You are watching: How many jobs have been lost in the oil and gas industry
BRYAN, TX — The oil and also gas industry is what fuel Texas. The year 2020 was among the hardest years for the economic driver. A recent report indigenous the Texas Alliance of power Producers says Texas lost nearly 60,000 oil and gas work last year alone.
“The 60,000 work lost are mainly field jobs,” states Ed Hirs, an power Fellow for the college of Houston. “You recognize we have actually laid down more than 100 rigs. Each rig accounts because that 100 works plus everybody that supports them, so this are straight high paying work in the oil patch, the end in the fields operating, drilling, and managing ours oil production.”
The report additionally notes there space now about 150,000 upstream oil and also gas workers in Texas, the fewest in more than 15 years. In December the 2018, the sector employed much more than 228,000 workers.
The worldwide pandemic coupled with the plummeting demand for crude oil oil throughout critical year caused the ns of hundreds of jobs.
“It’s the low-cost producer
Experts to speak while 2020 was a horrific year for the oil and gas industry, the difficulty goes beyond the critical year, earlier nearly a decade.
“You know, it’s just not 2020. If we look in ~ the return on resources that oil and gas have yielded to the market, it’s horrible over the critical ten years. Of all of the different industrial sectors in the typical & Poor’s 500 (S&P 500) oil and gas has actually delivered about zero,” Hirs stated.
In an interview v 25 News last week, Texas Senator man Cornyn (R.) states with a brand-new administration in the White House, president Joe Biden’s decision to protect against the construction of the Keystone XL pipeline is destructive for an economy already crippled through the worldwide pandemic.
“I think this is largely symbolic, however it’s not symbolic to the civilization who are shedding their jobs,” stated Sen. Cornyn.
However, Texas’ oil and gas industry appears to be gradually recovering. Together of Friday, February 5, rudely is trading $56 a barrel, a tendency in the ideal direction that began shortly after the rollout of the coronavirus vaccine. Professionals say it’s quiet too an overwhelming to identify if us will see those 60,000 tasks lost go back to the Lone Star State.
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“Not just do we require the civilization economy come rebound native the pandemic recession, however we additionally need OPEC to allow the price that oil to boost to the level where this theatre in Texas and in Bakken and in Colorado and also Wyoming to end up being economic again,” claimed Hirs. “If OPEC desires an $80 for a barrel price, we’ll view those work come back. If OPEC desires a $40 a barrel price, we won’t view any brand-new jobs returning to the oil patch.”
Texas represents around 44% the the U.S. Rudely production. The Houston Chronicle reports nationally, the oil and gas industry lost an estimated 107,000 jobs throughout the pandemic, according to global consulting for sure Deloitte.