
09/24/2025
Texas Breaks Employment Records as Oil and Gas Sector Fuels Growth
(The Center Square) – By Bethany Blankley, with analysis by Michael Pipkins
Texas once again leads the nation in job creation, shattering employment records in August, according to the latest data reported by The Center Square. The numbers reveal more than just raw job growth—they tell the story of a state whose economic engine continues to run on oil, gas, and energy innovation, even as Washington policies, global uncertainty, and environmental pressure threaten to slow it down.
At the center of this resilience is the Texas upstream oil and natural gas industry. After losing 1,400 jobs in July, the sector regained traction in August, adding 200 upstream jobs. While modest, that uptick pushed total upstream employment to 205,100. The numbers reflect an internal shift: 200 fewer oil and gas extraction jobs, but 400 more in oilfield services.
The Texas Oil & Gas Workers Association put those figures into perspective:
“Growth for this calendar year so far remains a positive 4,200 upstream jobs, and at 205,100 upstream jobs, compared to the same month in the prior year, August 2025 jobs were up by 2,000, or 1.0%.”
That 1% growth may seem small in isolation, but it is part of a longer arc showing how Texas continues to outperform national trends. The state’s energy workers are still earning some of the highest wages in the country, averaging $128,000 annually in 2024, even as other industries stagnate under inflationary pressures.
Understanding the Upstream Engine
The term “upstream” in oil and gas refers to the front end of the energy cycle—exploration, drilling, and extraction. In Texas, that means rigs in the Permian Basin, wells in the Eagle Ford Shale, and operators spread across the Panhandle.
What upstream doesn’t cover is equally important: refining, petrochemicals, pipelines, utilities, and oilfield equipment manufacturing. Those sectors—considered “midstream” and “downstream”—are vital, but they depend on the foundation upstream provides. Without upstream extraction, Texas would not be able to power its refineries, fill its pipelines, or support its vast export infrastructure.
In effect, upstream is the tip of the spear. Its performance signals the health of the entire Texas energy economy.
Resilience in a Time of Uncertainty
August’s rebound is notable precisely because it came after two straight months of job losses. In June and July, the sector shed a combined 2,000 jobs, reflecting global price volatility and forecasts of supply-demand imbalances.
Todd Staples, president of the Texas Oil & Gas Association (TXOGA), emphasized that August’s slight gains show the industry is adapting:
“The August employment gains are a welcome sign of the Texas oil and natural gas industry’s resilience. Despite forecasts of a supply and demand imbalance and persistent global uncertainties, companies are adapting to manage risk and continue delivering the reliable energy that powers modern life.”
Those “global uncertainties” are not small. OPEC+ production cuts, geopolitical conflicts, and regulatory bottlenecks in Washington all weigh on the sector. Add to that environmentalist pressure to “phase out fossil fuels,” and Texas operators face a landscape in which success is anything but guaranteed.
Yet, rather than retreat, Texas firms continue to innovate, hedge against risk, and deploy new technologies that make drilling safer and more efficient.
The Labor Market: Job Postings Surge
Employment data from the Texas Independent Producers and Royalty Owners Association (TIPRO) reveals just how hungry the market is for skilled labor.
In August, Texas posted 10,154 unique oil and gas job openings, compared to 8,853 in July. Of those, 3,806 were new postings. By contrast, Pennsylvania had fewer than 3,000 postings, California just over 2,500, Ohio 2,322, and Illinois 2,014.
Nationwide, nearly 60,000 job postings were listed across the oil and natural gas sector last month, including more than 20,000 new openings. Texas not only dominated the numbers but also the geography of opportunity. The top four cities for job postings—Houston, Midland, Dallas, and Odessa—were all in Texas.
Among the 19 industry subsectors TIPRO tracks, the most job listings came from Support Activities for Oil and Gas Operations. Other leading subsectors included Gasoline Stations with Convenience Stores, Petroleum Refineries, and Pipeline Transportation of Natural Gas.
Ed Longanecker, TIPRO’s president, said the trends point toward continued growth:
“The Texas oil and natural gas industry remains vital for job creation, innovation, and energy security, with 2025 employment trends driven by a variety of dynamic factors. Federal policies, including faster permitting and expanded LNG export approvals, along with transformative investment in AI-driven data centers, will support increased export activity, creating high-paying jobs in midstream, gas-fired generation and export infrastructure in the coming years.”
Longanecker’s reference to AI-driven data centers highlights an underappreciated aspect of the energy story: the digital revolution runs on electricity, and that electricity still overwhelmingly comes from natural gas. Far from being “obsolete,” fossil fuels are powering the very technologies that environmentalists say will define the future.
Tax Revenue Surges with Production
Texas’ energy sector doesn’t just provide jobs—it fills the state’s coffers. In August, oil producers paid $445 million in oil production taxes, the highest level in six months. Natural gas producers paid $194 million in production taxes, representing a 143% increase over the year.
Those tax revenues flow into the state’s General Revenue Fund and the Economic Stabilization Fund—better known as the “Rainy Day Fund.” In practical terms, every barrel pumped in the Permian helps pay for Texas schools, roads, and infrastructure.
For a state that prides itself on low taxes and fiscal conservatism, the oil and gas sector’s tax contributions remain indispensable.
Texas vs. Washington: Competing Visions
While Texas celebrates job growth, Washington has charted a different course. The previous Biden administration had leaned heavily into green energy subsidies, EPA regulations, and restrictions on leasing federal lands for drilling. Critics argue that these policies undermine U.S. energy independence, making America more reliant on foreign sources.
Texas, by contrast, has doubled down on fossil fuels, while also investing in renewable energy where market conditions make sense. The result is a hybrid model that secures reliable baseload power while fostering innovation.
The data suggests Texans aren’t waiting for federal permission. They are drilling, producing, hiring, and exporting—driving both the state and national economy forward.
What It Means for Texans
For everyday Texans, the numbers translate into several realities:
High-paying jobs: At an average salary of $128,000, upstream jobs remain a path to middle-class stability and upward mobility.
Local prosperity: Towns like Midland and Odessa live and die by energy cycles. August’s rebound means more paychecks, more tax revenue, and stronger local economies.
Energy security: The more Texas produces, the less America must import from unstable regimes abroad.
Political leverage: With Texas leading in production and job creation, the state carries significant influence in national energy debates.
At the same time, challenges remain. Energy jobs are cyclical, tied to commodity prices. Inflation continues to eat into wages. And environmental policy battles show no sign of abating.
A Broader Economic Picture
Texas’ leadership in job creation isn’t confined to energy, but energy remains its backbone. The latest employment data proves that when oil and gas thrive, the broader Texas economy benefits.
As global markets shift and federal policies evolve, Texas will continue to chart its own path—balancing innovation with tradition, and resilience with risk.
The August rebound may look like a blip on a chart. In reality, it is a reminder that Texas’ economic future remains intertwined with the industry that put it on the map. Oil and gas are not relics of the past. They are the foundation of a modern, growing, and increasingly dynamic state.
Attribution: Original reporting by Bethany Blankley of The Center Square. Additional analysis and commentary by Michael Pipkins.
# # This post first appeared on PipkinsReports.com