The Texas Independent Producers and Royalty Owners Association (TIPRO) today highlighted new employment figures showing a decline in upstream employment in Texas in the month of November following five months of consecutive growth. The TIPRO analysis Cites the latest Current Employment Statistics (CES) report from the U.S. Bureau of Labor Statistics (BLS).
According to TIPRO’s analysis, direct Texas upstream employment for November totaled 194,400, a decrease of 1,500 industry positions from October employment numbers, subject to revisions. This represented a decline of 600 jobs in Oil and Gas Extraction and 900 in the Services sector. TIPRO notes that employment fluctuations are normal and demand for talent remains high in the Texas oil and natural gas industry.
TIPRO’s new workforce data yet again indicated strong job postings for the Texas oil and natural gas industry. According to the association, there were 10,157 active unique jobs postings for the Texas oil and natural gas industry last month, including 3,047 new postings. In comparison, the state of California had 3,476 unique job postings in November, followed by New York (2,530), Florida (1,784), Pennsylvania (1,340) and Oklahoma (1,521). TIPRO reported a total of 51,420 unique job postings nationwide last month within the oil and natural gas sector.
Among the 19 specific industry sectors TIPRO uses to define the Texas oil and natural gas industry, Gasoline Stations with Convenience Stores led in the ranking for unique job listings in November with 2,563 postings, followed by Support Activities for Oil and Gas Operations (2,319) and Crude Petroleum Extraction (690). The leading three cities by total unique oil and natural gas job postings were Houston (2,538), Midland (717) and Odessa (396), said TIPRO.
TIPRO also highlights tax contributions by the oil and gas industry for essential government coffers. In November, Texas energy producers paid $488 million in oil production taxes, according to recent data released by the Texas comptroller’s office. Producers last month also paid $157 million to the state in natural gas production taxes. Production taxes paid by the oil and natural gas industry are used to support major revenue streams for the state, including public education funding, the State Highway Fund, the Rainy Day Fund and other vital parts of the state budget.
Looking to the new year, TIPRO notes new production forecasts by the U.S. Energy Information Administration (EIA) showing sustained growth in U.S. crude oil production for 2025. U.S. crude oil production next year is projected to average 13.5 million barrels per day (bpd). This will follow record-breaking production in August, when an average of 13.4 million b/d of crude oil was produced in the United States. Domestic production of natural gas is also forecasted to go up in the next year, driven by higher output from the Permian Basin. Higher prices and increased demand from nearby new liquefied natural gas (LNG) export projects that will be ramping up production are expected to help support and boost the production of natural gas in 2025.
A long-awaited study by the U.S. Department of Energy (DOE) was released this week examining the impact of U.S. LNG exports. While Energy Secretary Jennifer Granholm states the agency’s assessment “reinforces that a business as usual approach is neither sustainable nor advisable,” there’s a multitude of inaccuracies that skew DOE’s synopsis of the LNG industry. Texans for Natural Gas (TNG), a TIPRO education campaign, has reported on LNG export trends and the many positive contributions over the years. “Business as usual” for Texas’ LNG industry has spurred economic growth and infrastructural development at home while simultaneously supporting affordable and reliable energy access for global allies. DOE’s study reaffirms the Biden Administration’s track record of politics over providing a secure energy future.
TIPRO also has voiced disappointment over the many unsuccessful attempts to pass the Energy Permitting Reform Act of 2024 (EPRA) in Congress. In the U.S., gaining permits to build energy infrastructure and connecting it to the electric grid is harder today than at any point in recent memory. Projects built between 2018 and 2022 face an average wait time of four years before they can connect to the grid, up from less than two years for projects built between 2000 and 2007. Unclear and overlapping mandates, poor coordination among federal agencies and unnecessarily long timelines are just some of the many hurdles energy projects face in development.
TIPRO says permitting reform has fallen out of consideration for the Continuing Resolution (CR). With a Republican-controlled House and Senate, policymakers will likely revamp their strategy in the Spring and TIPRO remains hopeful that these challenges will be adequately addressed in the near-term.
“The continued success of the U.S. oil and natural gas industry relies heavily on providing a stable regulatory environment for domestic production and the build out of energy infrastructure,” said Ed Longanecker, president of TIPRO. “Despite facing numerous challenges in recent years from a policy standpoint, our industry has managed to overcome many obstacles to continue providing affordable and reliable energy in order to meet growing global demand. The impact of those policies vary greatly within our industry, however, and TIPRO looks forward to working with the new administration to unleash the true potential of the U.S. oil and gas industry and will advocate accordingly on behalf of our members,” concluded Longanecker.
This article was originally posted at www.worldoil.com
Be the first to comment