Texas Upstream Jobs Decline as State Oil and Gas Taxes Reach Nearly $800 Million
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Texas upstream oil and gas employment experienced a slight dip in September, contracting by 500 positions to land at 196,400, according to data from the Bureau of Labor Statistics analyzed by the Texas Independent Producers and Royalty Owners Association (TIPRO). The monthly decline was split between oilfield services, which shed 400 jobs (dropping to 133,800), and extraction activities, which decreased by 100 jobs (to 62,600).
Despite the minor setback, overall industry employment in the state remains up by 2.1% (4,000 jobs) since January 2024. Following a year-to-date peak of 197,300 jobs in May and subsequent fluctuations through the summer—including a revised 1,500-job drop in July—the current workforce sits just 900 jobs shy of its high point.
Recruitment efforts across the state remain robust. TIPRO reported 12,719 unique job openings in Texas during September, with over 5,400 of those being new listings. Operations support led the sector in hiring demand with 2,883 listings, while Houston (3,216), Midland (938), and Odessa (583) emerged as the primary hiring hubs. Across the entire United States, oil and gas job postings reached nearly 74,000 for the month.
Concurrently, state tax collections from energy production posted significant year-over-year gains in September:
* **Oil Production Taxes:** Generated $507 million, reflecting a 14% increase.
* **Natural Gas Production Taxes:** Reached $290 million, marking a 30% jump.
Looking ahead, the U.S. Energy Information Administration’s (EIA) October forecast anticipates historical highs for domestic energy output. Driven largely by Texas basins—including the Permian, Eagle Ford, and Haynesville—U.S. crude oil production is projected to reach 13.87 million barrels per day (bpd) in 2026 and 14.30 million bpd in 2027. Natural gas output is similarly expected to expand to 123.5 billion cubic feet per day (Bcfd) in 2026 and nearly 128 Bcfd the following year.
Addressing the figures, TIPRO President Ed Longanecker noted that the minor employment drop does not diminish the overall strength of the market, emphasizing that Texas energy production remains a vital buffer against global supply instability while maintaining solid hiring momentum.
