Oil Industry Hiring Slows Down in November
The Texas Independent Producers and Royalty Owners Association (TIPRO) has revealed that upstream oil companies have halted their hiring spree in November, marking the end of a five-month streak of job growth. This development is significant because hiring trends in the upstream sector, which encompasses drilling and producing oil, can serve as a bellwether for the overall health of the oil and gas industry.
A Key Indicator of Industry Health
When companies hire more employees, it often signals an increase in drilling activities, which can have a ripple effect on the entire industry. As the representative of nearly 3,000 independent producers and royalty owners across Texas, TIPRO’s data provides valuable insights into the industry’s pulse.
The Permian Basin: A Crucial Player
Texas, home to the prolific Permian Basin, accounts for almost half of the total U.S. crude production, according to the Energy Information Administration. The Permian Basin’s performance has a significant impact on the national oil and gas landscape.
Job Numbers Take a Hit
Direct Texas upstream employment saw a decline of 1,500 positions in November, bringing the total to 194,400. Oil and gas extraction jobs fell by 600, while oilfield service hiring dropped by 900 positions. Meanwhile, the U.S. rig count has decreased by 34 compared to last year, standing at 589, according to data from oilfield services firm Baker Hughes.
A New Era for the Oil Industry
As the U.S. oil industry prepares for a new administration in 2023, expectations are high that President-elect Donald Trump and Republicans will roll back regulations and encourage more oil and gas drilling. This shift in policy could have far-reaching implications for the industry.
Industry Leaders Weigh In
“TIPRO looks forward to working with the new administration to unleash the true potential of the U.S. oil and gas industry and will advocate accordingly on behalf of our members,” said Ed Longanecker, president of TIPRO. As the industry navigates this new landscape, TIPRO’s advocacy will play a crucial role in shaping its future.
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