Following Decline in Texas Upstream Employment Numbers, TXOGA Issues Cautionary Note

AUSTIN - Newly released data from the Texas Workforce Commission indicates upstream oil and gas employment fell again in June, with a decline of 2,000 jobs compared to May. This marks 5 out of 6 months this calendar year that the job count has dropped.

"March's historic increase in jobs in the Texas oil and natural gas industry's upstream sector is a result of this industry's commitment to ensuring that American energy leadership's homebase continues to be here in the Lone Star State," said Todd Staples, president of the Texas Oil & Gas Association. "These job gains mean economic growth for Texas communities and families, energy security for the United States, and much-needed stability for our trading partners around the globe."

Following the release of this employment data, Todd Staples, president of the Texas Oil & Gas Association (TXOGA), issued this statement:

"Operational efficiencies are driving strong production with fewer rigs, which can translate to declining industry job numbers. Baker Hughes data indicate the national rig count has declined 14 percent from 687 in June 2023 to 588 active rigs in June 2024. By contrast, the U.S. Energy Information Administration estimates rig productivity gains in excess of 20 percent year-over-year across major shale basins, with many companies maintaining or increasing production despite running fewer rigs. These productivity gains result in big benefits for consumers as prices have remained relatively stable despite geopolitical unrest.

"U.S. estimated crude oil production for the week ended July 12, 2024, indicated 13.3 million barrels per day (mb/d), a big jump from 12.3 mb/d for the same week last year. Texas estimated crude oil production in June 2024 was 5.6 mb/d, a 1.9% year-over-year (y/y) increase.

"Estimated U.S. natural gas marketed production for the week ended July 17, 2024, was 115.1 billion cubic feet per day (bcf/d) as compared to 114.3 bcf/d same week last year. Texas estimated natural gas marketed production in June 2024 was 32.2 bcf/d, an increase of 1.7% y/y.

"Operational decisions in the industry are also influenced by current and projected demand for oil, available supply levels and policy decisions. Policies limiting the development or use of oil and natural gas in transportation, power generation and exports can also impact Texas, which is by far the nation's leading producer of oil and natural gas, accounting for about 43% and 28%, respectively, of the total U.S. supply.

"Clearly, oil and natural gas companies are delivering more energy with greater efficiency and lower emissions than ever before. To maintain our energy leadership, we need state and federal policies that promote continued infrastructure development, streamline permitting and recognize companies have choices where they can invest their dollars. Smart, predictable, and science-based policies will ensure Texas continues to be the nation's energy leader."

+++

Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.