September 2, 2025

Job Losses Hit Texas Oil and Gas Sector Amid Price Declines

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.

Texas experienced a decline in upstream oil and gas jobs throughout July 2025, reflecting ongoing challenges in the energy sector amidst fluctuating crude oil prices. Job losses in the industry were significant, with nearly 3,000 upstream workers losing their positions over June and July alone, according to the Texas Workforce Commission. This decrease is part of a broader trend as the market grapples with supply and demand imbalances, and global oil stocks remain abundant.

The total upstream oil and natural gas employment in Texas for July 2025 was recorded at 205,200 jobs, marking a drop of 1,400 from June. Notably, the job losses included approximately 1,600 positions in the services sector, despite a modest gain of 200 in oil and gas extraction. The rig count in Texas fell from 280 at the start of the year to 253 by the month’s end, leading industry experts to predict further job cuts in the months ahead.

In the wake of these changes, significant layoffs have occurred. Chevron announced it would lay off 575 employees following its acquisition of Hess in July, while Encino Energy cut 121 jobs after being absorbed by EOG Resources. These recent announcements underline the continued consolidation in the Texas oil and gas job market, where several companies are reducing their workforce amidst mergers and acquisitions.

The job losses were concentrated in two months, with about 1,500 upstream jobs lost in June and another 1,400 in July. Although these numbers are not as severe as the 63,000 layoffs experienced during the COVID-19 pandemic, the drop reflects potential vulnerabilities for the sector as crude oil prices struggle to stabilize. In May, the price of West Texas Intermediate crude oil dropped to $62.17 and hovered around $63 as of late August 2025.

Moreover, the Texas oil and natural gas industry saw a rise in unique job postings, increasing from 8,457 in June to 8,853 in July, with new postings rising to 3,840 from 3,533 in the previous month. While this indicates some demand for labor, experts emphasize that workers in the upstream sector need to remain vigilant about fluctuations in crude oil prices and overall market dynamics, as significant layoffs historically align closely with these factors.

Factors influencing future employment levels in the Texas oil and gas industry include price patterns that are trending below 2024 levels and persistently weak rig counts. Industry expert Karr Ingham points out that current job losses align with potential trends if crude prices continue downward. This situation serves as a reminder of the critical connection between market conditions and employment in the energy sector.

Adding to these complexities, the outsourcing of jobs to countries like India and Indonesia is increasingly impacting Texas oil workers, suggesting that not only local economic factors but also global labor dynamics may affect the local job market.

Despite these setbacks, there are indications of future job creation. ExxonMobil announced plans to bring hundreds of new jobs to Texas as part of a major reconfiguration initiative at its Baytown campus, aiming to diversify its production offerings. This potential growth stands in contrast to the ongoing layoffs and overall job decline in the sector.

The Texas Independent Producers and Royalty Owners Association (TIPRO) has pointed out notable fluctuations in monthly employment figures, largely attributable to evolving market conditions. As the upstream oil and gas workforce continues to navigate this precarious landscape, experts call for ongoing monitoring of the sector’s vital indicators to better understand job security and economic stability moving forward.

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Author: STAFF HERE GEORGETOWN

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