Source: Practical Engineering Services
Texas solidifies its role as the cornerstone of U.S. energy security, with rising jobs, wages, and production marking a new era of domestic self-sufficiency.
Amid global concerns over economic deceleration, fluctuating energy prices, and geopolitical uncertainty, Texas stands out as a center of strength and continuity in the oil and gas sector. Recent data from the Texas Workforce Commission showcases a new and compelling narrative about the industry.
Rather than contracting, the Texas energy industry is expanding, with employment and wages both on the rise. In the fourth quarter of 2024, oil and gas jobs across the upstream, midstream, and downstream segments increased by 1.6% year-over-year, while average wages rose by 7.6%. These gains reflect robust industrial activity and continued investment in infrastructure and energy delivery, particularly in areas like pipeline construction and natural gas extraction.
Texas’ leadership in domestic energy production remains unmatched. Between February 2024 and February 2025, the state contributed 96% of the national growth in crude oil and natural gas liquids (NGL) output. This performance led to a historic national achievement: for the first time, U.S. production of crude oil and NGLs equaled total domestic petroleum product consumption. This milestone notes a significant shift in the nation’s energy landscape, demonstrating the technical and operational capability to meet all petroleum liquid fuel demand through domestic production alone, without relying on biofuels or accounting adjustments.
“It is encouraging to see the Q4 2024 TWC data finalized and showing a robust year-end finish for the oil and natural gas industry. A 1.6% increase in jobs and a 7.6% increase in wages are significant to the Texas economy as well as the families enjoying the benefits of these good jobs. We are hopeful the global economy gets back on track and America can continue to export much-needed oil and natural gas around the world, with Texas leading the way,” said TXOGA President Todd Staples.
The benefits of this production surge are extending well beyond extraction. Downstream industries dependent on NGLs—such as petrochemicals, fertilizers, asphalt, and lubricants—are experiencing notable job growth. For example, fertilizer manufacturing employment rose by nearly 14% year-over-year, driven by increased feedstock availability. These developments highlight the integral role of the upstream sector in stimulating economic activity throughout the energy value chain, supporting high-paying, technically skilled jobs that contribute significantly to the Texas economy.
The implications of these trends reach into national policy. With U.S. production now capable of satisfying total domestic consumption, energy security discussions can evolve. Rather than focusing narrowly on import and export balances, policymakers have the opportunity to reassess infrastructure needs, refining capacity, and strategic reserves based on self-sufficiency. Texas, with its scale, efficiency, and established energy ecosystem, is central to this new framework, serving as the foundation for a more resilient national energy strategy.
Rig productivity in Texas continues to improve across all major basins, including the Permian, Eagle Ford, and Haynesville. These gains reflect ongoing innovation, capital efficiency, and operational refinement within the industry. Even in a lower-price environment, such productivity increases demonstrate that Texas oil and gas operations are not only sustainable but also poised for continued growth in a highly competitive global market.
The data presents a clear picture: Texas is not just holding steady in uncertain times; it is setting the pace for U.S. energy development. With a combination of resource abundance, technological advancement, and an enabling business environment, the Texas oil and gas industry continues to drive job creation, wage growth, and energy security. As the global landscape evolves, Texas remains a vital, forward-looking force in ensuring that American energy remains reliable, competitive, and secure.
