The Texas upstream industry has seen reduced natural gas and oil prices and lower permitting through the first half of the year, and in June, employment growth began to slow as well. 

Exploration and production (E&P) activity “is clearly in a state of contraction as measured by the Texas Petro Index (TPI),” said Texas Alliance of Energy Producers (TAEP) economist Karr Ingham. 

The TPI, calculated using 1995 as the base year for E&P activity, fell in June for the fifth consecutive month to 169.2, which was two points higher year/year, but down from May when it was 172.6. The TPI has declined 6% since the start of the year, when it reached a post-pandemic high of 179.6. 

Despite this, natural gas production in June reached record levels in Texas. Gas well completions rose...