Upstream oil companies ramped up hiring in February, the Texas Independent Producers and Royalty Owners Association (TIPRO) said on Friday, marking the second straight month of growth.
WHY IT’S IMPORTANT
Hiring in the upstream sector, which includes activities related to drilling and producing oil, can serve as an indicator of the health of the oil and gas industry. Companies bringing on more employees could imply more drilling to come.
TIPRO represents nearly 3,000 independent producers and royalty owners across 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
Texas upstream employment rose by 1,900 positions in February to 205,400, according to TIPRO.
Jobs in oilfield services jumped by 2,500 positions, while jobs in oil and gas extraction fell by 600.
The U.S. rig count is down by 31 from a year ago to 593, according to data from oilfield services firm Baker Hughes.
CONTEXT
The U.S. oil industry is grappling with uncertainty surrounding the new administration’s trade and tariff policy, which may undermine President Donald Trump’s bid to encourage more oil and gas drilling to lower prices at the pump for consumers.
KEY QUOTE
“We will continue to engage in energy policy discussions at the state and federal level to support increasing levels of energy demand here and abroad,” said Ed Longanecker, president of TIPRO.
(Reporting by Georgina McCartney in Houston Editing by Marguerita Choy)