The Permian Basin’s oilfield workforce has been gradually strengthening since the pandemic began waning, but there are still not enough employees to do everything that could be done.
And while the energy industry’s full potential remains unfulfilled, the world’s demand for energy inexorably grows.
Permian Basin International Oil Show President Larry Richards says that one of greatest challenges any company in the upstream oil and gas market faces today is recruiting and retaining qualified personnel.
“Even though we have some of the highest pay rates of any U.S. industry for field and mid-management employees, the boom and bust cycles of the past leave many candidates wary of leaving other industries and starting a new career in oil and gas,” Richards said Tuesday.
He said Odessa College, Midland College, the University of Texas Permian Basin and Texas Tech University “have done an outstanding job of adding vocational training courses in truck driving, welding, automation, electronics and other fields to add young local talent in a wide range of specialties.
“UTPB and Texas Tech have also been a huge help in educating a new generation of engineers who want to make the Permian region their home,” Richards said. “I believe one of the great untold stories of 2023 is the sheer number of incredibly talented young engineers, technicians, IT specialists and field personnel who are adding their unique energies and entrepreneurial spirits to our Permian workforce from all over the U.S.
“Unfortunately, all those together cannot keep up with the fast-growing demand for more workers in our region. While delivery and material constraints were the largest barriers we faced during COVID and the following year, our No. 1 constraint today is finding and training qualified people.”
Richards said oil and natural gas production “is one of the fastest paced, toughest and most challenging industries the world.
“Like the military, we have very young men and women being given responsibilities for millions of dollars of equipment and the critical safety of our employees,” he said. “I’ve also personally found working in this industry to be exciting, rewarding and a hell of a lot of fun.”
Citing the latest reports from the U.S. Bureau of Labor Statistics and Texas Workforce Commission, TXOGA President Todd Staples said from Austin that statewide upstream exploration and production employment grew by 1,500 jobs in March.
According to Investopedia, “Upstream refers to points in production that originate early on in the processes. Also called exploration and production (E&P), upstream is farthest from the end-user consumer in the oil and gas supply chain.”
“Job growth in Texas’ oil and natural gas industry even in the midst of turbulent economic times is a continued testament to the demand for the irreplaceable products that help power our modern lives,” said Staples. “The industry remains committed to enhancing national and energy security for our nation and our allies around the world.”
He reported a total of 198,700 upstream jobs and said January 2023 jobs were up by 20,000 or 11.2 percent over March 2022.
“Since the COVID low point in September of 2020, the months of increase in upstream employment in Texas have outnumbered the months of decrease by 26 to 4,” Staples said. “The industry has added 41,700 Texas upstream jobs, averaging growth of 1,390 jobs a month.
“These jobs pay among the highest wages in Texas with employers in oil and natural gas paying an average salary of approximately $115,000 in 2022.”
