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Odessa Today
By the People, for the People
Oil Industry Sees Decline in Jobs as Drilling Slows in 2026
Industry expert cites lower oil prices and company mergers as factors behind job losses in the Permian Basin region.
Published on Feb. 23, 2026
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The oil and gas industry in the Permian Basin region of Texas is off to a slow start in 2026, with industry expert Mickey Cargile reporting that companies are adapting to lower-than-average oil prices by returning money to shareholders and being more efficient in their drilling operations. While oil production is staying steady, the number of active oil rigs has declined from 588 in 2025 to 238 currently, leading to job losses in the upstream sector.
Why it matters
The oil and gas industry is a major employer in the Permian Basin region, and a slowdown in drilling activity can have significant economic impacts on local communities. The decline in jobs could also affect the broader regional economy, which is heavily dependent on the energy sector.
The details
According to Cargile, the market for oil rigs is softening, but production is staying up, indicating that drillers are becoming more efficient. Currently, there are about 203,000 upstream jobs in the region, and the outlook is that this number will stay steady or decline slightly. Cargile also noted that company acquisitions and mergers could lead to further job losses as businesses look to cut costs.
- The oil rig count currently sits at 238 rigs, down 350 from the 588 active rigs in 2025.
The players
Mickey Cargile
An industry expert who provided insights on the current state of the oil and gas industry in the Permian Basin region.
What they’re saying
“I do think that companies are being very aware of their capital structure right now. They're returning money to shareholders, and they're being very smart about drilling.”
— Mickey Cargile, Industry expert (KMID/KPEJ)
“The market for rigs is softening, but production is staying up. That just shows that drillers are being much more efficient in finding oil and producing oil.”
— Mickey Cargile, Industry expert (KMID/KPEJ)
“There have been some job losses. Currently, there are about 203,000 upstream jobs right now in this area. The outlook is that it will stay steady to declining a little bit.”
— Mickey Cargile, Industry expert (KMID/KPEJ)
“The wild card is acquisitions; if there are major mergers, there will be more job losses because of that.”
— Mickey Cargile, Industry expert (KMID/KPEJ)
What’s next
The oil and gas industry in the Permian Basin region will continue to be closely watched in the coming months to see if the decline in drilling activity and job losses continue or if the industry is able to rebound.
The takeaway
The slowdown in the oil and gas industry in the Permian Basin region highlights the cyclical nature of the energy sector and the need for diversification in the local economy to mitigate the impact of downturns. The industry's focus on efficiency and returning money to shareholders rather than investing in new drilling projects suggests that the job losses may persist in the near term.
