Houston Expects Continued Growth As The Hub For The Petroleum & Gas Industries:
The largest city in Texas, Houston, has grown to nearly 6.9 million people living in the metropolitan statistical area (MSA) with 2.3 million in the city alone. The housing industry has not been able to keep up with the growth of this city and thus, the population growth has slowed. However employment opportunities are on the rise nation wide with the petroleum and natural gas industries expected to drive this economic growth.
Texas’ population as a whole grew by almost 400,000 people in 2017 to a total of 28 million inhabitants. The city of Houston MSA represents about 24% of the population in the state. According to energy.gov in 2016, the oil generation and petroleum fuels industries, together, employed almost 516,000 workers nationwide. In 2017, Houston employed approximately 85,700 in the exploration, production, and oil field service sectors or roughly 16% of the 2016 national petroleum and gas workforce.
In 2018 Houston has reported higher than the national average for job growth at 2.8%, second highest only to Dallas at 3.4% job growth. The opportunities are in Texas although it may be hard to tell with the recent natural disasters and geopolitical hurdles for the oil and gas industries.
“From an energy perspective, we were busy watching: a) OPEC extend its cuts and adhere to them, b) US producers increase production and keep costs down, and c) demand increase enough to give us hope but not yet enough to really move the needle,” states John England of Deloitte.
Twelve of the top 24 Energy companies in Houston reported profits for Q3 2017 which is a good sign as fewer bankruptcies have taken place in the industry throughout the course of the year compared to previous. With the growth of population, demand, and industries an unfortunate side effect are the layoffs. Houston.org expects some layoffs to come to the white collar sector of the petroleum industries but increase employment to much of the exploration and blue collar jobs. This is to enable further growth with restructuring businesses and potential mergers.
That being said, the Bureau of Labor Statistics expects the mining segment, which houses the oil and gas industries, to add an estimated 90,800 jobs nationally by 2026. If Houston can maintain 16% of the industry’s workforce that means an additional 14,500 in the ‘mining sector’ by 2026. In 2017 Houston grew by roughly 32,000 net population. From this, we can estimate that roughly 4.5% of these new Houstoners found employment in the emerging positions in the oil and gas industry. We can expect this percentage to increase if the housing limitations continue to throttle the population growth.
“After surveying 3,000 industry employers, along with 7,000 workers, they found that 60 percent of employers expect to recruit significantly in the next 12 months.” Stated by Energy In Depth after a report done by NES Global Talent.
Since the latest downturn of oil prices, it is expected companies will continue to consolidate operations focusing on Houston as the hub. Economies of scale will propel growth and tactical hirings. American Petroleum Institute projects 1.9 million jobs in the petroleum industry by 2035. Of these jobs, it is anticipated that the millennial generation will provide innovation and diversity to the industry.
“There is a vast opportunity for the industry to attract, retain, and develop lifelong careers for Millennials. Millennials today have unique characteristics that will enable them to power past impossible. By harnessing this generation’s unshakable confidence in a better future and use of technology, the industry is positioned well to address tomorrow’s greatest challenges.” – API
At present, the millennial population (ages 22-37) is the largest population currently living in Houston. They are also the highest educated generation in the workforce with 34% having some college education and 27% with degrees. Houston is a hub for the oil and gas industry with growing career opportunities for these young millennials. With the growth of the industry and anticipated career opportunities, we will see more millennials entering petroleum and natural gas industries in the Houston area.
Top Talking Points:
- The oil and gas industries are expected to grow by over 90,000 jobs by 2026.
- Houston manages an estimated 16% of the workforce in the ‘mining industry’.
- Multiple institutions are planning to hire aggressively in the near future after several mergers and restructuring.
- As the city of Houston continues to grow slowly, the millennial generation has become the highest population in Houston and highest educated generation to date.