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Austin, Texas – As drilling activity in Texas continues to increase, so are job levels for the state’s oil and natural gas industry. Citing the latest Current Employment Statistics (CES) report from the U.S. Bureau of Labor Statistics (BLS), the Texas Independent Producers and Royalty Owners Association (TIPRO) today highlighted new employment figures showing significant growth in monthly employment for the Texas upstream sector. According to TIPRO’s analysis, direct Texas upstream employment for July 2022 totaled 202,800, an increase of 6,800 jobs from June employment numbers. Texas upstream employment in July 2022 represented an increase of 35,400 positions compared to July 2021, including an increase of 8,600 in oil and natural gas extraction and 26,800 jobs in the services sector.

The Houston metropolitan area, the largest region in the state for industry employment, showed an increase of 2,000 upstream jobs last month compared to June, for a total of 68,800 direct positions, according to TIPRO. Houston metro upstream employment in July 2022 represented an increase of 11,000 jobs compared to July 2021, including an increase of 5,200 in oil and natural gas extraction and 5,800 jobs in the services sector.

TIPRO once again noted strong job posting data for upstream, midstream and downstream sectors for the month of July. According to the association, there were 13,614 active unique jobs postings for the Texas oil and natural gas industry in July, an increase of nearly 10 percent compared to June numbers.

Among the 14 specific industry sectors TIPRO uses to define the Texas oil and natural gas industry, Support Activities for Oil and Gas Operations once again 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), indicating a continued emphasis on increasing exploration and production activities in the state. The leading three cities by total unique oil and natural gas job postings were Houston (4,864), Midland (1,383) and Odessa (639), said TIPRO.

The top three companies ranked by unique job postings in July were Baker Hughes with 1,152 positions, KBR (486) and Weatherford International (451), according to TIPRO’s analysis. Of the top ten companies listed by unique job postings last month, five companies were in the services sector, followed by three companies in oil and natural gas extraction and two midstream companies.

Top posted industry occupations for July included 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). When analyzing education requirements for unique industry job postings last month, TIPRO reports that 43 percent required a bachelor’s degree, 34 percent a high school diploma or GED, and 26 percent had no education requirement listed as part of the criteria.

TIPRO also highlights new data released from the Texas comptroller’s office showing record levels of tax contributions paid by Texas oil and natural gas producers. In July, $694 million in oil production taxes were paid, 84 percent higher than July 2021. Texas energy producers also paid $532 million in natural gas production taxes for the same month, up 185 percent from last July. Both figures represented the highest monthly collections on record, continuing a trend of producers paying record amounts in taxes to the state. Oil and natural gas severance taxes support all aspects of the Texas economy, including roads and infrastructure investments, water conservation projects, schools and education, first responders and other essential public services.

Additionally, TIPRO reports that oil and gas output in Texas is on track to reach new production records in September. Experts with the U.S. Energy Information Administration (EIA) forecast that oil production in the Permian Basin, the nation’s most prolific shale oil basin, will rise 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 also expected to increase 26,000 bpd in August, reaching 1.230 million bpd. Further, natural gas production will rise in the Permian to record highs of 20.58 billion cubic feet per day (bcfd), according to the EIA, and in the Eagle Ford, natural gas production will grow to 7.1 bcfd.

“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,” said Ed Longanecker, president of TIPRO. “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. TIPRO remains committed to advancing energy policies at all levels of government to strengthen our nation’s energy security and economic opportunities,” concluded Longanecker.

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