Growth in Upstream Jobs
In a notable development for the Texas economy, the oil and gas industry, specifically the upstream sector, has witnessed a significant surge in employment. The Texas Workforce Commission reported an impressive addition of 4,500 jobs in March alone. It marks the largest single-month growth in upstream employment since June 2011, underlining a robust expansion in this critical industry.
Stabilizing Oil Prices Fuel Growth
Dean Foreman, the chief economist for the Texas Oil and Gas Association (TXOGA), attributes this growth to the stability of oil prices. “Thanks to oil prices remaining relatively solid, the Permian Basin, the Eagle Ford, and Texas as a whole have grown on that basis,” Foreman explained. He noted that while the oil segment maintains steady growth, the natural gas sector has experienced more volatility due to historically low prices earlier this year. Despite this, demand for natural gas reached record levels in December, and we expect to continue breaking records throughout the year and into 2025.
Strong Market Demand Drives Employment
The sustained demand for oil and its derivatives is paving the way for more job creation in the upstream sector. Foreman emphasized the continuing growth in oil demand and exports. “As long as the oil markets continue to be in strong demand and the exports are growing,” he stated, “It’s clear that there’s a strong international need for it. We’re seeing a lot of vibrancy come to Texas as a result.” This trend not only revitalizes the industry but also bolsters the local economies where these oil and gas hubs are located.
Workforce Development and Opportunities
In response to the burgeoning industry, Ken Trevino, President and CEO of Workforce Solutions of the Coastal Bend, highlighted the impact of regional employment. “We have about 12,000 people currently employed in the oil and gas industry right here in the Coastal Bend,” said Trevino. With wages in these roles increasing by 3.6 percent this year over last, the sector not only promises high-paying jobs but also a stable career path.
Trevino also pointed out the need for more skilled workers in the oil patch, given the lucrative average salary exceeding $120,000. However, he raised a concern about workforce sustainability. “Interestingly, there are about 3,500 people within that 12,000 range that are going to be eligible for retirement in the next five years,” he noted, emphasizing the imminent need for fresh talent.
Preparing the Next Generation
Trevino encourages young individuals interested in a career in the oil and gas sector to engage with local workforce solutions. Training and educational programs are readily available in the Coastal Bend area, aiming to equip the next generation of workers with the necessary skills to thrive in this field.
Looking Ahead
Reflecting on the relationship between economic growth and the demand for oil and natural gas, Foreman remains optimistic about the future. “The continued strong relationship that we’ve seen since the pandemic in oil and natural gas demand, with economic growth, it just remains so intertwined that we see a bright future for Texas,” he concluded. This sentiment captures the general mood of an industry poised for continued growth and stability, offering promising prospects for the state’s workforce and economic landscape.