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.
Texas experienced a notable decline in jobs within its upstream oil and gas sector during July 2025, highlighting ongoing challenges in the industry as crude oil prices remain stagnant. According to the Texas Workforce Commission, the sector saw nearly 3,000 job losses in June and July combined, indicating a potential downturn in an industry that had earlier shown signs of a slight recovery.
The upstream oil and gas sector in Texas reported a total of 205,200 jobs in July, which represents a decrease of 1,400 jobs from June. The decline was primarily attributed to significant job losses in the services sector, which accounted for 1,600 of the layoffs, despite a minor gain of 200 positions in oil and gas extraction. This overall trend reflects the tough economic landscape faced by producers since crude oil prices have fluctuated near break-even levels.
Rig counts, which serve as a crucial metric for gauging the health of the oil and gas sector, have also declined sharply from 280 at the beginning of the year to 253 by the end of July. This reduction in rig activity is expected to exacerbate job losses in the months ahead, as companies respond to lower profitability and demand for oil production.
The recent job losses are significantly lower than those experienced during the peak of the COVID-19 pandemic, which resulted in the loss of 63,000 jobs in the sector. However, they still raise concerns for the future viability of employment within the Texas oil and gas industry. Industry experts point out that if crude prices continue to slip further, additional job cuts may ensue.
Two notable companies, Chevron and Encino Energy, have already announced layoffs following corporate acquisitions. Chevron laid off 575 employees after acquiring Hess, and Encino Energy cut 121 jobs after being purchased by EOG Resources. Additionally, the Texas upstream oil and natural gas workforce has been impacted by a trend towards outsourcing jobs to other countries, such as India and Indonesia, further complicating the employment landscape for Texas oil workers.
Despite these challenges, there are emerging signs of potential growth in some areas. Unique job postings in the Texas oil and natural gas sector increased from 8,457 in June to 8,853 in July, with 3,840 new postings reported compared to 3,533 in the prior month. This could indicate that while some companies are reducing workforce numbers, new opportunities are still emerging in the market.
The price of West Texas Intermediate (WTI) crude, a key benchmark, slipped to approximately $62.17 in May and has remained around $63 as of late August 2025. Experts monitoring the sector suggest that ongoing fluctuations in crude oil prices, along with global supply and demand dynamics, will play a central role in determining the future employment landscape. The Texas Independent Producers and Royalty Owners Association (TIPRO) has noted marked instability in monthly employment figures, driven by prevailing market conditions.
In a somewhat positive development amidst the layoffs, ExxonMobil revealed plans to bring hundreds of new jobs to Texas through a major reconfiguration project at its Baytown campus. This initiative aims to diversify production offerings and may provide a counterbalance to the job losses occurring across the sector.
Overall, the Texas oil and gas industry faces a challenging period characterized by continued consolidation, fluctuating prices, and declining rig counts. As producers adjust to these market conditions, experts recommend that upstream workers remain vigilant regarding the volatile price patterns and supply-demand dynamics that have historically had significant labor implications.
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 COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos 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 Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
