Texas oil and gas upstream jobs increase in February, says industry group

The Texas Independent Producers and Royalty Owners Association, or TIPRO, announced on Friday that upstream oil companies increased hiring in February. This is the second consecutive month of growth.

Why it's important

Hiring in upstream, which includes drilling and producing oil activities, can be an indicator of how the oil and gas sector is doing. More drilling could be expected if companies hire more staff.

TIPRO represents more than 3,000 independent producers in Texas. The Permian Basin is home to some of the most prolific crude oil production in the United States, which, according to Energy Information Administration, accounts for less than half the total U.S. crude oil production.

By the Numbers

TIPRO reports that Texas upstream employment increased by 1,900 jobs in February, to 205.400.

Oilfield services jobs grew by 2,500, while oil and gas extraction jobs fell by 600.

Baker Hughes, an oilfield services company, reported that the U.S. Rig Count is down 31 from last year to 593.

CONTEXT

The U.S. Oil Industry is struggling with the uncertainty of the new administration’s trade and tariff policies, which could undermine President Donald Trump’s efforts to encourage more drilling for oil and gas to lower the prices at the pumps for consumers.

KEY QUOTE

Ed Longanecker is the president of TIPRO. He said, "We will engage in energy policies discussions at both state and federal levels to support an increasing level of energy demand domestically and internationally."

(source: Reuters)