West Texas Oil & Gas: Wage Surge Amid Job Cuts and Production Concerns
The oil and gas industry in West Texas is facing a mix of challenges and growth. While job cuts have been announced by major companies like Chevron and ConocoPhillips, wages have surged in the Midland-Odessa region. Meanwhile, President Trump's support for the industry maintains his popularity in the area.
The Midland-Odessa region has seen a 9.9 percent jump in average hourly earnings to $37.23 in the second quarter of 2025. This follows a 2.5 percent employment growth in the region from the first to the second quarter of the same year. However, the U.S. Energy Information Administration warns of a potential dip in domestic oil production by up to 100,000 barrels a day next year. Home sales volume has also climbed by 9.9 percent in June 2025 compared to the previous year, indicating regional economic resilience.
President Trump's support for the oil and gas industry has translated into strong backing in West Texas. In the Permian Basin, Trump won 94 percent of the vote in Glasscock County and had over 80 percent support in 12 of the 17 counties. Despite this, the number of drilling rigs active in the Permian region has decreased by 53 rigs to 251 as of October 3, 2025, compared to the previous year. Some industry executives suggest that U.S. oil production may have already peaked.
While the Midland-Odessa region experiences wage growth and employment increases, the oil and gas industry faces potential production declines and job cuts. President Trump's support in the region remains strong, despite these challenges. The region's resilience is evident in the climbing home sales volume, but the future of oil production remains uncertain.
