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Austin, Texas – 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 continued growth in monthly employment for the Texas upstream sector and strong demand for available talent throughout the industry.  

According to TIPRO’s analysis, direct Texas upstream employment for November 2022 totaled 209,900, an increase of 2,600 jobs from October employment numbers, subject to revisions. Texas upstream employment in November 2022 represented the addition of 37,600 positions compared to November 2021, including an increase of 7,900 jobs in oil and natural gas extraction and 29,700 jobs in the services sector.

Based on the top three occupations by standard occupational classification, oil and gas roustabouts make up approximately 5 percent of the Texas oil and natural gas industry workforce, followed by first-line supervisors of construction trades and extraction workers (4 percent) and oil and gas service unit operators (4 percent). When calculating direct, indirect, and induced employment for the upstream sector, for every position in Crude Petroleum Extraction, five jobs are created in other industries, followed by Natural Gas Extraction (four jobs), Drilling Oil and Gas Wells (two jobs) and Support Activities for Oil and Gas Operations (two jobs).

TIPRO in its analysis once again noted strong job posting data for upstream, midstream and downstream industries for the month of November. According to the association, there were 11,111 active unique jobs postings for the Texas oil and natural gas industry in November, including 3,596 new job postings added in the month by companies. 

Among the 14 specific industry sectors TIPRO uses to define the Texas oil and natural gas industry, Support Activities for Oil and Gas Operations continued to dominate the rankings for unique job listings in November with 3,433 postings, followed by Crude Petroleum Extraction (1,523), and Petroleum Refineries (1,137), 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 (4,299), Midland (933) and Odessa (524), said TIPRO. 

The top three companies ranked by unique job postings in November were John Wood Group with 586 positions, Baker Hughes (541) and KBR (412), according to TIPRO. Of the top ten companies listed by unique job postings last month, six companies were in the services sector, followed by two companies in oil and natural gas extraction and two midstream companies. 

There were 1,234 advertised salary observations, or 11 percent of total oil and natural gas job postings, with a median salary of $52,600. Based on TIPRO’s analysis, the average annual wage for the Texas oil and natural gas industry is $132,000, with average wages for the Texas upstream sector exceeding $139,000 per year.

Top posted industry occupations for November included heavy tractor-trailer truck drivers (497), managers (309) and computer occupations (226). Top qualifications for unique job postings included Commercial Driver’s License (CDL) (403), CDL Class A License (346) and Tanker Endorsement (143). When analyzing education requirements for unique industry job postings last month, TIPRO reports that 44 percent required a bachelor’s degree, 34 percent a high school diploma or GED, and 23 percent had no education requirement listed as part of the criteria.

TIPRO also highlights new data released from the Texas comptroller’s office showing production taxes paid by the oil and natural gas industry to the state of Texas generated $980 million in tax revenue in November. According to the comptroller’s data, in November, Texas oil producers paid $570 million in production taxes, up 19 percent from November 2021. Natural gas producers, meanwhile, last month also paid $410 million in state taxes, up 41 percent from November 2021. Funding from oil and natural gas production taxes is used to directly support Texas schools, roads, infrastructure and other essential services.

Additionally, TIPRO reports that oil and gas production is anticipated to continue to grow in the coming months. Oil output in the Permian Basin is forecasted to hit a record 5.58 million barrels per day (bpd) in January of 2023, according to the U.S. Energy Information Administration (EIA). In the Eagle Ford Shale in South Texas, oil output will rise by 10,000 bpd next month to total 1.24 million bpd. Overall, U.S. crude oil production is expected to go up by 94,000 bpd and will top 9.319 million bpd in January, projects the EIA. Natural gas production in the Permian Basin will also rise by 119 million cubic feet per day (Mmcf/D) and will hit record highs in January at 21.39 billion cubic feet per day (bcf/d). Natural gas output in the Eagle Ford Shale is also forecasted to reach 7.46 bcf/d in January, up 69 Mmcf/d from projected December levels. Altogether, EIA forecasts natural gas production in the United States to grow to 96.28 bcf/d in the first month of the new year.

“TIPRO’s labor analysis continues to show a high demand for employees in the Texas oil and natural gas industry,” commented Ed Longanecker, president of TIPRO. “Ensuring that we have an adequate pool of available talent to fill current and future positions in our sector will be critical to supporting economic growth in our state and providing energy security to our country and allies abroad,” concluded Longanecker.

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