Why Demand for Upstream Oil & Gas Workers is Soaring in Texas

Demand for Oil & Gas workers is soaring in Texas meaning companies in the sector are struggling to source the labor they need.

Figures published by the Texas Independent Producers and Royalty Owners Association (TIPRO) showed that Texas upstream employment increased by 25,500 jobs year-on-year in May 2022 to reach a total of 188,700 jobs.

This represented a year-on-year increase of 16% on the total for May 2021.

The 25,500 increase consisted of 5,700 oil and natural gas extraction jobs and 19,800 service sector jobs.

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Which City In Texas Is Leading The Way?

The Houston metropolitan area is the largest region in Texas for Oil & Gas industry employment – metro upstream employment in the city increased by 7,500 jobs year-on-year in May 2022 to reach a total of 64,800 jobs.

The increase in Houston included 3,300 oil and natural gas extraction jobs and 4,200 jobs in the services sector.

In general, TIPRO said there had been “strong posting data” for upstream, midstream and downstream sectors in Texas as a whole for the month of May “showing a continued demand for talent and increasing exploration and production activities in the Texas oil and natural gas industry”.

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What Parts of the Industry Are Experiencing the Biggest Worker Shortage?

According to TIPRO, there were 11,695 active unique job postings for the Texas oil and natural gas industry in May 2022.

The parts of the industry suffering from the biggest shortage of workers were as follows:

•    Support activities for Oil and Gas operations (3,211 postings)
•    Crude petroleum extraction (1,625), and
•    Oil and Gas field machinery and equipment manufacturing (1,188).

Meanwhile, the three cities experiencing the highest demand for workers were:

•    Houston (4,051 postings)
•    Midland (1,228) and,
•    Odessa (528).

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What type of workers are most in demand?

The TIPRO data revealed that the following workers were most in demand:

•    Heavy tractor-trailer truck drivers (462 postings)
•    Personal service managers (285), and
•    Software developers and software quality assurance analysts and testers (278)

And the indications are that demand for workers is expected to rise further as Oil & Gas production in the US increases.

Figures published by the US Energy Information Administration (EIA) showed that oil output in the Permian Basin in Texas and New Mexico is due to rise by 84,000 barrels per day (bpd) to a record 5.316 million bpd in July this year as producers respond to the call to increase domestic production to address supply shortages.

Despite the challenges posed by labor shortages and rising costs, TIPRO expressed its confidence in the Texas Oil & Gas sector’s ability to surmount such obstacles. “Despite facing a number of challenges, including workforce shortages, rising material costs and an adversarial federal policy environment, Texas operators are responding to the call for increased production to meet growing global demand.”

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Worker demand set to increase further

Demand for Oil and Gas workers will increase further in the coming months, TIPRO has predicted.

This will result in companies in the sector finding it even more difficult to source the labor they need.

TIPRO has projected “continued employment growth for this sector in the coming months”. The association added that workforce shortages are affecting many companies as they “compete to fill open positions in a tight labor market”.

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How to Find the Right Candidates

A high-quality staffing partner will connect you with the Oil & Gas workers you need. Ask your partner to analyze your specific requirements and identify the best candidates. Your partner should also create a pool of backup candidates to ensure your project is always fully staffed.

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Learn More

Workrise can help with training, staffing, and professional services so you can get back to focusing on what you do best. Get started by learning more about what we do in Upstream Oil & Gas.