To a large extent, service companies make the oilfield go.
There are more of them in the Permian Basin area phone book than you would probably want to count, making it clear that without them there would be no oilfield as presently constituted.
The Texas Independent Producers & Royalty Owners and Texas Oil & Gas associations and the Houston-based Energy Workforce & Technology Council say the service companies also supply a lot of the spirit that makes the Basin unique among work scenes around the nation.
“Oilfield services are a critical part of the upstream sector and a key indicator of the health and level of activity occurring in the industry,” TIPRO President Ed Longanecker said from Austin. “In the Permian Basin, oilfield services employment reached 59,023 in 2023, an increase of nearly 18,000 jobs since 2015 with an average annual wage of $103,207 along with 2,167 payrolled business locations and a Gross Regional Product exceeding $12 billion.”
Longanecker said oilfield services employment has also risen to a projected 62,460 this year in the Permian, indicating continued growth and employment opportunities for every skillset and demographic.
“As an example in September this year, the Permian Basin had 1,448 unique job postings in the oilfield services sector with 589 in Midland County, 418 in Ector County, 39 in Reeves County, 124 in Eddy County, N.M., and 39 in Lea County, N.M.,” he said. “These included a broad range of job titles and required skills including truck operators, electricians, wireline operators, HVAC specialists, chemical technicians, pump repair mechanics, quality control representatives, water treatment technicians, engineering managers, environmental specialists, rig operators, regulatory technicians, mud loggers, welders, automation technicians and cement equipment operators, among many other key roles.”
TXOGA President Todd Staples said the companies “reflect the ‘can-do’ attitude of the oil and natural gas industry.
“They are a huge factor in delivering the increased productivity in the oilfield, even with fewer rigs,” Staples said from Austin. “The men and women who make up Texas’ and America’s service companies set the worldwide standard for excellence.”
TXOGA Chief Economist Dean Foreman said they are integral to the industry because they provide technical expertise, equipment and support for the exploration, drilling and completion of wells.
“They enable oil and natural gas companies to develop reserves, optimize production, maintain safety and manage wells through the lifecycle,” Foreman said. “As industry increasingly seeks to optimize the efficiency of resource recoveries, service companies have also driven much of the innovation in technology and processes.”
He said they are essential in day-to-day production, supporting well drilling, logging, cementing, hydraulic fracturing, maintenance, workovers and many supply chain functions.
“They bring technology, skilled labor and tools to safely and efficiently extract oil and natural gas and they work closely with operators to ensure that wells are executed and maintained properly,” Foreman said, adding that the service companies offer excellent entry points into the industry for young professionals with a wide variety of roles from field engineering to equipment operations and maintenance.
“The diversity of job functions provides ample opportunities for skill development and career growth,” he said. “Entry-level jobs include field engineers who design, test and implement drilling strategies.
“Entry-level engineers often start in the field, earning around $80,000-$100,000 depending on the company and production region.
“Rig operators and technicians operate drilling equipment and assist with the physical aspects of oil extraction with pay starting from $40,000-$70,000 annually and logistics coordinators manage equipment and personnel, ensuring that supplies and tools are available, with salaries typically ranging from $50,000-$70,000.”
Foreman said data analysts use real-time data to improve drilling performance and safety with entry-level positions usually starting around $60,000-$80,000.
“According to recent data from the U.S. Census Bureau and Texas Workforce Commission, oil and natural gas companies in Texas employed over 202,000 people in drilling, extraction and support services with total wages surpassing $11 billion in the first quarter of 2024,” he said. “Over the past year wages totaled $31.7 billion, equating to average earnings of around $160,000 per worker, which is significantly higher than the U.S. average annual salary of approximately $64,000.
“By any measure, Texas’ oil and natural gas industry offers incredible opportunities for pay and advancement.”
Foreman recommended checking TXOGA’s Career Center at Oil/Gas Jobs-Texas Oil & Gas Association (txoga.org)
“Over the last few decades oilfield service companies have transformed significantly, especially with advancements in technology,” he said. “Previously many jobs were labor-intensive, requiring manual drilling and basic tools.
“Today, the sector relies on the latest in innovation and technology, utilizing cutting-edge machinery and automation as well as data analytics, which enhance both safety and productivity.
“The increased use of artificial intelligence, digital tools and robotics has streamlined operations, reducing manual labor while improving environmental outcomes. The workforce has become more specialized, focusing on driving innovation in drilling techniques, well maintenance and emissions reductions.”
Energy Workforce & Technology Council President Molly Determan said service companies play a crucial but often understated role.
“They are the ones making sure that energy production runs smoothly and safely,” Determan said. “From drilling to well completion, from pressure pumping to hydraulic fracturing, these companies provide the equipment, technology and expertise that allow energy to flow from the ground into our lives.
“Their work is highly specialized and technical, requiring deep knowledge and skill to handle complex operations. But it’s not just about machinery and technology, it’s about the people behind the scenes who ensure that every step is done right with safety and efficiency at the forefront.”
Determan said the service companies are responsible for streamlining operations, improving production and maintaining high safety and environmental standards.
“Without them the process of extracting oil and natural gas would be slower, more expensive and far less efficient,” she said. “Their work helps keep energy flowing to homes, businesses and industries worldwide, making them an essential part of the global energy landscape.
“In short they are the backbone of the energy industry, quietly making sure that everything runs smoothly so that we can enjoy the energy we rely on every day.”
Determan said the companies on a day-to-day basis ensure that wells are drilled accurately and efficiently, maintain process critical equipment, monitor reservoirs, optimize production flow and perform essential repairs and upgrades to keep wells operational.
“The true scope of work for energy services is massive,” she said. “Whether it’s manning highly technical crews, managing pressure during drilling or applying cutting-edge technology to map or maintain the long-term integrity of wells, every barrel of oil and natural gas has the energy services sector behind it.”
Determan said the oilfield service sector is a fantastic entry point for those looking to enter the energy industry. “Service companies offer a wide array of job opportunities from hands-on fieldwork to technical and engineering roles,” she said. “Many of the service companies have large-scale training programs designed to help those just entering the industry gain practical skills, safety certifications and technical knowledge.”
Determan said the sector has evolved dramatically.
“In the early years of oil and gas production, the industry was heavily reliant on manual labor and rudimentary equipment and we’ve had a hard time overcoming this antiquated perception,” she said. “Since the days of the shale revolution in the mid-2000s we’ve seen the rise of digitalization, automation and data analytics, which now allow for more precise drilling, real-time monitoring of wells and predictive maintenance.”
