(The Center Square) – The Texas oil and natural gas industry again reported job gains in May although it was another month of job declines in the upstream sector, which includes extraction.
The industry gained 4,100 jobs in May over the month, according to the latest labor data. This includes a loss of 300 jobs in the upstream sector and a gain of 4,400 service sector jobs over the month.
This is after the upstream sector reported 1,300 jobs losses in April, The Center Square reported.
There were 62,600 employed in the upstream sector and 134,900 in the services sector in May, according to an analysis of the latest employment data by the Texas Independent Producers and Royalty Owners Association (TIPRO). Total employment was 197,500 last month, up from 193,300 in March.
The numbers are down from previous years that topped 200,000. This year’s industry jobs numbers are still well above pre-2007 norms, when upstream sector jobs routinely averaged closer to 142,000, the Texas Oil & Gas Association says.
The upstream sector includes oil and natural gas extraction and related support activities. It excludes refining, petrochemicals, pipelines, and equipment manufacturing, which support hundreds of thousands of additional jobs in Texas.
“Texas oil and gas employment trends this month underscore the industry’s strength and adaptability amid escalating global energy market volatility,” TIPRO president Ed Longanecker said in a statement. “International supply disruptions have heightened uncertainty and global inventories continue to draw at record rates. In this environment, Texas producers have maintained robust operational activity and delivered increasing volumes of crude oil and liquefied natural gas to domestic markets and key international allies.
“These results highlight the critical role of United States oil and natural gas production in stabilizing global energy supplies during periods of severe international disruption. Even if an agreement with Iran holds, a significant uncertainty, it will take months to normalize global supply. Continued engagement with policymakers remains essential to preserve regulatory certainty, advance practical permitting reforms and support the infrastructure investments needed to maintain Texas leadership in reliable American energy production.”
The Texas oil and gas industry again reported strong job postings last month, with 10,409 unique jobs listed, an increase of 6% over the month, according to the data. Texas has the greatest number of jobs available, followed by Pennsylvania, California, Ohio and New York.
Industry job gains were posted as Texas also had a stronger overall jobs report in May, The Center Square reported. This included a new employment record and again outpacing the national employment growth rate.
Among the 19 specific industry sectors TIPRO uses to define the Texas oil and natural gas industry, support activities for oil and gas operations had the most unique job listings. The cities with the greatest number of unique job postings were Houston, Midland, Odessa and Dallas. The top four companies with the most unique job postings were Loves, Baker Hughes, Energy Transfer and ExxonMobil, according to the analysis.
The industry supports more than 495,000 direct jobs with an average salary of $133,000, according to TXOGA Energy & Economic Impact Report. The industry also paid more than $27 billion in taxes and royalties last year, which fund schools, roads and emergency services statewide, The Center Square reported.
“Steady energy jobs mean steady local economies,” TXOGA argues.
With news of a ceasefire agreement reached between the U.S. and Iran, Texas industry leaders remain optimistic but also emphasize it will take months for the region to stabilize and operations to return to normal, The Center Square reported.
The Straight of Hormuz’s 100-plus-day closure negatively impacted the markets, caused gas and fuel prices, as well as groceries and other commodities, to increase. It also created increased demand for U.S. exports, which reached a record high in April of 5.8 million barrels per day (b/d). May net exports remained close to that level.
The U.S. Energy Information Agency projects U.S. crude oil and petroleum product net exports to average 4.2 million b/d this year, up 1.4 million b/d from 2025. It also forecasts that average U.S. LNG exports will increase to 16.4 bcf/d in 2026 and surge to 18.1 bcf/d in 2027, up from a record 15 bcf/d in 2025.
Texas continues to lead as a global energy supplier with continued record energy exports, The Center Square reported.