Employment In Oil & Gas

The oil and gas extraction industry employed about 316,000 wage and salary workers in 2004. Of these, only 4 in 10 workers were employed directly by the oil and gas extraction companies. The rest worked as contractors in the support activities for mining sector, which also included workers who extract coal and minerals on a contract basis. Although onshore oil and gas extraction establishments are found in 42 States, almost 3 out of 4 of the industry’s workers in 2004 were located in just four States—California, Louisiana, Oklahoma, and Texas. While most workers are employed on land, many work at offshore sites. Although they are not included in employment figures for this industry, many Americans are employed by oil companies at locations in Africa, the North Sea, the Far East, the Middle East, South America, and countries of the former Soviet Union.
While slightly more than 50 percent of establishments employ fewer than 5 workers, the vast majority of workers are employed in establishments with 20 or more workers (chart 1). As more large domestic oilfields and gas fields are depleted, major oil companies are focusing their exploration and production activity in foreign countries. Consequently, smaller companies with less capital for foreign exploration and production are drilling an increasing share of domestic oil and gas. Technology also has significantly decreased the risk and cost for smaller producers.
Relatively few oil and gas extraction workers are in their teens or early 20s. About 56 percent of the workers in this industry are between 35 and 54 years of age.