Texas “led the nation” in oil and gas jobs last year with 476,777 people employed in the industry, according to the Texas Independent Producers and Royalty Owners Association’s (TIPRO) latest state of energy report, which was released earlier this month.
The figure, despite representing almost a quarter of oil and gas jobs nationwide last year, marked a decrease from 2024, when this employment stood at 478,732, the report outlined. This employment came in at 469,847 in 2023, 448,064 in 2022, 415,732 in 2021, and 441,223 in 2020, the report showed.
When incorporating direct, indirect, and induced multipliers for oil and gas employment, the industry supported a total of 2,509,121 jobs in Texas in 2025, according to the report., which revealed that the top five positions held by workers in the Texas oil and gas industry in 2025 were Cashiers, at 11.5 percent, General and Operations Managers, at 4.6 percent, Oil & Gas Roustabouts, at 4.5 percent, Heavy and Tractor-Trailer Truck Drivers, at 3.5 percent, and Service Unit Operators-Oil and Gas, at 3.4 percent.
Texas was the leading state by employment in 16 out of the 19 sectors used to define the oil and natural gas industry in 2025, the report noted.
According to TIPRO’s 2026 report, oil and gas jobs in Texas paid an annual average wage of $133,439, which the association said was 74 percent more than all average private sector jobs in the state. The highest average industry wages were in Alaska last year, at $150,986, the report revealed.
Texas had the highest oil and gas payroll in the country in 2025 at $64 billion, the report highlighted, noting that California came in “at a distant second ($15 billion), followed by Louisiana ($10 billion)”. TIPRO’s 2026 state of energy report also revealed that Texas had the highest number of oil and gas businesses in the nation last year with 23,483. This was followed by California, with 9,593, Florida, 7,728, Georgia, with 6,494, and Pennsylvania, with 5,737, the report pointed out.
In 2025, direct Gross Regional Product for the Texas oil and natural gas industry was $385 billion, according to the report, which stated that, “once you incorporate the typical multiplier of 2.5, the Texas oil and natural gas industry supported 36 percent of the Texas economy”.
“The Texas oil and natural gas industry purchased U.S. goods and services in the amount of $263 billion, 81 percent of which came from Texas businesses,” the report added.
“The Texas oil and natural gas industry paid $27 billion in state and local taxes and state royalties in Fiscal Year 2025,” it continued.
TIPRO’s report stated that oil production in Texas reached a new record of nearly 2.1 billion barrels in 2025. Texas’ natural gas production also hit a record 13.5 trillion cubic feet last year, the report revealed.
According to the report, Texas had the highest rig count in the country in 2025 with an average of 272 active rigs. The number of rigs in Texas decreased from 277 in January to 253 in December, the report highlighted.
TIPRO’s report revealed that the U.S. oil and gas industry employed 2,043,859 professionals in 2025, which it said represented a net decline of 8,368 direct jobs compared to 2024, “subject to revisions”.
“When incorporating direct, indirect, and induced multipliers for employment at the national level, the industry supported 19,282,999 million jobs last year,” the report stated, adding that there were “373,478 direct U.S. upstream sector jobs in 2025, a net decline of 9,218 jobs compared to 2024”.
In an executive summary section of the report, TIPRO said it “applauds the contributions of the Texas oil and natural gas industry and the policymakers who recognize its critical role in providing reliable energy to consumers at home and abroad”.
“As global energy demand continues to grow, the United States and Texas will remain central to ensuring the availability of stable, affordable and secure energy resources for years to come,” it added.
TIPRO was founded in 1946 and represents nearly 3,000 individuals and companies from the Texas oil and gas industry, the organization’s website highlights.
“Established by independent oil and natural gas producers hoping to provide a unified voice for the industry, TIPRO is one of the country’s largest oil and gas trade associations and the strongest advocacy group representing both independents and royalty owners in Texas,” the site states.
To contact the author, email andreas.exarheas@rigzone.com
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