October 15, 2013

US oil and gas industry employment, production booms

According to the Texas Independent Producers & Royalty Owners Association's report, released this week, employment in the U.S. oil and gas industry is doing very well.

According to the Texas Independent Producers & Royalty Owners Association's report released this week, employment in the U.S. oil and gas industry is doing very well. The field added new jobs faster than the private sector as a whole during the year ending in June, representing a 2.6 percent increase over the previous year. With this increase, there are more than 1 million oil and gas industry jobs nationwide, according to the report.

According to TIPRO, this surge in employment is due in large part to horizontal drilling and improvements in hydraulic fracturing that have led to gains in oil gas production in the U.S. Indeed, U.S. production is at a 15-year high, with 6.5 million barrels produced per day, according to the Energy Information Agency.

“The U.S. oil and gas industry continues to flourish, adding over 177,500 jobs since 2010,” said Ed Longanecker, the president of TIPRO. “The positive economic impact of our industry is unmatched - with Texas leading the country in oil and gas production, innovation and employment trends. This is due in large part to our state's favorable business and regulatory climate, which serves as a model for others to follow.”

Market forecast

The oil and gas industry has grown in the past five years, despite a dip during the recession, 4-traders reported. Industry leaders expect that natural gas prices will rise to meet increased demand downstream, and that production will increase along with prices over the next five years. Factors influencing increasing prices include economic recovery in developed nations and fast-paced development in emerging markets.

The forecast in question defines the oil and gas industry as comprised of the exploration and production of crude petroleum, oil extraction from shale and sands, the exploration and production of natural gas and more.

Other factors

As TIPRO's report mentioned, the oil and gas industry has technological improvements to thank for much of its growth. In fact, many of the jobs added to the sector are in services and support. This includes mechanical services and maintenance, on which all oil and gas products depend. Things like custom gearbox design and gearbox refurbishment are essential in every project, including those in horizontal drilling and fracking, which were cited as contributors to the industry's growth.