Texas Oil & Gas Upstream Sector Adds 400 Jobs Between July and August 2026

Texas Border Business

Texas Independent Producers And Royalty Owners Association (TIPRO)

AUSTIN, Texas – Citing the latest Current Employment Statistics (CES) report from the U.S. Bureau of Labor Statistics (BLS), the Texas Independent Producers and Royalty Owners Association (TIPRO) highlighted new employment figures for the Texas oil and natural gas industry. According to TIPRO, employment in the Texas upstream sector increased by 400 jobs between July and August 2026, reflecting a decline of 100 jobs in oil and natural gas extraction (62,600) and an increase of 500 service sector jobs (133,300), subject to revisions.

Texas upstream employment ended August higher than where it started the year after two consecutive monthly declines, explains TIPRO. Employment rose from 192,400 jobs in January to a peak of 197,300 in May, says TIPRO, then declined in June and July to a revised 195,500 before increasing to 195,900 in August. That August total is 1,400 jobs, or 0.7 percent, below the May peak. Measured against the January starting point, upstream employment is up 3,500 jobs, or 1.8 percent, for the year. That net gain reflects a much larger increase of 5,800 jobs from a February low of 191,500 to the May peak of 197,300, following an early-year decline of 900 jobs in February. The June and July losses of 300 and 1,500 jobs, respectively, subsequently gave back a portion of that spring gain. August’s 400-job increase restored part of the July decline and ended the first back-to-back monthly losses of the year. July figures, initially reported as a 1,200-job decrease to 195,800, have since been revised and now reflect a 1,500-job decline from June to 195,500. Month-to-month fluctuation of this kind is common in upstream employment data over the course of a year, adds TIPRO, and this period has been no exception, with declines in three of the seven monthly changes recorded so far, including the 900-job drop in February and the 1,500-job drop in July, the steepest monthly decline of the year.

TIPRO’s workforce analysis continues to indicate strong job postings for the Texas oil and natural gas industry. According to the association, there were 11,641 unique industry job postings in Texas during the month of August, and 4,837 new job postings added during the month. In comparison, the state of Pennsylvania had 3,326 unique job postings in August, followed by California (3,232), Ohio (2,775) and New York (2,350). TIPRO reported a total of 68,377 unique job postings nationwide during the month of August within the oil and natural gas industry, including 25,470 new postings.

Among the 19 specific industry sectors TIPRO uses to define the Texas oil and natural gas industry, Support Activities for Oil and Gas Operations led in the ranking for unique job listings in August with 2,648 postings, followed by Gasoline Stations with Convenience Stores (1,989), Petroleum Refineries (960), and Pipeline Transportation of Natural Gas (764). The leading four cities by total unique oil and natural gas job postings were Houston (3,014), Midland (824), Odessa (525), and Dallas (513), said TIPRO.

The top four companies ranked by unique job postings in August were Loves (677), Murphy USA (360), ExxonMobil (320), and Baker Hughes (318), according to the association. Of the top ten companies listed by unique job postings in August, five companies were in the services sector, two gasoline stations with convenience stores, one in the midstream sector, one refining company, and one fully integrated oil and natural gas company. Top posted industry occupations for August included heavy and tractor-trailer truck drivers (613), cashiers (348), maintenance and repair workers general (345), and first-line supervisors of retail sales workers (219).

Top qualifications for unique job postings in August included valid driver’s license (2,306), commercial driver’s license (CDL) (386), and transportation worker identification credential (TWIC) card (200). TIPRO reports that 38 percent of unique job postings required a bachelor’s degree, 32 percent required a high school diploma or GED, and 31 percent had no education requirement listed. There were 2,831 advertised salary observations (24 percent of the 11,641 matching postings) with a median salary of $58,500. The highest percentage of advertised salaries (31 percent) were in the $84,000 to $500,000 range.

State tax revenue from oil and natural gas production continues an upward trend, according to data from the Texas Comptroller of Public Accounts analyzed by TIPRO. In August 2026, energy producers in Texas paid $526 million in oil production taxes, an 18 percent increase compared to August 2025. Texas producers also paid $202 million in natural gas production taxes last month, up 4 percent from August 2025. This August oil and gas tax revenue growth follows strong collections from oil and gas production taxes this summer. In July, oil production taxes brought in $567 million, up 31 percent year-over-year, while natural gas tax receipts reached $241 million. In June, oil production tax collections hit $736 million, the largest monthly collections on record, while natural gas production tax revenue was $212 million for the month.

The Texas comptroller’s office also recently released tax collection totals for the state’s Fiscal Year 2026, which ended August 31. For the full fiscal year, oil production tax revenue totaled $5.88 billion, more than 9.2 percent over Fiscal Year 2025. Conversely, natural gas production tax receipts in Fiscal 2026 altogether declined by 1.8 percent from Fiscal Year 2025, totaling $2.43 billion. Tax dollars paid by the oil and natural gas industry remain a vital funding source used to help pay for Texas roads, public schools, emergency responders, and other essential public services. 

In addition to state tax figures for the oil and gas industry, TIPRO also highlights the latest federal production forecasts showing record-setting domestic output. The U.S. Energy Information Administration’s (EIA) September 2026 Short-Term Energy Outlook projects U.S. crude oil production will average a record 13.8 million barrels per day (b/d) in 2026, surpassing the previous high of 13.7 million b/d set in 2025. The EIA attributes growth in oil production to primarily come from higher drilling activity in the Permian Basin of Texas and New Mexico, where oil output is expected to average 6.8 million b/d this year, representing a 3 percent increase over 2025.

Domestic natural gas output is also projected to reach historic highs this year. The EIA’s September outlook forecasts U.S. marketed natural gas production to average 122.9 billion cubic feet per day (Bcf/d) in 2026, a 4.5 Bcf/d increase over 2025, before production is expected to jump another 4.6 Bcf/d in 2027 to reach 127.6 Bcf/d. The Permian Basin and Haynesville regions together account for more than 70 percent of this production growth, providing critical supply to meet growing domestic demand and support storage additions.

Information source: Texas Independent Producers And Royalty Owners Association (TIPRO)