TIPRO News Releases and Statements

Texas Production and Severance Taxes Expand While Upstream Employment Dips in May

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 a decrease in monthly employment for the Texas upstream sector following three consecutive months of job gains this year. According to TIPRO’s analysis, direct Texas upstream employment for May 2022 totaled 188,700, a decrease of 1,400 jobs from April numbers, subject to revisions. Texas upstream employment in May 2022 represented an increase of 25,500 positions compared to May 2021, including an increase of 5,700 in oil and natural gas extraction and 19,800 jobs in the services sector.

The Houston metropolitan area, the largest region in the state for industry employment, showed a decrease of 1,600 upstream jobs last month compared to April, for a total of 64,800 direct positions, according to TIPRO. Houston metro upstream employment in May 2022 represented an increase of 7,500 jobs compared to May 2021, including an increase of 3,300 in oil and natural gas extraction and 4,200 jobs in the services sector.

TIPRO once again noted strong job posting data for upstream, midstream and downstream sectors for the month of May showing a continued demand for talent and increasing exploration and production activities in the Texas oil and natural gas industry. According to the association, there were 11,695 active unique job postings for the Texas oil and natural gas industry in May of 2022.

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 May for unique job listings with 3,211 postings, followed by Crude Petroleum Extraction (1,625 postings) and Oil and Gas Field Machinery and Equipment Manufacturing (1,188 postings). The leading three cities by total unique oil and natural gas job postings were Houston (4,051), Midland (1,228) and Odessa (528), said TIPRO. 

The top three companies ranked by unique job postings in May were Baker Hughes with 650 positions, National Oilwell Varco (635) and Weatherford International (464), 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 midstream and two in oil and natural gas extraction. 

Top posted industry occupations for May included heavy tractor-trailer truck drivers (462), personal service managers (285) and software developers and software quality assurance analysts and testers (278). Top qualifications for unique job postings included Commercial Driver's License (556), Master of Business Administration (211) and Bachelor of Science in Business (179). When analyzing education and experience requirements for unique industry job postings last month, TIPRO reports that 38 percent required a bachelor’s degree, 36 percent a high school diploma or GED, and 28 percent had no education requirement listed. 

Despite facing a number of challenges, including workforce shortages, rising material costs and an adversarial federal policy environment, TIPRO says Texas operators are responding to the call for increased production to meet growing global demand. According to the U.S. Energy Information Administration (EIA), oil output in the Permian Basin is projected to increase by 84,000 barrels per day (bpd) to a record 5.316 million bpd in July. Total output in the major U.S. shale oil basins is forecasted to rise 143,000 bpd to 8.901 million bpd in July, the highest since March 2020.

TIPRO also highlights new data released from the Texas Comptroller’s office showing record levels of severance taxes paid by Texas oil and natural gas producers. In April, Texas oil producers paid a record $666 million to the state in oil production taxes, the highest amount in history, representing a 99 percent increase from April 2021. In May, oil producers paid $595 million in taxes, an increase of 64 percent from May 2021. Natural gas producers also paid $413 million in taxes in May, the highest monthly total on record, up 216 percent from May 2021. With three months left in the current fiscal year, the industry has already contributed a record $4.48 billion in taxes. TIPRO says this critical source of revenue supports all aspects of the state economy, including schools and education, transportation infrastructure and first responders, to name a few.“Texas upstream employment figures show a decline in May, following three months of significant growth this year, but job postings remain strong for the Texas oil and natural gas industry as companies continue to increase exploration and production activity in the state of Texas,” said Ed Longanecker, president of TIPRO. “The decrease in industry employment last month could be an anomaly and subject to further revisions or could also be attributable to workforce shortages facing many companies as they compete to fill open positions in a tight labor market. Regardless, we project continued employment growth for this sector in the coming months, and this data once again illustrates the enormous economic contributions made by the Texas oil and natural gas industry. Instead of proposing anti-American energy policies, federal elected officials should work collaboratively with U.S. producers and develop a coherent strategy to unleash domestic production, including lifting restrictions on federal lands and waters, accelerating LNG exports and approving pending LNG applications. The Federal Energy Regulatory Commission (FERC) should also end efforts to overstep its permitting authority, which will not only further delay currently proposed infrastructure projects, but also stymie billions of dollars in economic investments and drive energy prices up further,” concluded Longanecker.


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