Texas oil boom could push more than 1.8 million jobs from the Lone Star State
The U.S. oil boom is not over yet.
But according to a new report by the National Employment Law Project, it could push up to 2 million more jobs from Texas to other states.
In the past, Texas has been the epicenter of the oil and gas industry, with the nation’s biggest producers such as Chevron and Exxon Mobil making billions of dollars in profits there.
But the recent boom has led to massive job losses, particularly among the state’s young, blue-collar workforce.
And the state is now struggling to attract and retain talented workers as the boom fades.
Here are the reasons why Texas has fallen behind.1.
Losing skilled workers in a booming industry The number of oil and natural gas workers in the U.P.L.E. field office is down by more than 50 percent in the past year.
The number has dropped even further from 2.1 million workers in 2014 to just 1.3 million in May.
And while oil and mineral workers still make up a large portion of the state, they are expected to make up only about 10 percent of the workforce in the coming years, according to the National Labor Relations Board.
And as of last month, the oil patch had just under 1 million active oil rigs, down from 1.7 million in January, according the U and NEB.
While the oil industry is still relatively young, many workers have left the industry in search of better-paying work in other industries, according a recent study by the consulting firm McKinsey.
In Texas, for instance, the number of workers in oil and coal-related occupations fell by 13 percent over the past decade, the company found.2.
Lack of training and training in other fields The state’s largest employer, Schlumberger, announced in March that it would close the Schlumbergians Texas oil and chemical plant in the next two years.
That announcement followed a string of setbacks at other oil facilities across the country, including the BP-led Deepwater Horizon oil rig in the Gulf of Mexico.
Schlumbergers decision to close its Texas operations was also widely condemned by the industry.
“While Texas is a great state for oil and a great place to work, we cannot continue to allow our people to be displaced in search for a better-paid, better-skilled job,” Schlumbergs CEO Robert Anderson said at the time.
The company, however, defended the move, saying it was in the best interest of the company and its employees.3.
Rising costs The oil industry has been struggling to meet its cost structure as the oil price has continued to rise.
In 2015, the average annual cost of a barrel of oil was about $40 a barrel, a figure that has not been matched by a year since, according data from Bloomberg.
But a study published by the McKinsey Global Institute last month found that average production costs have jumped nearly 30 percent since 2014.
The institute, which is based in Austin, Texas, said it expected prices to continue to rise as long as demand remained strong.
“It will continue to be a major cost for the industry,” said Brian Lutz, a senior vice president at the institute.4.
Rising labor costsThe number of unionized workers has dropped to about 10.8 percent of all state workers, according for the latest figures from the Texas Employment Development Agency.
The unemployment rate has also remained high, with nearly a quarter of Texans living below the poverty line.
The low wage and low benefits also mean many workers are struggling to make ends meet.
But, for the most part, they have had the option of finding better jobs in other states that pay more, the Institute found.
In 2016, Texas earned a $15.3 billion national economy wage premium, which covers most of the costs of the tax cuts that the state was receiving.
That means Texas taxpayers are still paying $2.6 billion in tax breaks that are only partially offset by lower taxes for the state.5.
Rising demand In addition to rising costs, Texas is also experiencing an increase in demand for its energy resources.
In a recent report, McKinsey found that the number, amount and quality of new jobs created in the oil, gas and mineral sector increased by more over the same time period.
The report also found that there were more oil and minerals jobs in the state in the second quarter than in the first quarter of 2016, with more than 2.4 million jobs added to the industry over the last 12 months.6.
Increased competition From Texas to Colorado and New Mexico, energy companies are taking advantage of the downturn in demand by looking for new locations to expand operations.
The Dallas Morning News reported in January that the largest oilfield in the United States, Eagle Ford, will move from its current location in southwest Texas to an even larger one in the Colorado mountains.
And last month in New Mexico’s Albuquerque, oil giant Marathon Petroleum announced it would build a new facility in the city.7.