Texas upstream employment saw a dip in July, with a loss of 1,200 jobs reported in the oil and natural gas sectors. This follows a period of decline after a spring hiring peak, marking the first time this year the industry has recorded back-to-back monthly drops. While these figures indicate a temporary cooling, the industry remains well above the employment levels seen at the start of 2026.
Despite the recent pullback in headcount, data from the Texas Independent Producers and Royalty Owners Association shows that demand for talent stays high. There were nearly 11,000 unique job postings within the industry across the state during July. Companies continue to seek workers for roles ranging from heavy truck driving to project management and specialized support services.
State-level tax revenue from production highlights the financial strength of the sector. Energy producers paid millions in production taxes throughout the summer, with tax collections for oil and natural gas showing significant growth over 2025 figures. This indicates that production output remains strong across the state.
National projections support a positive outlook for the long term. The Energy Information Administration expects U.S. natural gas production to set new records in 2026, driven largely by activities in the Permian Basin. Crude oil production is also expected to climb further as operators respond to global energy needs.
Industry leadership notes that while Texas producers power the national economy, they face challenges. Tariffs on materials, federal permitting delays, and the need for more infrastructure continue to be key concerns. Producers remain focused on these issues to ensure they can meet rising global demand and support long-term economic growth.