Record-breaking demand for oil expected to have an impact on job growth in Texas.
On February 12, OPEC predicted that the 2018 world demand for oil would grow faster than previously forecast because of a healthy world economy. The Organization predicted that world oil demand would rise by 1.59 million barrels per day this year, which is an increase of 60,000 bpd from their previous forecast. Economists believe this is another encouraging sign of recovery in oil and gas after the price crash of 2014. In the U.S, the Energy Department expects oil prices to average $54.01 a barrel in the first quarter of 2018, up from its previous forecast of $51.79 a barrel.
Tight oil & gas labor market in Texas
According to December 2017 data released by the Federal Reserve Bank of Dallas, the Texas economy is predicted to grow by 3 percent in 2018 and add 366,000 jobs. A significant portion of this growth is attributed to the rebound in oil prices which results in energy and manufacturing jobs. The Dallas Fed’s latest quarterly energy survey showed jumps in the indexes for hiring, employee hours and wages. Hiring in the oil and gas industry is outpacing layoffs for the first time in three years, and 60% of employers have plans to hire significantly more people over the next 12 months.
Growth per sector
Which industry sector will be most promising when it comes to jobs in 2018? According to a recent Rigzone survey:
Upstream – Also known as the Exploration and Production sector, the upstream industry finds and produces crude oil and natural gas. 46.6 percent of respondents believe that upstream will generate the most opportunities.
Midstream – The midstream industry processes, stores, markets and transports commodities such as crude oil, natural gas. Midstream provides the vital link between petroleum producing areas and population centers where consumers are located. 15.3 percent believe midstream will provide the greatest growth in employment.
Downstream – The downstream industry includes oil refineries, petrochemical plants, petroleum products distributors, retail outlets and natural gas distribution companies. 16.6 percent believe downstream will present the most growth opportunities for workers.
Wherever you are in the Oil & Gas sector, The Daniel Group can help with your staffing needs.