Austin, Texas, January 31, 2026
The Texas upstream oil and natural gas sector saw a considerable increase in employment in December, adding 2,000 jobs to reach a total of 203,400 positions. This growth was propelled by boosts in both oil and natural gas extraction and support activities, highlighting the sector’s resilience despite earlier fluctuations in the year. The Texas oil and natural gas industry remains crucial for the local economy, employing over 495,500 workers with an average annual wage significantly above the state average.
Texas Upstream Sector Adds 2,000 Jobs to Close Out 2025
Austin, Texas – The Texas upstream oil and natural gas sector experienced a significant rebound in December 2025, adding 2,000 jobs to reach a total of 203,400 positions. This growth was driven by a 500-job increase in oil and natural gas extraction, bringing the total to 70,200, and a 1,500-job rise in support activities, reaching 133,200.
December 2025 Employment Data
- Total Upstream Employment: 203,400 jobs
- Oil and Natural Gas Extraction: 70,200 jobs (+500)
- Support Activities: 133,200 jobs (+1,500)
Annual Employment Overview
Throughout 2025, the Texas upstream sector saw fluctuations in employment. While early months showed gains, the latter part of the year experienced volatility due to factors such as rig count reductions and service-sector adjustments. Despite these challenges, the sector ended the year with a net loss of approximately 100 jobs, highlighting its cyclical nature.
Industry Context
The upstream sector encompasses oil and natural gas extraction and certain mining activities, excluding refining, petrochemicals, and pipeline operations. In fiscal 2025, the Texas oil and natural gas industry employed over 495,500 workers, with an average annual wage of $133,095, significantly higher than the state’s average private-sector salary. This substantial contribution emphasizes the sector’s importance to the local and state economy.
Market Outlook
Despite lower commodity prices in the latter half of 2025, Texas producers maintained strong output. U.S. crude oil production reached a record average of about 13.6 million barrels per day, with Texas contributing approximately 42%–43% of total volumes. Natural gas production in the state also reached record levels, indicating the sector’s resilience and ongoing importance to the state’s economy.
Key Features of the Texas Upstream Sector in December 2025
| Feature | Details |
|---|---|
| Total Upstream Employment | 203,400 jobs |
| Oil and Natural Gas Extraction Jobs | 70,200 jobs (+500) |
| Support Activities Jobs | 133,200 jobs (+1,500) |
| Average Annual Wage in Fiscal 2025 | $133,095 |
| Texas Contribution to U.S. Crude Oil Production in 2025 | Approximately 42%–43% |
Frequently Asked Questions (FAQ)
What is the Texas upstream sector?
The Texas upstream sector includes oil and natural gas extraction and certain mining activities, excluding refining, petrochemicals, and pipeline operations.
How many jobs were added in the Texas upstream sector in December 2025?
The sector added 2,000 jobs in December 2025, reaching a total of 203,400 positions.
What factors contributed to the employment fluctuations in the Texas upstream sector during 2025?
Fluctuations were due to rig count reductions, service-sector adjustments, and ongoing efficiency gains across the upstream industry.
What was the average annual wage for workers in the Texas oil and natural gas industry in fiscal 2025?
The average annual wage was $133,095, significantly higher than the state’s average private-sector salary.
How did Texas oil and natural gas production perform in 2025?
Despite lower commodity prices in the latter half of 2025, Texas producers maintained strong output, with U.S. crude oil production reaching a record average of about 13.6 million barrels per day, and Texas contributing approximately 42%–43% of total volumes.
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Author: STAFF HERE AUSTIN WRITER
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