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.
Job Losses Hit Texas Oil and Gas Sector Amid Price Declines
In the heart of Texas, the oil and gas industry, a sector that has long been a cornerstone of the Lone Star State’s economy, is facing some tough times. Recent data points to a **slight decline in upstream oil and gas jobs** for July 2025, casting shadows over the industry even as some signs of resilience begin to emerge.
Declining Rig Counts Signal Trouble
To start, the rig count in Texas has taken a noticeable dip. It fell from 280 at the beginning of 2025 down to 253 by the end of July. This decline is more than just a number—it’s a clear indication that job losses may follow. After all, those rigs are essential to drilling operations and, when they diminish, so does the demand for workers in the sector.
Job Losses Piling Up
During June and July alone, nearly 3,000 upstream workers, or roughly 1.5% of the sector’s workforce, lost their jobs, as reported by the Texas Workforce Commission. The brunt of it came in June with around 1,500 positions1,400 jobs
The Current Employment Landscape
As of July 2025, Texas’s upstream oil and natural gas sectors have reported 205,200 jobs, a drop of 1,400 positions since June. Interestingly, while oil and gas extraction saw a small gain of 200 jobs, the services sector experienced a loss of 1,600 jobs
Job Postings on the Rise
The Price of Crude and Its Impacts
As for crude prices, they do not appear to be mirroring the optimism. The price of West Texas Intermediate crude dropped to about $62.17 in May and has hovered around $63 as of late August
Consolidations and Layoffs
In another unsettling development, Chevron recently laid off 575 employees following their acquisition of Hess, while Encino Energy let go of 121 workers after being taken over by EOG Resources. This trend towards consolidations complicates the employment outlook, casting a long shadow over job security in the sector.
Keeping an Eye on Global Factors
Workers and job seekers in the upstream oil and gas industry are being urged to keep a close watch on global crude oil prices and supply-demand dynamics. Historically, significant changes in labor availability are closely tied to these factors. With some companies outsourcing jobs to places like India and Indonesia, Texan oil workers find themselves facing tougher competition.
Looking Ahead with Hope
However, it’s not all doom and gloom. ExxonMobil is set to introduce hundreds of new jobs at its Baytown campus as part of a significant reconfiguration project aimed at diversifying production. This is a glimmer of hope amidst the turmoil and showcases that even in challenging times, new opportunities can emerge.
The Texas oil and gas industry is experiencing ongoing consolidation, with employment fluctuating sharply due to market conditions. As the labor landscape evolves, price patterns and weak rig counts are expected to play crucial roles in shaping future employment opportunities.
Deeper Dive: News & Info About This Topic
- KTRH: Texas Oil Sheds 3,000 Jobs
- Houston Chronicle: Oil and Gas Worker Layoffs
- Chron: ExxonMobil Baytown Plant Jobs
- Wikipedia: Oil Industry
- Google Search: Texas Oil Jobs 2025
Author: STAFF HERE DALLAS WRITER
DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
