Texas Border Business
AUSTIN – 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 the third consecutive month of growth in upstream employment in Texas in the month of August 2024. According to TIPRO’s analysis, direct Texas upstream employment for August totaled 194,400, an increase of 1,000 industry jobs from revised July employment numbers. The Texas upstream employment data represents a decrease of 1,700 jobs in oil and gas extraction, and an increase of 2,700 positions in the services sector, last month.
TIPRO’s new workforce data yet again indicated strong job postings for the Texas oil and natural gas industry. According to the association, there were 11,823 active unique jobs postings for the Texas oil and natural gas industry last month, an increase of 299 posted employment opportunities compared to July and 4,602 new job postings added during the month by companies. In comparison, the state of California had 4,416 unique job postings in August, followed by Florida (2,147), New York (1,684), Pennsylvania (1,662) and Louisiana (1,564). TIPRO reported a total of 60,396, unique job postings nationwide last month within the oil and natural gas sector, an increase of 630 compared to July.
Among the 19 specific industry sectors TIPRO uses to define the Texas oil and natural gas industry, Gasoline Stations with Convenience Stores led in the ranking for unique job listings in August with 3,208 postings, followed by Support Activities for Oil and Gas Operations (2,495) and Crude Petroleum Extraction (1,021). The leading three cities by total unique oil and natural gas job postings were Houston (2,960), Midland (859) and Odessa (441), said TIPRO.
The top three companies ranked by unique job postings in August were Love’s (1,032), Cefco (994), and Energy Transfer (417), according to the association. Of the top ten companies listed by unique job postings last month, five companies were in the services sector, three in the gasoline stations with convenience stores category, one midstream company and one upstream company. Top posted industry occupations for August included first-line supervisors of retail sales workers (632), heavy and tractor-trailer truck drivers (402), and general maintenance and repair workers (371). The top posted job titles for August included assistant store manager (236), sales associates (221), and maintenance technicians (130).
Top qualifications for unique job postings included valid Driver’s License (1,934), Commercial Driver’s License (CDL) (284) and Master of Business Administration (159). TIPRO reports that 41 percent of unique job postings had no education requirement listed, 33 percent required a bachelor’s degree and 28 percent required a high school diploma or GED. There were 1,973 advertised salary observations (17 percent of the 11,823 matching postings) with a median salary of $64,900. The highest percentage of advertised salaries (25 percent) were in the $100,000 to $500,000 range.
Additional TIPRO workforce trends data:
TIPRO also highlights recent data released from the Texas comptroller’s office showing significant tax contributions provided by the Texas oil and natural gas industry during the month of August, as well as the state’s previous fiscal year. Texas energy producers last month paid $543 million in oil production taxes, an 8 percent increase from August 2023. Producers in August also paid an additional $80 million in natural gas production taxes. Revenue collected from oil and natural gas severance taxes is used help to support and pay for vital public services across the Lone Star State, including road and infrastructure investments, water conservation projects, schools and education, first responders and more. According to the state comptroller, during Fiscal Year 2024, oil and natural gas production taxes totaled $8.4 billion. More than $7 billion of that revenue will be funneled into three major components of the state budget, including the Economic Stabilization Fund ($2.7 billion), the State Highway Fund ($2.7 billion) and public education ($2.1 billion).
Additionally, TIPRO spotlights new federal data showing productivity gains and new and expanded infrastructure in the Permian Basin. The Permian, which spans across western Texas and portions of eastern New Mexico, is the highest producing oilfield in the United States. According to the U.S. Energy Information Administration (EIA), crude oil production in the Permian region will increase by 430,000 barrels per day (b/d) from 2023 to 6.3 million b/d in 2024 and reach 6.6 million b/d in 2025, partly due to drilling productivity improvements by oil and gas companies in the Permian, efficiency gains and other technological advancements in the drilling and completion process. Marketed natural gas production in the Permian region, meanwhile, is projected by the EIA to rise by 1.9 Bcf/d in 2024 and by 1.0 Bcf/d in 2025 to average 25.8 Bcf/d in 2025.
New pipelines expected to come online in the Permian will help deliver crude oil and natural gas from the region to demand centers and alleviate transportation constraints, the EIA said recently. The 580-mile Matterhorn Express Pipeline, which is expected to enter service in the third quarter of 2024, will be able to transport up to 2.5 Bcf/d of natural gas from the Waha Hub in West Texas to Katy, Texas. Three new Permian Basin pipeline projects with a combined capacity of 7.3 Bcf/d have also been approved and are in various stages of development:
· Apex Pipeline, with a capacity of 2.0 Bcf/d, is designed to transport natural gas from the Permian Basin to Port Arthur, Texas. Operator Targa Resources expects the pipeline to enter service in 2026.
· Blackcomb Pipeline, with a capacity of 2.5 Bcf/d, is designed to transport natural gas from the Permian Basin to Agua Dulce in south Texas. Operator Whitewater Midstream expects the pipeline to enter service in 2026.
· Saguaro Connector Pipeline, with a capacity of 2.8 Bcf/d, is designed to transport natural gas from the Permian Basin to the U.S.-Mexico border. The pipeline, which connects with the Sierra Madre pipeline on the Mexico side, is expected to enter service by 2027–28.
Pipeline operators have also announced other projects with a total capacity of 7.0 Bcf/d designed to transport natural gas from the Permian Basin to demand centers in Mexico and along the Texas Gulf Coast. These projects, if realized, could come into service between 2025 and 2028, noted the EIA.
“Once again, the Texas oil and natural gas industry continues to provide access to high-quality employment opportunities, reliable and affordable energy, and the advancement of important infrastructure projects despite a multitude of challenges, including a heavily politicized and uncertain federal regulatory environment,” said Ed Longanecker, president of TIPRO. “Imagine what could be accomplished if federal policymakers could establish a coherent and realistic energy policy platform in a non-partisan manner for the benefit of our country, consumers and our allies abroad. We applaud the consequential work and unwavering commitment of our industry and will continue to promote sound energy policy at all levels of government to support the exponential growth in energy demand in the years ahead,” concluded Longanecker.
About TIPRO
The Texas Independent Producers & Royalty Owners Association (TIPRO) is a trade association representing the interests of nearly 3,000 independent oil and natural gas producers and royalty owners throughout Texas. As one of the nation’s largest statewide associations representing both independent producers and royalty owners, members include small businesses, the largest, publicly-traded independent producers, and mineral owners, estates, and trusts.