Texas Leads Nation in Oil, Gas Jobs

Why It Matters

The data highlights Texas’s outsized role in U.S. energy security and its substantial contribution to state fiscal health, shaping investment and policy decisions.

Key Takeaways

• Texas employed 476,777 oil & gas workers in 2025.
• Industry supports 2.5 million total Texas jobs via multipliers.
• Average oil & gas wage $133,439, 74% above state average.
• Texas payroll $64 billion, far surpassing California.
• Oil production hit 2.1 billion barrels, gas 13.5 trillion cu ft.

Pulse Analysis

Texas’s oil and gas sector remains a cornerstone of the state’s economy, not merely through direct employment but via a sprawling network of ancillary services. The TIPRO report shows that while headcount slipped slightly from 2024, the multiplier effect expands the impact to over 2.5 million jobs, illustrating how drilling activity fuels construction, logistics, and professional services. This depth of employment translates into higher average wages—$133,439 versus the broader private‑sector average—boosting household spending power and reinforcing Texas’s reputation as a high‑pay labor market for energy professionals.

Beyond payroll, the industry’s fiscal footprint is massive. A $64 billion payroll generated $27 billion in state and local taxes, while the $385 billion in direct gross regional product, multiplied by a 2.5 factor, underpins roughly a third of Texas’s overall economic output. Such figures give policymakers leverage when negotiating tax incentives, infrastructure spending, and workforce development programs, ensuring the sector’s continued competitiveness against other energy hubs.

Looking ahead, record production levels—2.1 billion barrels of oil and 13.5 trillion cubic feet of natural gas—combined with an average rig count of 272, position Texas to meet rising global demand. The state’s dominance in both job creation and capital investment signals sustained attractiveness for independent producers and major operators alike, reinforcing its strategic importance in national energy security and long‑term economic growth.