Texas Oil and Natural Gas Employment Declines in December

News Summary

In December, Texas oil and natural gas industry faced a downturn with upstream employment dropping by 700 jobs to a total of 195,500. Despite the job loss, active job postings remain high, indicating continued demand for energy sector workers. Major cities like Houston and Midland lead in job postings, highlighting the ongoing opportunities. As production taxes increase, future projections suggest promising growth in crude oil and natural gas production ahead.

Texas Oil and Natural Gas Employment Takes a Tumble in December

Howdy, Texas! While the holiday spirit might be in full swing this December, the Texas oil and natural gas industry found itself on a bit of a rocky path. The latest figures revealed a decrease in upstream employment which left many wondering what’s next for this crucial sector.

Employment Blues

To put it simply, the December numbers are a mixed bag. The total Texas upstream employment for December stood at 195,500, which marks a decline of 700 jobs from the previous month. This downturn includes a loss of 500 jobs in Oil and Gas Extraction, along with 200 jobs in the Services sector, leaving us with a hiccup after six months of steady growth.

Remember November? It was an entirely different story back then. That month enjoyed a bit of an upward revision, adding 300 jobs compared to October. It seemed like the Texas oil and natural gas industry was on the upswing, but December threw a wrench into those plans.

Job Postings Dazzle Despite Decline

9,012 active unique job postings in December, with an impressive 2,931 new postings added right before the holiday break. The Texas oil patch is still buzzing with opportunities, even if it’s shaking off some positions.

Let’s take a look at how Texas is stacking up against other states. California contributed 3,221 unique job postings, while New York followed with 2,318, and Florida and Colorado rounded out the top four with 1,627 and 1,493 postings, respectively. Nationwide, there were 48,362 job postings in the oil and natural gas sector. Looks like Texas still holds its own!

Hotspots and Market Trends

When it comes to Texas, the cities of Houston, Midland, and Odessa are leading the charge with unique job postings. Houston had 2,242 active listings, Midland brought in 606, and Odessa had 394. On the company front, Cefco took the lead with 947 job postings, followed by Love’s with 646, and John Wood Group with 262.

What kind of positions are companies posting? Some significant occupations in December included first-line supervisors of retail sales workers with 523 openings, heavy and tractor-trailer truck drivers at 268, and general maintenance and repair workers at 262. Jobs around here are still plentiful, but it’s good to keep an eye on costs since 41% of postings had no education requirement.

Salary Insights

As for salary expectations, the data shows that the median salary for advertised positions was around $60,300. It’s interesting to note that 26% of those salaries were in the upper tier, ranging from $90,000 to $519,000. Seems there’s still a nice balance of opportunities for both entry-level seekers and seasoned professionals!

Production Taxes and Future Projections

$431 million in oil production taxes and $214 million in natural gas production taxes this December, marking a shiny 25% increase from the previous year. These taxes support essential state revenues that keep our public education and infrastructure thriving. Talk about a silver lining!

Looking ahead, the U.S. Energy Information Administration has projected that crude oil production might hit an all-time high of 13.55 million barrels per day by 2025, fueled mainly by the Permian Basin. Natural gas demand is also expected to ramp up with a projected increase of 1.4 billion cubic feet per day by 2025. So, while December may have brought some bumps, the road ahead could still be promising!

As we wave goodbye to 2024 and head into a new year, let’s keep our fingers crossed for some brighter employment news for the oil and natural gas industry here in Texas. There’s reason to believe that the Lone Star State will continue to be a powerhouse in the energy sector!