What's Happening?
The Texas Independent Producers and Royalty Owners Association (TIPRO) reported a rebound in Texas upstream oil and gas employment in December 2025. According to the U.S. Bureau of Labor Statistics, upstream employment increased
by approximately 2,000 jobs, reaching a total of 203,400. This growth was driven by gains in both oil and gas extraction and support services. Despite a challenging year marked by rig count reductions and service-sector adjustments, Texas maintained strong oil and gas production levels. The state contributed significantly to the U.S. crude oil production, which reached a record average of 13.6 million barrels per day. Natural gas production also hit record levels, although job postings in the sector declined due to softer oil prices and continued consolidation.
Why It's Important?
The rebound in Texas upstream employment is a positive sign for the state's economy and the broader U.S. energy sector. Texas plays a crucial role in sustaining the country's oil and gas supply, especially in a volatile global environment. The increase in employment reflects the resilience of the industry despite market challenges. However, the decline in job postings and ongoing consolidation indicate that the sector is still navigating economic uncertainties. The situation underscores the importance of capital discipline and strategic planning for producers to maintain stability and growth. The developments in Texas could influence energy policies and investment decisions at both state and national levels.
What's Next?
Looking ahead, TIPRO anticipates continued capital discipline among producers in the first quarter of 2026. Oil prices are expected to hover near $60 per barrel, with potential increases due to geopolitical tensions. The industry will likely focus on efficiency gains and strategic investments to navigate market fluctuations. Texas is expected to remain a key player in the U.S. energy landscape, contributing to national energy security and economic growth. Stakeholders will monitor market conditions and policy developments to adapt to changing dynamics and ensure sustainable operations.
