(The Center Square) – The Texas oil and natural gas industry reported job losses in October and November, according to the latest employment data released by the Bureau of Labor Statistics.
The BLS’ latest Current Employment Statistics report was released Friday after delays caused by the federal government shutdown late last year.
While Texas reported another month of job gains in November, breaking records in some industries and categories, that job growth didn’t translate to the oil and gas industry.
An analysis of the data by the Texas Independent Producers and Royalty Owners Association shows that the upstream sector saw losses coinciding with less rig counts online. The upstream sector involves oil and natural gas extraction and some types of mining. It excludes other industry sectors like refining, petrochemicals, fuels wholesaling, oilfield equipment manufacturing, pipelines, and gas utilities that support hundreds of thousands of additional jobs statewide.
Only 100 extraction jobs were added over the month bringing the total to roughly 69,600, or a 0.1% gain, according to the data. However, jobs in support industries fell by 3,600 to 131,600, or a 2.7% drop, as rig counts declined by 7.6%, TIPRO notes. Overall combined upstream employment decreased by 3,500 jobs to 201,200 between October and November, according to the data.
Last year, upstream sector employment saw “early resilience followed by late-year softening,” TIPRO notes. The industry added a net 1,400 extraction jobs, representing a 2.1% growth, peaking at 70,200 total jobs in June and July, and dropping 400 jobs from August to November, according to the data.
This was due to “robust Permian production but offset by layoffs and lower oil prices,” TIPRO notes.
Support activities reported a net loss of 3,700 jobs, representing a 2.7% loss, with a February to May surge of 2,800 jobs added. These gains were wiped out by mid-year declines when 3,400 jobs were lost in June and July and dropped even more with another 4,500 jobs lost from August to November, according to the data.
Job declines in the fourth quarter were “driven by lower oil prices, industry consolidation, and ongoing efficiency gains, which allow companies to maintain or increase production with reduced hiring activity,” TIPRO said. Job losses were also due to rig count and services reductions, TIPRO notes.
Jobs fluctuated as the Permian Basin dominated domestic production last year. Crude oil output reached an estimated 5.9 million barrels per (m/b/d) in November, led by Texas. This was the highest level ever recorded in U.S. history, according to U.S. Energy Information Agency data.
“Even with fewer rigs operating this year, productivity gains in regions like the Permian Basin and Eagle Ford Shale show the efficiency and innovation of Texas producers,” the Texas Oil & Gas Association said in a quarterly perspective. More than 42% of U.S. crude oil and nearly 30% of U.S.-marketed natural gas originates in Texas, The Center Square reported.
The industry is also experiencing a challenging market environment, TIPRO notes, pointing to actuals for West Texas Intermediate (WTI) and Brent, the international benchmark, in late 2025 and early 2026.
WTI crude prices ended at $57 to $58 per barrel (p/b) in 2025 and are currently trading in the same range in early January, “amid persistent global oversupply,” TIPRO notes.
A U.S. Energy Information Agency December 2025 Short-Term Energy Outlook projected an annual average of $65 p/b for WTI last year, “but actuals were lower due to inventory builds and non-OPEC supply growth,” TIPRO said. This year, EIA forecasts a much lower annual average of $51 p/b for WTI and $55 p/b for Brent. The first quarter average is projected to be $55 p/b for Brent and lower for WTI.
“Optimistic scenarios suggest potential rebounds toward $58 to $60 early in the year from seasonal upticks or supply disruptions, while bearish outlooks warn of further declines to $50 or below if oversupply persists,” TIPRO notes. The EIA projects Permian output to grow marginally to roughly 6.56 m/b/d in 2026, after reaching 13.6 m/b/d in 2025. Overall, U.S. crude production is expected to dip to 13.5 m/b/d, “underscoring efficiency gains but ongoing profitability pressures at sub-$60 prices that are driving cautious capital spending, workforce adjustments, and a pivot toward natural gas amid rising LNG and AI data center demand,” TIPRO notes.
Despite these challenges, “Texas producers continue to demonstrate remarkable resilience through operational efficiencies and innovation. These advancements, bolstered by supportive policies, enable the industry to effectively address current challenges while capitalizing on escalating demand from manufacturing, AI-driven data centers and international exports,” TIPRO president Ed Longanecker said. “Texas innovators stand prepared to meet this growing need, but a sustained focus on advancing pro-energy policy is indispensable to expedite critical projects, minimize unnecessary delays, safeguard jobs and reinforce the nation’s energy dominance.”
