The Texas state flag flies above workers at Latshaw oil drilling rig #43 in the Permian Basin in Odessa, Texas, Wednesday, Oct. 13, 2021. More than 5,000 new well-drilling permits were issued in the Texas portion of the Permian in 2021, as demand for fossil fuels rebounded after a COVID-era slump in demand. Numbers from the first quarter of 2022 show the industry on pace to eclipse that figure.
The oil and gas extraction and exploration sector added more than 1,500 jobs in December, with total employment reaching nearly 195,600, according to seasonally adjusted data released Friday by the Texas Alliance of Energy Producers. Employment in the upstream oil and gas sector, as it's called, jumped nearly 13 percent year-over-year from around 173,500 the year earlier.
"It is encouraging to see upstream employment end the year on a positive note," Texas Oil and Gas Association President Todd Staples said in a statement,"particularly as jobs seem to be contracting in the high-tech industry." The rising numbers reflect steady investment in production by the energy industry despite a darkening economic backdrop. Still, the relatively low number of oil and gas jobs reflects a complicated, changing landscape where producers continue to face shortages and new challenges related to the energy transition as rapidly evolving technology enables them to pull oil from the ground more efficiently.
The oil and gas extraction and exploration sector has grown steadily since the industry’s job numbers hit lows in September 2020, adding 54,200 jobs in the more than two years that have elapsed, according to the Texas Oil and Gas Association. These jobs are among the highest-paying in Texas, the association said, noting an average annual salary of around $109,000.