(The Center Square) – Jobs in the upstream oil and natural gas sector fell by 1,400 `in July over the month.

June’s job losses were also revised to 1,500, which was “less severe than the previously estimated 2,700,” the Texas Oil & Gas Workers Association said. “Despite declines over the past two months, year-to-date growth remains positive at 4,300 upstream jobs.”

The upstream sector involves oil and natural gas extraction and some types of mining. It excludes other industry sectors like refining, petrochemicals, fuels wholesaling, oilfield equipment manufacturing, pipelines, and gas utilities that support hundreds of thousands of additional jobs statewide. Industry jobs pay among the highest wages in Texas, with an average salary of $128,000 in 2024.

“Forecasts for lower prices can slow industry growth plans,” TXOGA President Todd Staples said. “With approximately 8 bcf/d of new LNG export capacity under development in Texas and multiple infrastructure projects announced, we are optimistic stable global market conditions will strengthen short-term demand and reinforce our energy workforce.”

Since the COVID-era low point of September 2020, the upstream sector added 51,200 jobs in Texas, a 33.7% increase, averaging 875 jobs added a month. From September 2020 to May 2025, months of upstream job increases outnumbered months of decreases by 40 to 15, TXOGA notes, The Center Square reported.

According to a Texas Independent Producers and Royalty Owners Association (TIPRO) analysis, direct Texas upstream employment last month totaled 205,200. The total represented an increase of 200 jobs in oil and gas extraction and a decrease of 1,600 jobs in the services sector.

“Fluctuations in monthly employment are normal and subject to revisions,” TIPRO says, adding that “demand for talent in the Texas upstream sector remains high.”

“We are acutely aware of the challenges facing some companies in the upstream sector,” TIPRO president Ed Longanecker said. “Texas oil and gas producers have gained significant market, regulatory and fiscal advantages relative to the pre-pandemic era, driven largely by the One Big Beautiful Bill Act and EPA’s deregulatory actions that will reduce barriers and costs for operators, but those benefits will take time to fully realize or feel.

“While uncertainties remain relative to geopolitical conflicts, OPEC output and tariffs, this new era of American energy dominance will unquestionably be fueled by domestic oil and natural gas, with Texas as the undisputed leader.” 

TIPRO’s new workforce data indicated strong job postings for the Texas oil and natural gas industry, with 8,853 active unique jobs postings for the industry last month, up from 8,457 in June. Texas had the most unique jobs posted for the industry, followed by those in Pennsylvania, California, Ohio and Illinois, it notes, totaling 57,472 unique job postings nationwide last month. This is up by nearly 5,000 new jobs postings over the month. 

TIPRO posted workforce trends for last month, including unique job postings by state and industry job postings in Texas.

TIPRO also points to the industry’s strong tax contributions last month that fund public schools and universities, roads, first responders and other essential services. Last month, Texas energy producers paid $433 million in oil production taxes, according to the Texas comptroller’s office. Last month, producers also paid $178 million in natural gas production taxes, up 8% from last July. 

Texas still leads the U.S. in production.

According to recent data published by the U.S. Energy Information Administration, crude oil production in Texas grew to 5.752 million barrels per day (bpd) in May, up from 5.751 million bpd pumped in April.

Natural gas production in Texas last month also held steady at 36.75 billion cubic feet per day (bcf/d), near record levels of output, according to the data.