The US oil and gas industry is experiencing a paradoxical trend: record-breaking production levels coupled with a significant decline in employment. Despite the United States achieving unprecedented oil and gas output, the number of jobs in the sector has been steadily decreasing. This decline is not driven by climate policies or the rise of clean energy but rather by the industry’s relentless push for efficiency and the cyclical nature of the market.
According to recent data, oil production in the US has increased by 5% since 2019, reaching an average of 13.4 million barrels per day. However, employment in the oilfield sector has dropped nearly 20% from pre-pandemic levels. The oil and gas extraction industry employed approximately 112,000 people in 2022, a significant decrease from previous years.
The COVID-19 pandemic exacerbated this trend, leading to a loss of nearly 200,000 jobs in the sector, a 20% reduction in the total workforce. Although there are signs of recovery, with projections suggesting a rebound in employment levels by 2027, the current job market remains challenging for many workers.
The industry’s focus on efficiency means that fewer workers are needed to produce more oil. This shift has resulted in job losses across various roles, from rig operators to support staff in related industries. Despite the high wages and middle-class incomes these jobs often provide, the decline in employment highlights the ongoing transformation within the sector.
