Texas Upstream Employment Trends Indicate Talent Shortage

Advocacy group research shows a shortage of available workers and a slowdown in industry activity.

The Texas Independent Producers & Royalty Owners Association (TIPRO), an independent oil and natural gas advocacy group, has revealed that employment growth for the Texas upstream sector stalled in the fourth quarter of 2018 following many months of consecutive growth.

A variety of factors contributed to the slowdown in hiring, including takeaway capacity constraints in West Texas, lower crude oil prices, rising material costs resulting from tariffs, as well as an ongoing shortage of available talent.

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TIPRO’s data illustrates some of the employment trends in the upstream oil and natural gas sector in fourth-quarter 2018 based on its analysis of job postings to provide information such as standardized occupation, skills, and geography. This report also uses state data from the Texas Workforce Commission. Individual company data was intentionally excluded.

“This data helps to quantify and reinforce the importance of oil and natural gas development and support ongoing workforce initiatives for our industry,” said Ed Longanecker, president of TIPRO.  

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In total, there were 49,929 job postings for the Texas upstream sector between September 2018 ando December 2018, of which 7,878 were unique. These numbers provide a Posting Intensity of 6-to-1, meaning that for every 6 postings there is 1 unique job posting.

This is higher than the Posting Intensity for all other occupations and companies in the state (5-to-1), indicating that Texas upstream jobs have been more difficult to fill due to a variety of potential factors, including a shortage of available workers and a slowdown in industry activity.

Oil and gas jobs in Texas pay on average 132 percent more than the average private sector job in the state.

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