Texas Oil and Gas Industry Could Lose 1 Million Jobs This Year from Oil Slump

Texas Oil and Gas Industry Could Lose 1 Million Jobs This Year from Oil Slump

June 26, 2020

No one understands how vital the energy industry is to the economy more than Texas. A state where the oil and gas industry contributes $557 billion to the economy and makes up 1 in 6 jobs in the state. The recent market disruption to the industry has impacted energy workers nationwide, Texas having been hit particularly hard.

The Guardian reports:

The shutdowns have led to apocalyptic headlines proclaiming that the state could lose 1 million jobs, and at least $24bn by the end of the year. Oil and gas companies have paused or curtailed production and halted capital expenditures to conserve cash leading to mass layoffs as the world shut down.

In April alone, the industry shed a historic 26,300 jobs in Texas.

Texas had started to open back up, but due to the recent spike in new coronavirus cases, the state had to hit pause on the reopening plans. Unfortunately, for the energy sector, this will do nothing but hurt the already struggling industry more.

In May there had been hope for the oil industry’s recovery as crude oil futures rose. A survey conducted by the University of Houston’s Hobby School of Public Affairs on Texas Oil and Gas Association member companies found, “Virtually all of respondents — 98% — believed that the price of oil per barrel in May 2020 represented the nadir for the industry, and that prices would rise over the coming year.”

Sadly, it seems that hope is dimming in Texas. “Oil prices were already depressed by overcapacity at the beginning of 2020, and nowhere did it hurt harder than in Texas, which accounted for 41% of total US crude last year.” This will surely lead to more job loss within the sector and hardships across the state, that depends so much on revenue from the industry.

Right now, the industry and energy workers across the nation need strong leadership and someone who is on their side. Joe Biden is the oil industry’s worst nightmare and threatens the future of the valuable industry and its recovery as it comes back from their COVID-19 loses. The survey found three in four Texas Oil and Gas Association members “saw a Biden victory in November as the biggest potential threat to their companies’ growth.

Biden’s progressive policy agenda includes opposing new fracking permits on federal lands and a ban on new offshore drilling. Joe Biden and his progressive friends continue their ill-informed and misguided war on fossil fuels, completely ignoring the millions of American jobs and abundance of reliable and affordable energy the industry provides to households across the country.

The eco-left needs to be reminded that energy jobs are essential. The oil and gas industry has kept America running and attacking the industry even more will have harsh effects on the US economy, which is the last thing we need right now.