Texas Job Growth Slows

6,900 Oil Jobs Lost this Year
Texas Job Growth Slows

Texas Job Growth Slows

As crude prices continue to bounce around, the effects of sustained low prices are showing up in slowed job growth throughout Texas.

Related: Low Oil Prices and the Texas Economy

The Texas Workforce Commission reported that the state added 7,100 jobs in February, which was the smallest monthly job gain since October 2011. The biggest hit came in the oil industry where 6,900 jobs were lost in January and February.

Low crude prices means reduced activity and the decreased demand for oilfield equipment and services means layoffs for many companies that service producers. These companies are reporting significant revenue losses as drilling activity and oil prices have steadily declined. Recent layoffs in the service sector include:

  • Offshore drilling contractor Seadrill will cut 159 jobs
  • Tenaris will cut 133 workers from its northwest Houston plant
  • AFGlobal Corp. will cut 89 workers from the company’s North Houston facility
  • DHW Well Service Inc. will cut 55 workers from a fabrication shop in Victoria
Gov. Greg Abbott issued a statement saying Texas “continues to be a model for economic growth and prosperity across the nation. However, there is more we can and must do. I am working with the legislature to ensure we pass legislation that lowers the tax burden on businesses, guarantees long-term funding for transportation, and provides economic development opportunities – including in higher education – to further diversify our economy. “ 

Despite the slowed job growth, the Texas consumer confidence index increased 4.7 percent over this time last year and the state’s unemployment rate dropped to 4.3 percent, down from 4.4 percent in January 2015. 

Read more at twc.state.tx

Oil & Gas Growth Expected in 2014 – Dallas Fed

Refineries & Petrochemical Plants Are Struggling to Find Engineers and Construction Workers
Federal Reserve Districts

Federal Reserve Districts | Click to Enlarge

The Federal Reserve Bank of Dallas reported that oil & gas companies in the 11th district, which includes Texas, expect further growth in 2014.

Texas respondents indicated particularly strong activity levels in energy, which means the Eagle Ford Job market will remain robust.

The Fed also noted demand for oilfield services was steady even though the rig count had fallen in response to more wells being drilled per rig. [Read more…]

Energy Activity Holding at High Levels in Texas – Dallas Fed

Margins For Oilfield Service Firms Have Tightened
Federal Reserve Districts

Federal Reserve Districts | Click to Enlarge

The Federal Reserve Bank of Dallas reports energy activity has seen little change from “high levels” over the past reporting period in its most recent Beige Book.

It’s no surprise. More than 800 of the ~1,700 rigs active in the U.S. are working in Texas. Over 250 of those rigs are active in the Eagle Ford. [Read more…]

Eagle Ford Energy Boom is Just Beginning

The rising economic tide pushed by the Eagle Ford is boosting business activity in Corpus Christi

“The Eagle Ford energy boom is just beginning” was the comment for Texas A&M University professors earlier in the week. Hotels and restaurants are already benefiting in Corpus Christi and other industries will be following along in short order. The influx of South Texas oilfield jobs is supporting the economy across the area and not just where drilling is active.

San Antonio Businesses Have Eagle Ford Optimism

Eagle Ford Shale jobs have posted major gains over the past year and optimism in the economy is spreading throughout San Antonio. Even with the obstacles the U.S. faces as a country, South Texas is poised for growth.  Only one in nine businesses in a recent survey expects business to slow in the coming year and only one expects the economy to stay flat. The rest are expecting higher demand for products and services.

An interesting note from the story is that the one company that expects the economy to stay flat hired 13 employees in the past year! If that is a sign of things to come, South Texas might benefit from the Eagle Ford Shale Oil boom for many years to come. [Read more…]

South Texas Economic Development Booms – Eagle Ford Shale

The Texas Railroad Commission along with many in the oil & gas industry expect that development of the Eagle Ford Shale could be the largest economic boom in our state’s history. With over 200 rigs working and more job openings that can be filled, expect the tax rolls to expand and new buildings throughout the region. Eagle Ford Shale boom is creating lots of opportunity in South Texas and that might be an understatement. [Read more…]

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