administration’s multiple attempts to hinder production,” Midland-based Oil and Gas Workers Association board member Richard Welch told The Center Square. “Texas found a way to get it done.
“Texas oil and gas workers are some of the hardest working people in our state whose tireless efforts keep our lights on and gas in our vehicles,” he added. “Without Texas oil and gas workers, the U.S. wouldn’t be leading the world in oil and gas production.”
As drilling activity in Texas continues to increase, there was an increase of 10% of available jobs in July compared to June, the Texas Independent Producers and Royalty Owners Association (TIPRO) said, totaling 13,614 unique jobs.
Oil and natural gas output in Texas is also on track to reach new production records in September, TIPRO noted, meaning job growth will continue.
The U.S. Energy Information Administration forecast that oil production in the Permian Basin, the most prolific shale oil basin in the U.S., will increase by 79,000 barrels per day (bpd) to a record 5.408 million bpd in September. Oil production in the Eagle Ford Shale in South Texas is expected to increase 26,000 bpd in August, reaching 1.230 million bpd. Natural gas production also is expected to increase in the Permian to record highs of 20.58 billion cubic feet per day (bcfd) and to 7.1 bcfd in the Eagle Ford.
“The growth in July upstream employment once again illustrates a high demand for available talent in-line with increasing levels of exploration and production activities in the state to meet growing energy needs here and abroad,” TIPRO President Ed Longanecker said. “Despite this growth, Texas operators face numerous challenges, including workforce shortages, supply chain disruptions and growing concerns over policy decisions coming from Washington, D.C.”
In response, TIPRO plans to “advance energy policies at all levels of government to strengthen our nation’s energy security and economic opportunities,” he added.
For those looking for work in the industry, TIPRO notes, among 14 specific industry sectors, Support Activities for Oil and Gas Operations ranked the highest in July for unique job listings with 3,571 postings, followed by Oil and Gas Field Machinery and Equipment Manufacturing (1,674 postings), and Crude Petroleum Extraction (1,624 postings).
The types of jobs available and qualifications necessary also vary with the greatest number of available jobs being for heavy tractor-trailer truck drivers (752), managers (351) and software developers (340). Top qualifications for unique job postings included Commercial Driver’s License (870), Master of Business Administration (250) and Bachelor of Science in Business (210). Of the education requirements for available jobs, 43% required a bachelor’s degree, 34% a high school diploma or GED, and 26% had no education requirements.
The top three cities with the greatest number of unique oil and natural gas job jobs in July were in Houston (4,864), Midland (1,383) and Odessa (639). The top three companies with the greatest number of available unique jobs in July were Baker Hughes (1,152 jobs), KBR (486) and Weatherford International (451).