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Texas continued to add oil and gas jobs in October, a sign that energy companies expect that global demand for oil will remain strong as a supply crunch keeps prices high.
The industry
added 2,800 jobs last month, according to an analysis of
Texas Workforce Commission data
by the Texas Oil & Gas Association, an industry trade group. Employment in the state’s upstream sector, which includes extraction and production, reached 207,000 in October, up more than 20 percent from 170,500 jobs at the same time last year.
The group also said
September numbers were revised upward
to 2,200 jobs added from the 900 initially reported.
“Texas oil and natural gas producers are steadily adding jobs as our state’s economy continues to strengthen even amidst high inflation,” said Todd Staples, president of the Texas Oil & Gas Association.
Businesses have been reporting increasing costs for resources because of inflation, according to a
survey of energy executives
from the Dallas Fed in September, and expect those cost pressures to continue into next year.
When Russia invaded Ukraine this year, it pushed oil prices to multiyear highs. The war also exacerbated supply chain issues lingering from the pandemic, making it harder for companies to get needed resources. Inflation has meant that when they are able to secure parts and equipment, they’re paying more than in recent years.
Companies also told the Dallas Fed they’re still short on workers. Another industry group, the Texas Independent Producers and Royalty Owners Association, analyzes job postings for work in oil and gas. It said that right now in Texas, there are over 1,500 postings for petroleum extraction jobs and an additional 3,800 for support services for oil and gas.
Still, companies have managed to add around 50,000 upstream jobs in Texas since the lows experienced during the COVID-19 downturn, according to the Oil & Gas Association. Since September 2020, which the group defines as the COVID low point, the upstream sector has averaged growth of 2,000 jobs per month.
While the industry has added jobs since drilling came to a near standstill in 2020 because of the pandemic, analysts say growth has been more measured as companies respond to demands for capital discipline from investors. Jobs have climbed back above 200,000 in Texas this year thanks to high oil prices, but when oil was over $100 in 2014, the state employed more than 300,000 people in the upstream sector.
Even with high prices this year, companies have chosen to mostly stick with planned production schedules, resulting in record profits. That’s allowed companies to offer bigger payouts to investors, many of whom were burned by companies overspending in shale basins during the past decade. Investors have pressured companies to focus less on growth and more on increasing efficiency and shareholder returns.
kyra.buckley@chron.com
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