TIPRO News Releases and Statements

Texas Oil & Natural Gas Production Rises as Employment Growth Stalls

According to the Texas Independent Producers & Royalty Owners Association (TIPRO), crude oil production in the state of Texas totaled an estimated 1.35 billion barrels through November of 2018, representing an increase of 209 million barrels of oil produced compared to the same timeframe in 2017, and a total of 1.5 billion barrels forecasted for the full year. Natural gas production increased slightly for a total of 7.5 trillion cubic feet of gas produced through November. TIPRO reports that most of the increased output and related activity came from West Texas with Permian Basin oil production surging last year.

“With lower crude oil prices and increasing service costs, many operators are understandably looking at scaling back spending to stay within cash flow until market conditions improve,” said Ed Longanecker, President of TIPRO. “Despite numerous operators cutting capex in 2019, Texas oil and gas production is expected to rise in the coming months as additional pipeline capacity comes online in the Permian Basin, OPEC production cuts take full effect, oversupply concerns ease, and progress is made with U.S. China negotiations,” added Longanecker.

While 2018 oil and natural gas production continued to rise, industry job growth stalled in November. More than 10,000 net new oil and natural gas jobs were added to the state’s economy through November of 2018 compared to 2017, for a total of 336,000 workers directly employed by the industry. Upstream sector jobs accounted for the majority of the employment growth last year with more favorable market conditions driving increased exploration and production activity, with a total of 78,000 oil and gas extraction jobs and 142,000 oil and gas support activities jobs in the state through November.

“Job growth in the Texas upstream sector was essentially flat in November compared to many months of consecutive growth. A slowdown in employment was expected due to the impact of takeaway capacity constraints in West Texas, lower crude oil prices, added expense to E&P projects from increasing service costs, as well as rising material costs resulting from steel and aluminum tariffs. Ongoing innovation and efficiencies being utilized in the industry, expanding pipeline capacity, and an expedited resolution to trade disputes will support increased energy production and job growth for the state of Texas,” added Longanecker.

Texas Upstream Oil & Natural Gas by the Numbers

Payrolled Texas Upstream Business Locations (2018)

8,871

Texas Upstream Jobs Multiplier

3

Total Texas Upstream Employment in 2018

220,000

 

U.S. Upstream Employment Trends

 

 

Region

2017 Jobs

2018 Jobs

Change

% Change

Texas

214,247

219,777

5,530

2.6%

Alaska

9,840

9,646

-194

-2.0%

California

14,426

14,641

215

1.5%

Colorado

22,199

23,084

885

4.0%

Illinois

1,799

1,804

5

0.3%

New Mexico

17,350

18,203

853

4.9%

North Dakota

16,091

16,969

878

5.5%

Ohio

6,587

6,884

297

4.5%

Oklahoma

47,006

48,811

1,805

3.8%

Pennsylvania

15,430

16,143

713

4.6%

 

Texas Upstream Occupations

Description

Employed in Texas Upstream Sector (2018)

% of Total Jobs in Texas Upstream Sector (2018)

Roustabouts, Oil and Gas

21,193

9.6%

Service Unit Operators, Oil, Gas, and Mining

19,065

8.7%

Heavy and Tractor-Trailer Truck Drivers

11,093

5.0%

Petroleum Engineers

10,393

4.7%

First-Line Supervisors of Construction Trades and Extraction Workers

10,379

4.7%

 

Texas Upstream Gender Breakdown

 

 

Gender

2018 Jobs

  2018 Percent

 

 

Males

176,413

80.3%

 

Females

43,364

19.7%

 

 

Texas Upstream Age Breakdown

 

Age

2018 Jobs

2018 Percent

 

 

14-18

362

0.2%

 

19-24

11,105

5.1%

 

25-34

61,182

27.8%

 

35-44

57,087

26.0%

 

45-54

44,286

20.2%

 

55-64

36,679

16.7%

 

65+

9,075

4.1%

 

 


Texas Upstream Industry Race/Ethnicity Breakdown

 

 

Race/Ethnicity

2018 Jobs

2018 Percent

 

 

White

129,881

59.1%

 

Hispanic or Latino

68,150

31.0%

 

Black or African American

11,396

5.2%

 

Asian

7,847

3.6%

 

Two or More Races

1,480

0.7%

 

American Indian or Alaska Native

852

0.4%

 

Native Hawaiian or Other Pacific Islander

171

0.1%

 

 

Top Texas Upstream Purchases (2018)

Purchases from

In-State Purchases (Texas)

Out of State Purchases (U.S.)

Total Purchases

Crude Petroleum Extraction

$3,515,144,685

$10,701,005

$3,525,845,691

Corporate, Subsidiary, and Regional Managing Offices

$1,530,529,469

$1,052,505,449

$2,583,034,918

Pipeline Transportation of Natural Gas

$1,236,379,741

$24,426,538

$1,260,806,279

Offices of Lawyers

$932,448,125

$173,375,983

$1,105,824,108

Natural Gas Extraction

$1,090,379,101

$2,646,760

$1,093,025,861

 

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