Newly released data from the Texas Workforce Commission indicates upstream oil and gas employment fell again in June, with a decline of 2,000 jobs compared to May.
That’s what industry body the Texas Oil & Gas Association (TXOGA) said in a statement sent to Rigzone, noting that “this marks five out of six months this calendar year that the job count has dropped”.
“Operational efficiencies are driving strong production with fewer rigs, which can translate to declining industry job numbers,” TXOGA President Todd Staples said in the statement.
“Baker Hughes data indicate the national rig count has declined 14 percent from 687 in June 2023 to 588 active rigs in June 2024. By contrast, the U.S. Energy Information Administration estimates rig productivity gains in excess of 20 percent year over year across major shale basins, with many companies maintaining or increasing production despite running fewer rigs,” he added.
“These productivity gains result in big benefits for consumers as prices have remained relatively stable despite geopolitical unrest,” he continued.
In the statement, Staples noted that U.S. estimated crude oil production for the week ended July 12, 2024, indicated 13.3 million barrels per day. He described this as “a big jump from 12.3 million barrels per day for the same week last year”. Texas estimated crude oil production in June 2024 was 5.6 million barrels per day, Staples said in the statement, adding that this was a 1.9 percent year over year increase.
Estimated U.S. natural gas marketed production for the week ended July 17, 2024, was 115.1 billion cubic feet per day, Staples highlighted in the statement. In the same week last year, this stood at 114.3 billion cubic feet per day, he outlined. Texas estimated natural gas marketed production in June 2024 was 32.2 billion cubic feet per day, he noted, adding that this was an increase of 1.7 percent year on year.
“Clearly, oil and natural gas companies are delivering more energy with greater efficiency and lower emissions than ever before,” Staples said in the statement.
“To maintain our energy leadership, we need state and federal policies that promote continued infrastructure development, streamline permitting, and recognize companies have choices where they can invest their dollars,” he added.
“Smart, predictable, and science-based policies will ensure Texas continues to be the nation’s energy leader,” Staples went on to state.
In a statement sent to Rigzone last month, TXOGA highlighted that, according to a monthly energy economic analysis by TXOGA Chief Economist Dean Foreman, “Texas’ production of oil, natural gas, and natural gas liquids (NGLs), refinery activity and exports have achieved new record highs.”
“By TXOGA’s estimates for May 2024, Texas produced a record-high 5.7 million barrels per day of crude oil, plus 32.5 billion cubic feet per day of natural gas marketed production and 3.5 million barrels per day of NGLs,” it added.
In that statement, Staples said, “these new records are a testament to Texas’ role as a national and global energy leader”.
“Amidst growing global instability and energy demand that is expected to nearly double by 2050, oil and natural gas continue to serve as the bedrock of our energy mix, providing affordable reliable energy to meet our state, nation, and the world’s needs,” he added.
In the statement, Foreman said, “Texas’ record-setting performance has continued so far this year on the heels of remarkable productivity gains, where for example rig productivity in May rose by more than 20 percent year over year by EIA estimates”.
“As a result, Texas has continued to gain market share amid U.S. oil and natural gas production through the first half of 2024. U.S. energy security increasingly depends on Texas, and Texas has stepped up like none other,” he added.
TXOGA describes itself as a statewide trade association representing every facet of the Texas oil and gas industry including small independents and major producers. Collectively, the membership of TXOGA produces approximately 90 percent of Texas’ crude oil and natural gas and operates the vast majority of the state’s refineries and pipelines, TXOGA’s site states.
In fiscal year 2023, the Texas oil and natural gas industry supported over 480,000 direct jobs and paid $26.3 billion in state and local taxes and state royalties, the site notes.
Source: www.rigzone.com
