By Georgina McCartney
HOUSTON (Reuters) – Upstream oil companies cut hiring in November, the Texas Independent Producers and Royalty Owners Association (TIPRO) said on Friday, ending five straight months of job growth.
WHY IT’S IMPORTANT
Hiring people 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 workers could mean more drilling.
TIPRO represents nearly 3,000 independent producers and royalty owners throughout Texas, home to the fertile Permian Basin, which accounts for just under half of total U.S. crude oil production, according to the Energy Information Administration.
BY THE NUMBERS
Direct employment in the upstream sector in Texas fell by 1,500 positions to 194,400 last month compared to October employment figures, according to TIPRO.
The number of oil and gas extraction jobs fell by 600, while the number of oilfield service jobs fell by 900 jobs.
The number of drilling rigs in the US fell by 34 from a year ago to 589, according to data from oilfield services company Baker Hughes.
CONTEXT
The US oil industry is preparing for a new administration next year, with newly elected President Donald Trump and Republicans expected to roll back regulations and encourage more oil and gas drilling.
IMPORTANT QUOTE
“…TIPRO looks forward to working with the new administration to unleash the true potential of the U.S. oil and gas industry and will advocate on behalf of our members accordingly,” said Ed Longanecker, president of TIPRO.
(Reporting by Georgina McCartney in Houston)
