Texas Upstream Oil and Gas Employment Holds Steady in 2025
Texas upstream oil and natural gas employment remained essentially flat throughout 2025, even as producers continued to deliver strong output in the face of volatile commodity prices, inflationary pressures, and ongoing regulatory uncertainty, according to new data released by the Texas Workforce Commission.
Through November 2025, upstream oil and gas employment in Texas totaled 201,200 jobs. While the sector experienced a month-over-month decline of 3,500 jobs in November compared with October, the year-to-date picture showed little overall change. Employment posted a net gain of 300 direct upstream jobs over the first eleven months of the year.
On a year-over-year basis, upstream employment edged slightly higher, increasing by 100 jobs, or 0.1 percent, compared with November 2024. Industry leaders said the stability highlights the sector’s ability to sustain production growth without significant workforce expansion, reflecting efficiency gains and capital discipline.
“Reaching new production highs in multiple categories with employment essentially remaining steady is absolutely remarkable,” said Todd Staples, president of the Texas Oil & Gas Association. “Navigating these volatile circumstances is a vivid reminder: growth is not guaranteed.”
Staples added that the industry’s performance underscores the importance of policy stability and infrastructure investment. “This resilience demonstrated by increased energy output in 2025 depends on policies that support infrastructure development and market flexibility so the oil and natural gas industry can adapt to uncertainty and continue delivering the affordable, reliable energy that powers our modern way of life,” he said.
Post-Pandemic Recovery Remains Strong
The longer-term employment trend remains positive. Since the COVID-era low point reached in September 2020, Texas upstream oil and natural gas employment has increased by more than 44,000 jobs, representing a 28 percent gain. That rebound highlights the sector’s recovery from historic shutdowns and demand destruction during the pandemic.
Industry analysts note that while hiring has slowed compared to the rapid rebound years immediately following 2020, producers have continued to prioritize productivity, automation, and capital efficiency while maintaining high output levels.
Defining Upstream Employment
Upstream employment includes oil and natural gas extraction along with support activities such as drilling services and field operations. It does not include downstream segments like refining, petrochemicals, pipeline transportation, or fuels distribution.
When combined with other oil and gas industry sectors, overall employment ticked slightly higher in 2025. Average employment across the broader industry rose from 492,019 jobs in 2024 to 495,501 jobs in 2025, reflecting just under a 1 percent increase.
Economic Impact Across Texas
Beyond direct employment, the oil and natural gas industry continues to play a major role in the Texas economy. The sector represents approximately 31 percent of the state’s private-sector economy and paid an estimated $74 million per day last year in state and local taxes and royalties.
Those revenues support a wide range of public priorities, including state highway construction, the Texas savings account, universities, public schools, and first responders, reinforcing the industry’s fiscal importance even during periods of employment stability.