American Oil and Gas Reporter - June 2018 - 121

2018, showing a net increase of 702 jobs
in the upstream sector compared with
2017, for a total of 205,788 jobs, subject
to revisions.
In Texas, the oil and gas industry supported 325,439 direct jobs in 2017. The
report notes Oklahoma's industry showed
an increase of 2,876 jobs, for a total of
61,562 jobs, and North Dakota's oil field
employment jumped 2,799 jobs, to a total
of 18,781 in that time frame.
According to the Dallas Federal Reserve, March marked the 17th consecutive
month of growth in support activities employment on a percentage basis, and the
sixth consecutive month of expansion for
oil and gas extraction in the state. TIPRO
points out U.S. Census Bureau data that
indicate 21 percent of these upstream positions in Texas were held by women.
Continuing improvements and efficiencies gained in exploration and production methods during the industry downturn have helped increase crude oil production to historic levels, TIPRO recounts.
Daily production officially reached 10.066
million barrels of oil in 2017, exceeding
the record U.S. operators set in the 1970s.
The association adds that independent oil
and gas producers, collectively responsible
for as much as 95 percent of the wells
drilled in the United States, continue to
lead the industry in this growth.
"Our state's independent oil and gas
producers have proven they are some of
the most resilient in the world, driving
Texas energy production to all-time highs
and launching the United States to the
forefront of global oil production," applauds
Texas Railroad Commission Chairwoman
Christi Craddick. "From a regulatory
standpoint, I am proud to say that we
have developed an environment that allows
our state's energy industry to thrive, which
translates to significant revenue for state
coffers and high-quality jobs for Texans."
Texas Production
Total production in Texas in 2017 included 1.27 billion barrels of oil, an increase of 105 million barrels over 2016's
output, and total natural gas production
of 8.0 trillion cubic feet, compared with
8.2 Tcf from the previous year, the TIPRO
report states.
"In Texas, the Permian Basin alone
holds between 70 billion and 700 billion
barrels of oil equivalent, followed by the
Eagle Ford Shale in South Texas with 15
billion-25 billion boe," says TIPRO Chairman Allen Gilmer. "At $50 oil, the value
of these vast reserves ranges between
$3.85 trillion and $36.00 trillion. This
equates to $400 billion in severance and
ad valorem taxes alone that would be
paid to the state of Texas using conserva-

tive estimates, bestowing wealth greater
than any political entity on the planet."
Collectively, Texas oil and gas companies paid $11.0 billion in royalty payments and state and local taxes in fiscal
year 2017, $1.6 billion more than in
2016, the report describes. Additionally,
the state is home to 2.5 million of the
12.5 million mineral owners in the United
States, with royalties generating income
for nearly 600,000 Texas families.
"Despite the volatility in pricing and
markets just a few years back, the industry
responded with true Texas grit, unleashing
technology to improve efficiency and
production. I look forward to continuing
to work together to ensure that Texas remains the jobs, energy and economic engine of America," says Texas Governor
Greg Abbott.
Certain areas of the state are experiencing more momentum than others with
improving market conditions, TIPRO acknowledges. With the prolific Permian
Basin driving much of the increased employment and production activity in Texas,
the Midland and Odessa Metropolitan
Statistical Areas reported the most significant employment growth in the first
quarter of 2018, with a net increase of
1,768 upstream jobs. The San AntonioNew Braunfels MSA posted a net increase
of 532 upstream jobs in those three
months, and the Dallas-Fort Worth-Arlington MSA reported a slight net increase
of 29 jobs. Additionally, the Corpus
Christi MSA saw 8,240 direct oil and
gas jobs in the first quarter of 2018, including 3,299 upstream jobs and 2,662
jobs in the petroleum refineries sector.
"The Texas oil and natural gas industry
is poised for continued growth, but likely
will face future challenges from a workforce
standpoint," observes TIPRO President Ed
Longanecker. "Continued innovation and
operational efficiencies gained during the
downturn allowed operators to manage
increasing levels of exploration and production activities even with fewer personnel,
but employers in various segments of the
industry already are beginning to encounter
a shortage of available talent."
There are thousands of open positions
in Texas in the support activities for oil
and gas operations and drilling wells sectors
alone. TIPRO says those fast-growing industry segments need heavy and tractor
trailer truck drivers, bus and truck mechanics
and diesel engine specialists, maintenance
and repair workers, computer systems analysts, roustabouts, mechanical engineers,
software developers, and petroleum engineers, to name just a few of the openings.
"While the state may never reach 2014
levels of industry employment, and certain
geographic areas of the state are slower

to recover with improving economic conditions, nevertheless opportunities for
employment with the oil and gas industry
are increasing and a shortage already
exists in several occupational fields,"
TIPRO assesses.
Association Priorities
Longanecker says TIPRO "remains
focused on advancing a targeted federal
policy agenda, while protecting and
strengthening an already strong regulatory
and business environment in Texas."
On the state level, Longanecker lists
as key priorities in Texas for the upcoming
legislative session:
* Identifying programs to better allocate oil and gas tax revenues for county
road repair and maintenance in energyproducing areas;
* Supporting workforce development
efforts for the oil and natural gas sector;
* Educating policymakers on the benefits of oil and gas development; and
* Maintaining a balanced, sciencebased approach to developing state regulations.
As market conditions improved in
2017, the report points out, the U.S. oil
and natural gas industry also welcomed
a reprieve from overbearing federal policy
measures targeting domestic producers
advanced under the Obama administration.
"The rollback of onerous or unnecessary policies, a return to utilizing sound
science at the Environmental Protection
Agency for developing regulations, meaningful tax reform and a commitment from
elected officials to achieving U.S. energy
dominance, resulted in further industry
investment, job growth and growing optimism," the report states. "Nonetheless,
several challenges remain, including uncertainty surrounding tariffs on imported
steel and aluminum, current negotiations
on the North American Free Trade Agreement, overbearing federal methane regulations, and environmental activist groups
that oppose reliable energy."
Increasing tensions over international
trade issues also have caused concerns
among domestic energy producers, TIPRO
reports, adding it opposes President's Trump
decision to impose a 25 percent tariff on
steel imports and a 10 percent tariff on imported aluminum. The association warns
those tariffs would increase costs significantly for domestic producers that rely
heavily on the products in their operations,
including drilling equipment and pipelines.
TIPRO points out that Texas, as the nation's
leading oil and gas producer, is likely to
bear an inordinate burden of such tariffs.
TIPRO also expresses concern over
White House calls to terminate NAFTA,
noting that negotiations on the trade treaty
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American Oil and Gas Reporter - June 2018

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