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 significant increase in monthly employment for the Texas upstream sector. According to TIPRO’s analysis, direct Texas upstream employment for June 2022 totaled 194,900, an increase of 6,100 jobs from May numbers, subject to revisions. Texas upstream employment in June 2022 represented an increase of 31,000 positions compared to June 2021, including an increase of 8,300 in oil and natural gas extraction and 22,700 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 May, for a total of 67,000 direct positions, according to TIPRO. Houston metro upstream employment in June 2022 represented an increase of 10,000 jobs compared to June 2021, including an increase of 4,400 in oil and natural gas extraction and 5,600 jobs in the services sector.
TIPRO once again noted strong job posting data for upstream, midstream and downstream sectors for the month of June. According to the association, there were 12,391 active unique jobs postings for the Texas oil and natural gas industry in June, an increase of 6 percent compared to May 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 June for unique job listings with 3,247 postings, followed by Oil and Gas Field Machinery and Equipment Manufacturing (1,547 postings), and Crude Petroleum Extraction (1,431 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 (4,594), Midland (1,199) and Odessa (520), said TIPRO.
The top three companies ranked by unique job postings in May were Baker Hughes with 1,073 positions, KBR (490) and Halliburton (436), according to TIPRO’s analysis. Of the top ten companies listed by unique job postings last month, six companies were in the services sector, followed by two companies in midstream and two in oil and natural gas extraction.
Top posted industry occupations for June included heavy tractor-trailer truck drivers (627), software developers and software quality assurance analysts and testers (335) and personal service managers (313). Top qualifications for unique job postings included Commercial Driver's License (687), Master of Business Administration (221) and Bachelor of Science in Business (182). When analyzing education and experience requirements for unique industry job postings last month, TIPRO reports that 42 percent required a bachelor’s degree, 34 percent a high school diploma or GED, and 8 percent listed a master’s degree as part of their criteria.
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 June, $679 million in oil production taxes were paid, an increase of $84 million compared to May and 87 percent higher than June 2021. Taxes paid by natural gas producers also reached a new record, with $439 million paid in June, an increase of $26 million compared to May and 176 percent higher than June 2021 numbers. TIPRO explains that 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.
Further, as announced recently by the Texas comptroller, elevated tax revenue driven by the oil and gas sector will give the state legislature more funding to use towards the state budget in 2023. According to the comptroller’s office, the state will have nearly $14 billion extra in funds available for general-purpose spending, money which will be used by lawmakers during the next legislative session to support legislative priorities and other important needs in Texas.
TIPRO reports that oil and gas output in Texas is projected to experience further growth in the months to come. Experts with the U.S. Energy Information Administration (EIA) forecast that oil production in the Permian Basin, the most nation's most prolific shale oil basin, will rise 78,000 barrels per day (bpd) to a record 5.445 million bpd in August. Oil production in the Eagle Ford Shale in South Texas is also expected to increase 25,000 bpd in August, reaching 1.205 million bpd. Additionally, natural gas production will rise in the Permian to record highs of 20.5 billion cubic feet per day (bcfd), according to the EIA, and in the Eagle Ford, natural gas production will grow to 6.8 bcfd.
“As expected, the dip in May upstream employment appeared to be an anomaly, and June numbers reflect continued demand for talent and increasing exploration and production activities in the Texas oil and natural gas industry,” said Ed Longanecker, president of TIPRO. “Recessionary fears and the potential impact of China’s draconian COVID-19 policies have continued to be offset by concerns over tight oil supplies, but we are seeing these market forces impact WTI futures. Demand will continue to outpace global supply this year, but we can expect increasing levels of volatility in the months ahead due to these and other factors, including geopolitical conflicts and growing unrest over the escalating energy crisis in Europe,” added Longanecker.
TIPRO says the hostile federal policy environment and related rhetoric for domestic oil and natural gas production is also contributing to uncertainty in the U.S. and global markets, which could drive the cost of goods and services higher for American consumers, despite the economic dampening rate-setting efforts by the Federal Reserve Board.
“U.S. policymakers are placing undue demands on energy producers. If we want price stability, and if we want to ensure a secure domestic energy supply, we need a stable regulatory environment in the U.S,” Longanecker emphasized. “Policymakers and the current administration must stop vilifying our industry and should work collaboratively with operators to develop a coherent federal energy policy strategy, including opening federal leasing, approving permitting for energy infrastructure and again providing the regulatory certainty needed to support long-term investments that are necessary to address our own energy needs and those of our allies abroad.”