Texas Oil & Natural Gas Production Rises as Employment Growth Stalls: Ed Longanecker

By Ed Longanecker, TIPRO

 

According to the Texas Independent Producers & Royalty Owners Association (TIPRO), crude oil production in the state of Texas totaled an estimated 1.35 billion barrels through November of 2018, representing an increase of 209 million barrels of oil produced compared to the same timeframe in 2017, and a total of 1.5 billion barrels forecasted for the full year. Natural gas production increased slightly for a total of 7.5 trillion cubic feet of gas produced through November. TIPRO reports that most of the increased output and related activity came from West Texas with Permian Basin oil production surging last year.

 

“With lower crude oil prices and increasing service costs, many operators are understandably looking at scaling back spending to stay within cash flow until market conditions improve,” said Ed Longanecker, President of TIPRO. “Despite numerous operators cutting capex in 2019, Texas oil and gas production is expected to rise in the coming months as additional pipeline capacity comes online in the Permian Basin, OPEC production cuts take full effect, oversupply concerns ease, and progress is made with U.S. China negotiations,” added Longanecker.

 

While 2018 oil and natural gas production continued to rise, industry job growth stalled in November. More than 10,000 net new oil and natural gas jobs were added to the state’s economy through November of 2018 compared to 2017, for a total of 336,000 workers directly employed by the industry. Upstream sector jobs accounted for the majority of the employment growth last year with more favorable market conditions driving increased exploration and production activity, with a total of 78,000 oil and gas extraction jobs and 142,000 oil and gas support activities jobs in the state through November.

 

“Job growth in the Texas upstream sector was essentially flat in November compared to many months of consecutive growth. A slowdown in employment was expected due to the impact of takeaway capacity constraints in West Texas, lower crude oil prices, added expense to E&P projects from increasing service costs, as well as rising material costs resulting from steel and aluminum tariffs. Ongoing innovation and efficiencies being utilized in the industry, expanding pipeline capacity, and an expedited resolution to trade disputes will support increased energy production and job growth for the state of Texas,” added Longanecker.

 

Texas Upstream Oil & Natural Gas by the Numbers:

Payrolled Texas Upstream Business Locations (2018) 8,871
Texas Upstream Jobs Multiplier 3
Total Texas Upstream Employment in 2018 220,000
 

U.S. Upstream Employment Trends

 

 

Region 2017 Jobs 2018 Jobs Change % Change
Texas 214,247 219,777 5,530 2.6%
Alaska 9,840 9,646 -194 -2.0%
California 14,426 14,641 215 1.5%
Colorado 22,199 23,084 885 4.0%
Illinois 1,799 1,804 5 0.3%
New Mexico 17,350 18,203 853 4.9%
North Dakota 16,091 16,969 878 5.5%
Ohio 6,587 6,884 297 4.5%
Oklahoma 47,006 48,811 1,805 3.8%
Pennsylvania 15,430 16,143 713 4.6%
 

Top Texas Upstream Occupations

Description Employed in Texas Upstream Sector (2018) % of Total Jobs in Texas Upstream Sector (2018)
Roustabouts, Oil and Gas 21,193 9.6%
Service Unit Operators, Oil, Gas, and Mining 19,065 8.7%
Heavy and Tractor-Trailer Truck Drivers 11,093 5.0%
Petroleum Engineers 10,393 4.7%
First-Line Supervisors of Construction Trades and Extraction Workers 10,379 4.7%
 

Texas Upstream Gender Breakdown

 

 

Gender      2018 Jobs   2018 Percent  

 

Males 176,413 80.3%
Females 43,364 19.7%

Texas Upstream Age Breakdown

Age 2018 Jobs 2018 Percent  

 

14-18 362 0.2%
19-24 11,105 5.1%
25-34 61,182 27.8%
35-44 57,087 26.0%
45-54 44,286 20.2%
55-64 36,679 16.7%
65+ 9,075 4.1%

Texas Upstream Industry Race/Ethnicity Breakdown

 

 

Race/Ethnicity 2018 Jobs 2018 Percent  

 

White 129,881 59.1%
Hispanic or Latino 68,150 31.0%
Black or African American 11,396 5.2%
Asian 7,847 3.6%
Two or More Races 1,480 0.7%
American Indian or Alaska Native 852 0.4%
Native Hawaiian or Other Pacific Islander 171 0.1%
 

Top Texas Upstream Purchases (2018)

Purchases from In-State Purchases (Texas) Out of State Purchases (U.S.) Total Purchases
Crude Petroleum Extraction $3,515,144,685 $10,701,005 $3,525,845,691
Corporate, Subsidiary, and Regional Managing Offices $1,530,529,469 $1,052,505,449 $2,583,034,918
Pipeline Transportation of Natural Gas $1,236,379,741 $24,426,538 $1,260,806,279
Offices of Lawyers $932,448,125 $173,375,983 $1,105,824,108
Natural Gas Extraction $1,090,379,101 $2,646,760 $1,093,025,861