(The Center Square) – The Texas oil and natural gas industry again reported job losses in the upstream sector in September as it has in previous months. Over the year, it reported gains.

Upstream oil and natural gas employment decreased slightly in September, according to new labor data. Statewide, Texas employers also reported job losses, The Center Square reported. Despite this, Texas leads the U.S. in job creation and in oil and gas production.

Total upstream salaried employment totaled 196,400 jobs in September, a drop of 500 over the month. Overall, the total is up by 2,400 over the year, from September 2025.

Since September 2020, the upstream sector has increased by 39,400 jobs, a gain of more than 25 percent, according to the data.

The upstream sector includes oil and natural gas extraction and related support activities. It excludes refining, petrochemicals, pipelines, and equipment manufacturing, which support hundreds of thousands of additional jobs in Texas.

So far this year, job losses have been reported in four of eight months as the sector and industry have been impacted by global conflict.

“With global tensions weighing on industries worldwide, Texas producers keep delivering the energy Americans rely on every day while nearing historic production highs,” Texas Oil & Gas Association president Todd Staples said in a statement. “To keep this momentum going, it is imperative that pro-reliable energy policies are prioritized to ensure our industry can grow the workforce and move product to market.”

TXOGA is also working to connect job seekers with employment opportunities. Its Career Center is helping potential employees with job searches, career planning and resume building and employers with posting job openings and showcasing their companies.

The upstream sector supports an additional 232,000 indirect jobs within the supply chain and 421,000 induced jobs supported by household spending across the economy, TXOGA says. In total, the upstream sector alone sustains 849,000 direct, indirect, and induced jobs, it says.

According to an analysis of employment data by the Texas Independent Producers and Royalty Owners Association (TIPRO), the 500 job losses are attributed to 100 in extraction and 400 in service sector jobs.

Despite the losses, upstream employment ended September higher than where it started in January of 192,400 jobs. It peaked in May with 197,300 upstream sector jobs, then declined in June and July to 195,500. It increased to a revised 196,900 in August before declining to 196,400 in September, TIPRO said.

Measured against the January starting point, upstream employment is up 4,000 jobs, or 2.1%, for the year, TIPRO said. The net gain “reflects a much larger increase of 5,800 jobs from a February low of 191,500 to the May peak of 197,300, following an early-year decline of 900 jobs in February,” it notes. “The June and July losses of 300 and 1,500 jobs, respectively, subsequently gave back a portion of that spring gain. August’s revised 1,400-job increase restored part of the July decline. September’s 500-job decline partially offset the August gain. July figures, initially reported as a 1,200-job decrease to 195,800, have since been revised and now reflect a 1,500-job decline from June to 195,500.”

The fluctuation is common, TIPRO adds, although the largest drops were in February of 900 upstream jobs and in July of 1,500, The Center Square reported.

“September’s modest 500-job decline leaves Texas upstream employment well above its January level, and job postings for the industry remain strong. Texas production continues to set the pace for U.S. output and serves as the primary buffer against global supply disruptions,” TIPRO president Ed Longanecker said in a statement. “Producers are operating with greater efficiency even as costs remain elevated. Sustaining this performance requires reliable energy infrastructure and a regulatory framework that allows capital to move at the pace of the resource.”

TIPRO’s workforce analysis continues to indicate strong job postings for the industry. There were 12,719 unique industry job postings in Texas in September. Other states posting unique job openings in the industry were California (3,688), Pennsylvania (3,552), Ohio (2,986) and New York (2,696), according to the data.

TIPRO also points to the latest federal production forecasts showing another anticipated record oil and natural gas output for 2026 and 2027. According to the Energy Information Administration’s October Short-Term Energy Outlook, U.S. crude oil production will reach a record average of 13.87 million barrels per day (bpd) in 2026 before increasing to 14.3 million bpd in 2027.

The EIA also forecasts U.S. marketed natural gas production will hit another record high surpassing 127.95 billion cubic feet per day in 2027 after already reaching a record this year of more than 123.538 billion cubic feet per day.

Both metrics represent an estimated growth rate of more than 3% over the year.

The growth is being driven by Texas, primarily in the Permian Basin, Eagle Ford and Haynesville shale formations, according to EIA data.