New oil and natural gas employment and production data

Texas frontier business

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Texas Association of Independent Producers and Proprietors (TIPRO)

AUSTIN, Texas – Citing the latest Current Employment Statistics (CES) report from the US Bureau of Labor Statistics (BLS), the Texas Association of Independent Producers and Royalty Owners (TIPRO) today highlighted new employment numbers that show a decline in upstream employment for the month of May 2024. According to TIPRO’s analysis, direct upstream employment in Texas for May totaled 191,400, representing a decline of 2,000 jobs from April’s employment numbers . Oil and gas extraction jobs in Texas rose by 400 last month, while support activities fell by 2,400.

Although overall employment for the state’s upstream sector was down in May, new TIPRO labor force data again showed strong job postings for Texas’ oil and natural gas industry. According to the association, last month there were 11,015 unique active postings for the Texas oil and natural gas industry, including 4,170 new job postings added during the month by companies. In comparison, the state of California had 3,833 unique job postings last month, followed by Florida (1,973), New York (1,672), Louisiana (1,435) and Pennsylvania (1,335). TIPRO reported a total of 52,329 unique job postings nationwide last month within the oil and natural gas sector.

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Among the 19 specific industry sectors that TIPRO uses to define the Texas oil and natural gas industry, convenience store gas stations led the way for unique job listings in May with 2,529 postings, followed by Operations Support Activities of Oil and Gas (2,459) and Crude Oil Extraction (934). The top three cities by total unique oil and natural gas job postings were Houston (3,398), Midland (763) and Odessa (476), TIPRO said.

The top three companies ranked by unique job postings in May were Cefco (1,224), Baker Hughes (604) and Love’s (411), according to the association. Of the top ten companies listed by unique job postings last month, five companies were in the service sector, followed by two in the convenience store gas station category, two mid-sized companies and one upstream company. The top industry occupations posted for May included first-line supervisors of retail sales workers (629), heavy tractor truck drivers (367) and retail salespersons (349). The top posted job titles for May included store managers (240), customer service representatives (227) and maintenance people (143).

Top qualifications for unique job postings included valid driver’s license (1,726), CDL Class A license (239), and commercial driver’s license (CDL) (206). TIPRO reports that 40 percent of unique job postings had no education requirements listed, 34 percent required a bachelor’s degree, and 28 percent required a high school diploma or GED. There were 2,065 posted salary observations (19 percent of 11,015 matching posts) with an average salary of $62,300. The highest percentage of advertised salaries (31 percent) were in the $90,000 to $500,000 range.

Additional data on TIPRO workforce trends:

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TIPRO also highlights recent data released by the Texas comptroller’s office showing significant tax contributions made by the Texas oil and natural gas industry during the month of May. Texas energy producers last month paid $556 million in oil production taxes, up from the previous month and 12 percent higher than the amounts paid a year earlier in May 2023. Producers in May also contributed 180 million dollars in additional revenue from natural gas production taxes. Revenues collected from oil and natural gas severance taxes are used to help support and pay for important public services throughout the Lone Star State, including road and infrastructure investments, water conservation projects, schools and education, first responders and more.

In addition, TIPRO notes new forecasts for oil and natural gas production in the Permian Basin and Eagle Ford Shale. New data recently released by the US Energy Information Administration (EIA) projects Permian Basin crude oil production to average about 6.3 million barrels per day (b/d) in 2024, an increase of nearly 8 percent by 2023, then rising to 6.8 million b/d in 2025. The Permian Basin, located primarily in Texas, accounts for nearly half of U.S. crude oil production, and in its June Short Term Energy Outlook (STEO), the EIA said higher output in the Permian and other drilling regions will boost U.S. oil output to consecutive record highs in 2024 and 2025. Figures released June 11^th from the EIA also shows that oil production in the Eagle Ford will be close to 1.08 million barrels per day this year, then increase further in 2025. Meanwhile, market conditions and lower commodity prices will continue to affect in natural gas drilling and production, although natural gas production is projected to increase in the Permian and Eagle Ford regions this year, the EIA said, while falling in other major producing regions.

Also this week, Texans for Natural Gas (TNG), an educational campaign managed by TIPRO, released a new report titled “Texas Grid Security: Reliability-Critical Natural Gas as Electricity Demand Increases.” The report highlights the vital role natural gas will play in supporting the state’s growing need for reliable and affordable energy.

“In addition to the tremendous economic contributions provided by our industry, the role of natural gas in meeting the growing demand for electricity in our state has never been more critical,” said Ed Longanecker, president of TIPRO. “Natural gas will continue to play a dominant role in providing a reliable baseload supply for decades to come. Further investment in domestic production, infrastructure and natural gas power generation will be essential to meet this demand,” Longanecker added.

To read the full report, Click here.

Source of information: Texas Association of Independent Producers and Proprietors (TIPRO)

About TIPRO

The Texas Association of Independent Producers and Owners (TIPRO) is a trade association representing the interests of nearly 3,000 independent oil and natural gas producers and royalty owners throughout Texas. As one of the nation’s largest associations representing independent producers and royalty owners, members include small businesses, larger publicly traded independent producers and mineral owners, estates and trusts.

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