Upstream oil companies cut hiring in November, according to the Texas Association of Independent Producers and Royalty Owners (TIPRO), ending five straight months of job growth.
WHY IT IS IMPORTANT
Hiring in the upstream sector, which includes activities related to oil drilling and production, can serve as an indicator of the health of the oil and gas industry. Companies that hire more staff may be required to do more drilling.
TIPRO represents nearly 3,000 independent producers and royalty owners in Texas, home to the prolific Permian Basin, which accounts for just under half of total U.S. crude production, according to the Energy Information Administration.
BY THE NUMBERS
According to TIPRO, direct upstream employment in Texas fell last month by 1,500 positions to 194,400 positions compared to October's figures.
Jobs in oil and gas extraction declined by 600 positions, while oilfield services declined by 900 positions.
The number of drilling rigs in the United States fell by 34 from last year to 589, according to data from oilfield services company Baker Hughes.
CONTEXT
The U.S. oil industry is bracing for a new administration next year, with President-elect Donald Trump and Republicans expected to cut regulations and encourage more oil and gas drilling.
KEY QUOTE
“…TIPRO looks forward to working with the new administration to unlock the true potential of the U.S. oil and gas industry and will advocate accordingly on behalf of our members,” said Ed Longanecker, President of TIPRO.
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