News Summary
The Texas oil and gas industry faces significant challenges as job losses increase amid declining rig counts and fluctuating crude prices. Nearly 3,000 upstream workers have lost their jobs recently, raising concerns about future employment. Despite some growth in job postings, industry experts warn that ongoing price declines may lead to further job cuts. Consolidation trends add to the uncertainty in job security. However, there are glimmers of hope, such as new job announcements from ExxonMobil, suggesting potential opportunities for workers.
Job Losses Hit Texas Oil and Gas Sector Amid Price Declines
Texas is experiencing a downturn in its oil and gas industry, with notable job losses reported recently. According to the latest figures, the upstream oil and gas sector in Texas witnessed a decrease in jobs for July 2025. This downturn is attributed to a decline in drilling rig counts and persistent low crude oil prices, leading to concerns about the future stability of the workforce in the industry.
Declining Rig Counts Signal Trouble
The rig count in Texas has dropped significantly, falling from 280 at the beginning of 2025 to 253 by the end of July. This decline indicates not only a reduction in drilling capacity but also suggests potential job losses in the near future, as fewer rigs translate to a diminished need for labor.
Job Losses Piling Up
Recent reports from the Texas Workforce Commission highlight that nearly 3,000 upstream workers, or about 1.5% of the sector’s workforce, lost their jobs between June and July 2025. June alone saw approximately 1,500 positions cut, followed by another 1,400 job losses in July. This marks a setback after a brief period of job growth earlier in the year, suggesting a turbulent trajectory ahead for employment in the sector.
The Current Employment Landscape
By July 2025, Texas’s upstream oil and natural gas industries reported a total of 205,200 jobs, which is a decrease of 1,400 positions from June. Interestingly, oil and gas extraction saw a modest increase of 200 jobs, while the services sector experienced a significant loss of 1,600 jobs. This dual movement hints at a shifting demand for different types of labor within the industry.
Job Postings on the Rise
Despite the losses, there is a silver lining as the number of unique job postings in Texas’s oil and natural gas sector has risen. From 8,457 in June, the postings grew to 8,853 in July, reflecting an increase of over 300 new openings. This growing number of postings may indicate that, while many current positions are being eliminated, new roles are emerging for job seekers.
The Price of Crude and Its Impacts
Crude oil prices have not been favorable, with West Texas Intermediate crude declining to approximately $62.17 in May and stabilizing around $63 as of late August. Experts warn that continued price drops could lead to further job cuts within the sector, compounding the existing issues faced by Texas oil and gas workers.
Consolidations and Layoffs
The sector is also facing unsettling news regarding consolidations. Recently, Chevron announced the layoff of 575 employees following its acquisition of Hess, and Encino Energy let go of 121 workers after being acquired by EOG Resources. Such consolidations are raising concerns about job security and the overall job landscape in the oil and gas industry.
Keeping an Eye on Global Factors
Industry experts are advising workers and job seekers to monitor global crude oil prices and the dynamics of supply and demand closely. Historically, job availability in the oil sector has been closely tied to these global factors. Furthermore, competition is increasing as some companies outsource jobs to countries like India and Indonesia, creating additional challenges for Texan oil workers.
Looking Ahead with Hope
In the midst of these challenges, there is cautious optimism. ExxonMobil plans to create hundreds of new jobs at its Baytown campus as part of a restructuring project aimed at diversifying production. This initiative serves as a potential beacon of hope, suggesting that despite current difficulties, new opportunities may arise for workers in the sector.
Overall, the Texas oil and gas industry is navigating through ongoing challenges, including job losses induced by market fluctuations and decreasing rig counts. The evolving landscape of employment opportunities appears to be heavily influenced by crude oil prices and other economic factors, requiring vigilance from those within and seeking to enter the industry.
Deeper Dive: News & Info About This Topic
- KTRH: Texas Oil Sheds 3,000 Jobs
- Houston Chronicle: Oil and Gas Worker Layoffs
- Chron: ExxonMobil Baytown Plant Jobs
- Wikipedia: Oil Industry
- Google Search: Texas Oil Jobs 2025
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
