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TIPRO Highlights Continued Upstream Employment Growth in December

20 Jan 2023 11:30 AM | Anonymous member (Administrator)

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 December 2022 totaled 211,200, an increase of 1,300 jobs from November employment numbers, subject to revisions. Texas upstream employment in December 2022 represented the addition of 36,100 positions compared to December 2021, including an increase of 7,000 jobs in oil and natural gas extraction and 29,100 jobs in the services sector. The average monthly gain in Texas upstream employment last year was 3,127.

TIPRO’s new employment data also indicated a significant rise in job postings for the upstream, midstream and downstream industries for the month of December. According to the association, there were 14,482 active unique jobs postings for the Texas oil and natural gas industry in December, including 6,953 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 lead in the rankings for unique job listings in December with 4,526 postings, followed by Crude Petroleum Extraction (1,982), and Petroleum Refineries (1,418). The leading three cities by total unique oil and natural gas job postings were Houston (5,688), Midland (1,217) and Odessa (677), said TIPRO. 

The top three companies ranked by unique job postings in December were John Wood Group with 820 positions, Baker Hughes (816) and KBR (576), 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. 

Top posted industry occupations for December included heavy tractor-trailer truck drivers (604), managers (414) and maintenance and repair workers (334). Top qualifications for unique job postings included Commercial Driver's License (CDL) (492), CDL Class A License (427) and Master of Business Administration (230).  TIPRO reports that 44 percent of unique job postings 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.

There were 1,758 advertised salary observations, or 12 percent of total oil and natural gas job postings, with a median salary of $52,200. Based on TIPRO’s new full year analysis for 2022, the average annual wage for the Texas oil and natural gas industry was $139,000, with average wages for the Texas upstream sector exceeding $145,000 last year.

When further examining the economic impact of the sector, TIPRO says direct Gross Regional Product (GRP), which is essentially Gross Domestic Product (GDP) for a region of study, for the Texas oil and natural gas industry was $315 billion in 2022, representing 14 percent of the state economy. Texas upstream industry direct GRP exceeded $157 billion last year. TIPRO says indirect employment tied to the Texas oil and natural gas industry also increased in 2022. When calculating direct, indirect, and induced employment for the upstream sector, for every position in Crude Petroleum Extraction, eight jobs are created in other industries, followed by Natural Gas Extraction (seven jobs), Drilling Oil and Gas Wells (two jobs) and Support Activities for Oil and Gas Operations (two jobs).

TIPRO also highlights recent 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 $887 million in tax revenue in December. According to the comptroller’s data, in December, Texas oil producers paid $516 million in production taxes, up 15 percent from December 2021. Natural gas producers, meanwhile, last month also paid $371 million in state taxes.

Additionally, TIPRO reports that oil and gas production is on track to continue to rise in the months to come. Oil output in the Permian Basin is forecasted to grow by 30,000 barrels per day (bpd) to hit a record 5.635 million bpd in February, according to the U.S. Energy Information Administration (EIA). In the Eagle Ford Shale in South Texas, oil output will also go up next month to total 1.213 million bpd. Overall, U.S. crude oil production is expected to go up by 76,000 bpd and will top 9.375 million bpd in February, projects the EIA. Natural gas production in the Permian Basin will also rise by 109 million cubic feet per day (Mmcf/D) and will hit record highs in January at 21.72 billion cubic feet per day (bcf/d). Natural gas output in the Eagle Ford Shale is also forecasted to reach 7.4 bcf/d in February, up 46 Mmcf/d from projected January levels. Altogether, EIA forecasts natural gas production in the United States to grow to 96.656 bcf/d in February.

“The oil and natural gas industry continues to have a tremendous impact on our state economy, providing high paying jobs and billions of dollars annually in taxes to support infrastructure investments, education and other essential services,” said Ed Longanecker, president of TIPRO. “We look forward to working with policymakers during the 88th Texas Legislative Session to fund programs that will help drive further growth in our sector for the benefit of our state, including road repair and maintenance in energy producing areas, seismicity research and produced water pilot projects,” concluded Longanecker.

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