The following was written by Dean Foreman, Ph.D., Chief Economist at the Texas Oil & Gas Association (TXOGA):
Texas’ oil and natural gas industry employment and wages have continued to grow, according to new data recently released by the Texas Workforce Commission and U.S. Census Bureau covering the Q3 2024. These are the latest data reflecting the entire energy value chain.
The industry’s direct employment rose to 498,238 jobs in Q3 2024, a 2.3% year-over-year (y/y) increase. Workers in Texas’ oil and natural gas industry earned $14.5 billion in wages during the quarter, setting a new record for the period since data collection began in 1990. Industry wages rose by 8.2% y/y—more than 3.5 times faster than employment growth—indicating escalation that reflected companies competing to attract and retain skilled workers.
Within the industry, several subsectors set new record highs for employment, thanks largely to Texas’ expanded role as a global energy exporter:
- Pipeline transportation: 23,137 jobs
- Natural gas extraction: 18,384 jobs
- Plastics material and resin manufacturing: 11,853 jobs
- Other basic organic chemical manufacturing: 9,020 jobs
Strong gains were also recorded in oil and natural gas pipeline construction, which grew by 12.5% year-over-year to 60,740 jobs, and industrial sand mining for hydraulic fracturing, which rose by 35.0% to 4,686 jobs.
However, not all sectors experienced growth. Employment in oil and natural gas machinery and equipment manufacturing fell by 7.4% year-over-year to 55,110 jobs, while asphalt materials manufacturing saw a 4.6% decrease, bringing employment down to 2,774 jobs.
Geographic shifts. Regional employment gains were led by Harris (2,462 jobs), Jefferson (2,380 jobs), Brazoria (1,552 jobs), Montgomery (1,284 jobs), and Midland (847 jobs) counties. Meanwhile, employment decreased in Dallas (1,454 jobs), Bexar (415 jobs), and Orange (402 jobs) counties.
Overall, the data affirm the continued growth and competitiveness of Texas’ oil and natural gas industry. Sustained global demand and infrastructure investments have furthered the Lone Star State’s role in global markets—and provide a solid point of departure entering 2025.
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Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.