Upstream jobs in Texas oil fell in November, an industry group says

Written by Georgina McCartney

HOUSTON (Reuters) – Oil drilling companies halted hiring in November, ending five straight months of job growth, the Texas Association of Independent Producers and Royalty Owners (TIPRO) said on Friday.

Why is it important

Employment in the exploration and production sector, which includes activities related to drilling and oil production, can serve as an indicator of the health of the oil and gas industry. Companies bringing on more employees could mean more potholes in the future.

TIPRO represents nearly 3,000 independent producers and royalty owners throughout Texas, home to the prolific Permian Basin that accounts for just under half of all U.S. crude oil production, according to the Energy Information Administration.

In numbers

Direct employment in Texas last month fell by 1,500 jobs to 194,400 compared to October employment numbers, according to TIPRO.

Jobs in oil and gas extraction fell by 600 jobs, while employment in oilfield services fell by 900 jobs.

The number of US drilling rigs fell by 34 rigs compared to last year to 589 rigs, according to data from oilfield services company Baker Hughes.

Context

The US oil industry is preparing to take on new management next year, as President-elect Donald Trump and Republicans are expected to roll back regulations and encourage more oil and gas exploration.

Main quote

“…TIPRO looks forward to working with the new administration to unleash the true potential of the American oil and gas industry and will advocate accordingly on behalf of our members,” said Ed Longanecker, TIPRO President.

(Reporting by Georgina McCartney in Houston)