Direct upstream employment in Texas totaled 205,200 jobs in July, a decline of 1,400 positions from the previous month, according to an analysis by the Texas Independent Producers and Royalty Owners Association (TIPRO).
The decrease represents the addition of 200 jobs in oil and gas extraction, but a decrease of 1,600 jobs in the services sector, according to TIPRO’s review of the most recent Current Employment Statistics (CES) report from the U.S. Bureau of Labor Statistics (BLS).
Unique job postings in the state’s active unique job postings for the upstream industry in July totaled 8,853, an increase of 396 from the June figure of 8,457. There were 3,840 new postings, compared to 3,533 in June, according to TIPRO.
One caveat worth noting: CES reporting can fluctuate and is subject to revisions. It’s based on a sample survey.
“Once BLS finalizes the data, we have a more accurate view of total employment and trends,” TIPRO President Ed Longanecker told Hart Energy.
The Texas Oil and Gas Association (TXOGA) said in late July that as of June, employment numbers have dropped five out of six months this year as efficiencies enabled E&Ps to grow production with fewer rigs and workers.
Oil and gas jobs have generally increased since the depths of the 2020 pandemic, but Texas Workforce Commission (TWC) data cited by TXOGA suggests the pattern is changing.
M&A, layoffs
Ed Longanecker, president, TIPRO. (Source: Texas Independent Producers and Royalty Owners Association)
A massive consolidation wave that has swept up both upstream and midstream companies could “certainly be a factor” in the decline figures, Longanecker said.
In May, Chevron reported 200 layoffs in Midland, Texas, effective July 15. Last month, Chevron alerted the TWC that, with the closing of its $53 billion acquisition of Hess Corp., the supermajor would terminate another 575 jobs at the Hess office in Houston. This cut reduced the Hess workforce by more than one-third, according to the July 21 letter filed with the TWC under the Worker Adjustment and Retraining (WARN) Act.
The reduction “is a result of the strategic integration of Hess Corporation and Chevron Corporation to position our combined organizations for stronger long-term competitiveness,” according to the letter written by Julie Williams, general manager for state government affairs at Chevron.
This round of layoffs is scheduled to begin Sept. 26.
In February, Chevron said it would lay off up to 20% of its global workforce by the end of 2026.
In October, Marathon Oil advised TWC in its WARN notice that it is planning for “a mass layoff at the Houston Facility wherein at least 500 employees will experience an employment loss” during the 12 months following the close of its $22.5 billion merger with ConocoPhillips. That deal closed in November.
Nevertheless, production continues on an upward trajectory in Texas. Crude oil production in Texas totaled 5.762 MMbbl/d in May, an increase from the 5.751 MMbbl/d reported in April, according to data from the U.S. Energy Information Administration. And the agency shows that natural gas production in July remained steady at 36.75 Bcf/d month-over-month.
“We are acutely aware of the challenges facing some companies in the upstream sector,” 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.”