What's Happening?
The Texas Independent Producers and Royalty Owners Association (TIPRO) has reported a rebound in Texas upstream oil and gas employment for December 2025. According to data from the U.S. Bureau of Labor Statistics, the combined upstream employment increased by approximately 2,000 jobs month over month, reaching a total of 203,400 positions. This growth was driven by gains in both oil and gas extraction and support services. Specifically, oil and natural gas extraction employment rose by about 500 jobs to 70,200, while support activities added roughly 1,500 positions, totaling 133,200. The increase follows several months of volatility due to rig count reductions, service-sector adjustments, and efficiency gains across the industry.
Why It's Important?
The rebound
in employment is significant as it highlights the resilience of the Texas oil and gas sector despite recent challenges. The industry faced volatility due to fluctuating rig counts and service-sector adjustments, yet it managed to end the year with strong production levels. Texas continues to lead the nation in energy-related hiring activity, with cities like Houston, Midland, Dallas, and Odessa being top locations for job postings. The state's contribution to U.S. crude oil production remains substantial, accounting for approximately 42% to 43% of total volumes. This employment growth is crucial for sustaining the U.S. oil and gas supply amid global market volatility.
What's Next?
Looking ahead to the first quarter of 2026, TIPRO anticipates continued capital discipline among producers, with oil prices hovering near $60 per barrel. The association notes that geopolitical tensions may influence price fluctuations. Despite challenging market conditions, Texas is expected to maintain its central role in the U.S. oil and gas industry. The focus will likely remain on balancing production levels with market demands, ensuring the state's continued contribution to national energy supply.
