Texas Upstream Sector Sees Unexpected Boost from Higher Oil Prices
The Texas upstream oil and gas sector saw an unexpected boost in job growth and rig count due to higher oil prices resulting from the conflict with Iran. According to data from the Texas Alliance of Energy Producers, the sector added 2,100 jobs during the first half of this year.
Karr Ingham, the alliance's petroleum economist and president, attributes the increase in employment to the conflict-based higher oil prices. He notes that Texas exploration and production employment began to decline in October 2024, with over 11,300 jobs lost after crude oil prices declined in 2024 and 2025.
The state's rig count also saw a dramatic recovery in 2026. The statewide rig count averaged 263 in June, an increase of 34 rigs in the first six months of the year. Ingham believes that the market floor for crude oil prices has moved higher as a result of the war and higher prices.