(The Center Square) – Texas oil and natural gas upstream employment rebounded in December after suffering losses in November, according to the latest employment data.
Oil and natural gas extraction jobs increased by 500 over the month, bringing the total to 70,200 in December. Support activities employment increased by 1,500 jobs to 133,200. Combined, upstream employment increased by 2,000 jobs, bringing the total to 203,400, according to the data.
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.
Over the year, from January to December 2025, “employment in the Texas upstream sector showed early gains followed by later fluctuations,” the Texas Independent Producers and Royalty Owners Association (TIPRO) said. The sector reached a peak in June, July and December, “driven by robust Permian production despite market pressures.”
Support Activities employment recorded a net loss of 2,100 jobs over the year. The industry experienced a surge between February and May, which was offset by mid-year declines in June and July and “subsequent volatility, reflecting rig count reductions and service sector adjustments,” TIPRO said.
Combined, the sectors ended the year “essentially flat,” with a net change of 100 jobs, according to TIPRO’s analysis.
In fiscal 2025, the Texas oil and natural gas industry employed more than 495,500 workers. Their average wage was $133,095 a year – 68% more than the average private sector job, according to an analysis by the Texas Oil & Gas Association.
Industry workforce data “continues to indicate strong job postings for the Texas oil and natural gas industry in December,” despite a continued decline in the fourth quarter. The decline was “driven by lower oil prices, industry consolidation and ongoing efficiency gains, which allow companies to maintain or increase production with reduced hiring activity,” TIPRO explains.
Texas has the most job openings available in the industry by far, followed by Pennsylvania, California, Ohio and Illinois. The cities with the greatest number of unique oil and natural gas jobs in the country are in Texas: Houston, Midland, Dallas and Odessa. The companies with the most unique job postings in December were Love’s, Energy Transfer, ExxonMobil and Baker Hughes, TIPRO found.
The industry gains contributed to Texas again breaking jobs records in December and leading the U.S. in job gains again last year, The Center Square reported.
“Texas is America’s jobs leader because Texas is where free enterprise flourishes and where hard work is rewarded,” Gov. Greg Abbott said in a statement. “That is why Texas tops all states for business relocations and expansions. Job-creating businesses — large and small — invest with certainty in Texas and in our young, skilled, and growing workforce. With more Texans working than ever before, we begin a new year of boundless opportunity in Texas.”
In 2025, Texas once again added the most nonfarm jobs of any state in the U.S. and in December again broke its own records in three categories.
Texas broke its own records in December for having the most nonfarm jobs, the most Texans working, and the largest labor force in state history, according to the latest employment data released by the Texas Workforce Commission and Department of Labor.
The industry also paid more taxes and royalties than many other industries. Texas energy producers paid $394 million in oil production taxes and $169 million in natural gas production taxes in December, according to state comptroller data.
Over the year, the Texas oil and natural gas industry paid $27 billion in state and local taxes and state royalties in fiscal 2025.
It was the second highest total the industry paid in recorded state history, The Center Square reported.
“Twenty-seven billion in state and local tax revenue and state royalties from the Texas oil and natural gas industry translates to nearly $74 million every day that pays for Texas’ public schools, universities, roads, first responders and other essential services,” Texas Oil & Gas Association president Todd Staples said. “Beyond this essential tax revenue, Texas oil and natural gas delivers energy security at home and global stability for our allies.”
Since 2007, when TXOGA first started compiling industry tax data, the industry has paid more than a quarter of a trillion dollars in state and local taxes and state royalties, it says.
Of this amount, nearly $4 billion was paid to school districts and county governments, The Center Square reported. In fiscal 2025, Texas school districts received $2.6 billion and county governments received $1 billion in property taxes paid from mineral properties producing oil and natural gas and pipeline and gas utility companies. The data excludes refineries, petrochemicals and other industry properties.
In some counties and in dozens of school districts, the oil and natural gas industry is the primary source of tax revenue. In some counties, the industry accounts for 96% of the tax revenue brought in.
