AUSTIN, TX.—The oil and natural gas industry supported more than 2 million direct jobs in the United States in 2024, with total direct and indirect jobs tied to the energy industry reaching nearly 23 million, the Texas Independent Producers & Royalty Owners Association says.

According to the 10th edition of the association’s State of Energy Report, the U.S. oil and gas sector paid a national annual wage averaging $81,808 and had a combined payroll of $168 billion. TIPRO calculates total U.S. goods and services purchased in 2024 by the oil and natural gas industry exceeded $865 billion from more than 900 business sectors.

The TIPRO report analyzes national and state trends in oil and gas employment, wages and other key economic factors for the energy industry in 2024. The association says it developed the annual series to quantify and track the economic impacts of the domestic oil and natural gas sector, with an emphasis on the state of Texas.

Texas once again led the nation in oil and gas industry employment last year, TIPRO says, accounting for 23% of all oil and gas jobs in the nation. The industry supported 480,460 jobs in Texas in 2024, a net increase of 10,613 positions, with total direct and indirect employment of 2.8 million. The State of Energy Report notes that total U.S. goods and services purchased by the state’s oil and gas companies reached $307 billion last year.

“Despite facing a number of unique challenges, the U.S. oil and gas industry continued to offer significant economic support in 2024, while providing reliable and affordable energy to meet growing domestic and global demand,” says T. Grant Johnson, TIPRO chairman and president of Lone Star Production Co. “TIPRO looks forward to working with policymakers and officials at the state and federal level to unleash our nation’s full energy potential, with Texas continuing to lead the way.”

Record Production

The Lone Star State again was the nation’s top oil producer, TIPRO reports, supplying a record 2 billion barrels of oil to energy markets in 2024. The association points out the state’s producers also set a gas output record last year, producing more than 12.7 trillion cubic feet. State of Energy Report says total U.S. crude oil production averaged a record 13.2 million barrels a day in 2024, while natural gas production averaged 113 billion cubic feet a day, another record performance.

“Geopolitical tensions around the world continued to be a prevalent issue with conflicts in the Middle East and Ukraine fostering uncertainty and volatility across global energy markets,” State of Energy Report lays out. “Europe accounted for 55% of total U.S. liquefied natural gas exports, while 34% of U.S. LNG went to Asia and 11% was sent to Latin America. Overall, U.S. LNG exports for the year reached 88.3 million metric tons–an increase from 2023 at 84.5 million metric tons.”

U.S. LNG production, driven in large part by Texas operators, continues to be an essential resource for the nation’s allies, as they work to meet heightened energy demand while reducing their dependence on Russian energy supplies, TIPRP says. In 2025, LNG exports are expected to average 14 Bcf/d, an increase from 2024 levels. The association lauds the reversal of the Biden White House’s pause on permits for LNG export terminals, as it allows the U.S. oil and gas industry to resume its role as a reliable trade partner.

“In 2024, increases in natural gas production were essential to fulfilling rising energy demand within the United States,” says Ed Longanecker, president of TIPRO. “Thanks to record production, driven primarily by the Permian’s improved well productivity, domestic demand was met, and natural gas continued to supply affordable and reliable power. We applaud the Texas oil and natural gas industry and the policymakers that understand its importance.”

Looking Ahead

The U.S. Energy Information Administration sees positive trends in 2025 for the nation’s oil and natural gas industry in its Short-Term Energy Outlook, including increases in production and consumption. Additionally, TIPRO observes, Texas is experiencing a significant increase in electricity demand because of a surging population and emerging industries such as data centers and AI facilities. The state’s electrical grid operator, ERCOT, anticipates that peak loads could reach 152 gigawatts–almost double the historic level–posing both challenges and opportunities for the grid’s future stability and growth.

State of Energy Report says experts predict ERCOT will continue to rely on natural gas for load growth, with natural gas accounting for approximately 30.3% of the grid’s total generation in 2025 and 33.9% of generation by 2030.

“Given the U.S. power sector’s sustained reliance on natural gas for electricity generation, the occurrence of severe weather events that require dispatchable generation, and the electrification of our economy, natural gas is set to remain a critical energy resource for the power sector in the coming year,” TIPRO predicts.