Job Growth in Upstream Oil Companies Stalls

By Georgina McCartney

HOUSTON (Reuters) – Upstream oil companies wound down hiring in November, according to the Texas Independent Producers and Royalty Owners Association (TIPRO), marking the end of five straight months of job growth.

Why It's Important

Hiring in the upstream sector, which includes activities related to drilling and producing oil, can serve as an indicator of the health of the oil and gas industry. An increase in employment levels often implies more drilling is anticipated.

TIPRO represents nearly 3,000 independent producers and royalty owners across Texas, covering the prolific Permian Basin—responsible for nearly half of total U.S. crude production, as reported by the Energy Information Administration.

By the Numbers

• Direct Texas upstream employment fell by 1,500 positions last month, totaling 194,400 compared to October's figures.
• Jobs in oil and gas extraction decreased by 600, while oilfield service hiring dropped by 900 positions.
• The U.S. rig count has decreased by 34 from last year, now at 589, according to Baker Hughes.

Context

The U.S. oil industry is prepping for a new administration next year, with President-elect Donald Trump and Republicans expected to roll back regulations and support increased drilling activities.

Key Quote

"…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,” stated Ed Longanecker, TIPRO president.