Houston, December 13, 2025
Houston’s oil and gas industry is bracing for significant job losses in the near future, with projections indicating approximately 3,200 positions could be eliminated by 2026. This downturn is primarily attributed to declining crude prices, which are expected to hinder drilling activities and force companies to implement cost-cutting measures. Despite these reductions in the oil sector, Houston’s overall job market is anticipated to grow by nearly 31,000 jobs, particularly in sectors like healthcare and construction, as the city adapts to changing economic conditions.
Houston’s Oil Sector Poised for Massive Job Cuts Next Year
Houston – Houston’s oil and gas industry is facing significant job losses in 2026, with projections indicating a reduction of approximately 3,200 positions. This downturn is attributed to declining crude prices, which are expected to slow drilling activities and impact the sector’s employment levels.
Impact on the Oil and Gas Sector
The Greater Houston Partnership forecasts that the upstream oil and gas sector will lose about 3,200 jobs in 2026. This decline is driven by anticipated lower West Texas Intermediate (WTI) prices, which are likely to squeeze producers’ margins and prompt cost-cutting measures across the industry. Additionally, related industries such as manufacturing and administrative support services are projected to experience job losses, with manufacturing expected to shed 3,400 jobs and administrative support services about 7,500 positions. Despite these declines, Houston’s overall job market is expected to grow, with an addition of 30,900 jobs in 2026, reaching a record 3.5 million by year’s end. The health care and social assistance sectors are projected to add nearly 14,000 jobs, driven by strong population gains and aging demographics. Other expanding sectors include construction, public education, public administration, and professional and technical services.
Recent Industry Layoffs
Several major oil companies have recently announced workforce reductions. ConocoPhillips plans to lay off up to 25% of its global workforce, affecting approximately 3,000 employees, as part of a broader restructuring effort. Exxon Mobil has also confirmed plans to lay off 2,000 workers, or up to 4% of its global workforce, as it consolidates smaller offices into regional hubs. Chevron has announced layoffs of over 500 employees in Houston following its merger with Hess Corporation. Additionally, Baker Hughes is laying off several hundred employees in the Houston area as part of a global restructuring of its oil field services and equipment segment. These layoffs reflect a broader trend in the industry, where companies are implementing cost-cutting measures in response to fluctuating oil prices and market uncertainties.
Background Context
Houston’s economy has long been closely tied to the oil and gas industry, with energy serving as a primary driver of job growth. However, recent fluctuations in oil prices and market dynamics have led to increased cost pressures and operational adjustments within the sector. The anticipated job losses in 2026 highlight the challenges faced by the industry and underscore the need for workforce adaptation and diversification to maintain economic stability in the region.
Conclusion
As Houston’s oil sector braces for job reductions in the coming year, it is essential for both business owners and the community to recognize the broader economic landscape. While the job cuts in the oil and gas industry are significant, sectors such as health care, construction, and professional services are on the rise, signaling potential avenues for employment growth. Supporting local entrepreneurs and adapting to market changes will play a vital role in navigating this transition and fostering resilience in Houston’s economy.
FAQ
What is causing the projected job losses in Houston’s oil sector?
The projected job losses are primarily due to declining crude prices, which are expected to slow drilling activities and lead to cost-cutting measures across the industry.
How many jobs are expected to be lost in Houston’s oil and gas sector in 2026?
Approximately 3,200 jobs are projected to be lost in Houston’s oil and gas sector in 2026.
Which companies have announced layoffs in Houston’s oil sector?
ConocoPhillips, Exxon Mobil, Chevron, and Baker Hughes have all announced layoffs in Houston’s oil sector.
What other sectors are contributing to job growth in Houston?
Other sectors contributing to job growth in Houston include health care, construction, public education, public administration, and professional and technical services.
How is Houston’s overall job market expected to perform in 2026?
Despite the job losses in the oil sector, Houston’s overall job market is expected to grow, with an addition of 30,900 jobs in 2026, reaching a record 3.5 million by year’s end.
Key Features
| Feature | Details |
|---|---|
| Projected Job Losses in Oil Sector | Approximately 3,200 jobs expected to be lost in 2026 due to declining crude prices. |
| Impact on Related Industries | Manufacturing and administrative support services projected to lose 3,400 and 7,500 jobs, respectively. |
| Overall Job Market Growth | Houston’s overall job market expected to add 30,900 jobs in 2026, reaching a record 3.5 million by year’s end. |
| Expanding Sectors | Health care, construction, public education, public administration, and professional and technical services are contributing to job growth. |
| Recent Layoffs | ConocoPhillips, Exxon Mobil, Chevron, and Baker Hughes have announced layoffs in Houston’s oil sector. |
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Author: STAFF HERE HOUSTON TX WRITER
The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
