Upstream oil and natural gas employment in Texas totaled 198,700 jobs in March, up by 1,500 positions from the prior month and up by 20,000 year/year, the Texas Independent Producers and Royalty Owners Association (TIPRO) said in a new report.
The gain from a year earlier included an increase of 1,100 jobs in oil and natural gas extraction and 18,900 jobs in the services sector, TIPRO said.
Despite lower commodity prices – notably including weak natural gas prices so far this year amid light weather-driven demand – gas production held at elevated levels around 101.6 Bcf/d in the first quarter, according to the Energy Information Administration (EIA). That was up 1.4% over 4Q2022 output and was close to record levels just above 102 Bcf/d reached last year. Petroleum output throughout the first quarter hovered around a two-year high of 12.3 million b/d in the first quarter, EIA has reported.
Natural gas exited the recent injection season with an estimated 1,856 Bcf in storage, a 19% surplus to the five-year average, according to EIA. In its latest Short-Term Energy Outlook, EIA modeled average natural gas domestic production of 100.9 Bcf/d for full-year 2023, a 3% increase over 2022 output.
Benchmark Henry Hub natural gas prices recently held close to $2.00/MMBtu – less than half the level of late 2022. However, the robust production levels are in response to strong global demand for U.S. exports of both crude and LNG, with the latter bolstered by Europe’s thirst for liquefied natural gas since the onset of Russia’s war in Ukraine. Strong production has fueled upstream activity and bolstered hiring levels.
The oil and gas industry “continues to ramp up employment and production in line with growing demand for our product here and abroad,” said Ed Longanecker, president of TIPRO.
TIPRO crunches federal data in tandem with the Texas Oil & Gas Association to arrive at the monthly state employment figures.
“Job growth in Texas’ oil and natural gas industry even in the midst of turbulent economic times is a continued testament to the demand for the irreplaceable products that help power our modern lives,” said Todd Staples, president of the association.
According to TIPRO, there were 14,491 active unique job postings for the Texas oil and natural gas industry in March – up 21% from February and up 35% from a year earlier -- including 6,193 new job postings added in the month.
Of the top 10 companies listed by unique job postings last month, five were in the services sector, followed by three midstream companies, one in gasoline stations with convenience stores, and one in oil and natural gas extraction. Top posted industry occupations for March included maintenance and repair workers (469), heavy tractor-trailer truck drivers (428) and managers (402). The top posted job titles for March included lease operators (96), field service technicians (96) and maintenance technicians (86), TIPRO said.
Additionally, TIPRO highlighted updated data released from the Texas comptroller’s office that showed Texas energy producers paid $427 million in oil production taxes and $267 million in natural gas production taxes in March.
Overall, Texas employment reached a state-record level in March. The seasonally adjusted civilian labor force increased by 78,800 last month to reach a peak of 14.9 million workers, while the unemployment rate held steady at 4.0, according to the Texas Workforce Commission (TWC).
“The state’s private industries are booming,” said TWC Commissioner Aaron Demerson.
