Texas oil and gas industry posts modest job gains in April

The upstream sector includes oil and natural gas extraction and some mining activity. 

It excludes other industry sectors such as refining, petrochemicals, fuels wholesaling, oilfield equipment manufacturing, pipelines and gas utilities, which all support hundreds of thousands of jobs statewide. 

Employment in the Texas upstream sector increased by 400 jobs in April, reflecting a decline of 1,300 jobs in oil and natural gas extraction (63,000) and an increase of 1,700 jobs in support activities (130,200), according to an analysis by the Texas Independent Producers and Royalty Owners Association.

“The decline in extraction was more than offset by growth in support activities, reflecting the industry’s shift toward service-oriented operations such as well maintenance, completions and logistics,” TIPRO President Ed Longanecker told The Center Square.

“Overall, the data shows a resilient and adapting Texas oil and gas industry,” he said. “While certain segments like direct extraction have seen some contraction as companies improve efficiency, the broader upstream sector is growing, job demand remains robust, and production continues setting records. This balance of efficiency and strength is exactly what allows Texas to deliver stable energy supplies during periods of global market disruption.”

Total upstream employment is below the peaks reported in 2022 and 2023.

“However, the sector has demonstrated stabilization and recent month-over-month gains amid efficiency improvements and sustained high production levels,” Longanecker said.

The data “underscores the enduring strength and adaptability of Texas’ energy sector despite recent market fluctuations,” Texas Oil & Gas Association President Todd Staples said in a statement. “While it is premature to assume the increased employment will continue, announcements have been made that some companies are expanding production.

“These increased job numbers are a tremendous benefit to the families who are supported by this industry and are important for the communities in which they occur,” Staples said.

Prior to 2007, TXOGA noted, Texas upstream employment totals were consistently below the September 2020 low of roughly 157,000 jobs. From 1998 through 2006, upstream employment averaged about 142,000, it says. 

“As past cycles demonstrate, periods of decline followed by recovery are a recurring feature of the industry,” according to TXOGA.

Even though rig counts are down, “broader measures show industry strength through rising employment in support services, strong job postings, and record U.S. oil and gas production. Operators continue to focus on completing wells, optimizing existing assets, and expanding support operations, which supports employment even as drilling activity moderates,” Longanecker said.

The industry showed strong job postings last month, TIPRO noted. There were 9,780 unique industry job postings in Texas in April, a 7% increase over the month. Texas continues to have the most jobs available in the industry. Pennsylvania had the second most, followed by California, Ohio and Illinois, according to the TIPRO’s analysis. 

There were more than 61,000 unique job postings last month nationwide, an increase of 1% over the month.

The jobs data is also consistent with U.S. Energy and Information Administration data showing ongoing records being broken in oil and gas production.

Crude oil output increased by 3% nationwide last year, led by Texas. Last year’s average was an historic 13.6 million barrels per day (b/d) with the majority of growth coming from the Permian Basin in west Texas and southeastern New Mexico. Oil production grew last year by 280,000 b/d, topping 6.6 million b/d, according to EIA data.

Marketed natural gas production also reached an all-time high, increasing by 5.3 billion cubic feet per day (Bcf/d) last year, averaging 118.5 Bcf/d. Most of this growth occurred in the Permian, followed by Appalachia and Haynesville regions, according to the data.

In the first quarter of 2026, marketed natural gas production increased by 4%, averaging 120.2 Bcf/d, according to EIA data.

The increased production partially reflects increased global demand for crude oil products as the Iran conflict continues to disrupt Middle East shipments. In response, Texas continues to break production and liquified natural gas export records, The Center Square reported.

The Texas industry continues to remain strong and adaptable to severe global energy market disruption, Longanecker said. 

“As international supply chains remain constrained and global inventories draw at record rates, Texas producers have sustained strong operational activity, supported rising employment and delivered increasing volumes of crude oil and LNG to both domestic markets and key international allies,” he said. “These results demonstrate Texas’ critical role in helping stabilize global energy supplies and supporting economic growth at home during a period of heightened volatility.”