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Wage & Labor in Odessa

Posted on January 5, 2018

Analyzing the Oil Industry’s Wage & Labor in Odessa

With the help of CVA Advertising & Marketing, the Odessa Development Corporation contracted with Phoenix, Arizona based Foote Consulting Group, LLC (FCG) to produce an updated wage and labor analysis for the oil and gas industry in Odessa. The approach and goal of this study was to better understand the changes that have occurred in the oil and gas industry in recent years.

The oil and gas industry has experienced dramatic changes since 2016, and the Permian Basin is widely viewed as the center of the oil production universe. In the last calendar year, Odessa has outperformed all other areas in fracking production, including the OPEC nations, the Bakken in North Dakota, Louisiana, and other regions of Texas and Oklahoma. Due to vast technological improvements in fracking, production has risen without the need for dramatic employment increases. Therefore, it appears, the number of workers and their wages have risen only modestly.

FCG compared Odessa’s skilled and unskilled wage levels against the levels of Albuquerque, NM, Denver, CO, and Amarillo, Dallas, Houston, and Longview, TX. The group found that skilled wages are higher in Odessa than any of the other locations. FCG attributes this statistic to the thriving oil and gas industry.

FCG measured select labor availability/quality factors nation-wide which gives us a good “apples-to-apples” comparison of one labor market versus another. From these interview results, they created the FCG Index, which measures labor availability and quality on a one to ten point scale. Generally, scores of 3 to 4 are below average, 5 to 6 are average; 6 to 7 above average; 7 to 8 are good, 8 to 9 are very good and 9 to 10 are excellent. Odessa scored a 7.2 on the FCG Index.

The study is designed to help better understand regional workforce issues in Odessa from a site selection perspective. It is quite clear from recent site selection work that labor force issues, particularly current wages, availability of skilled labor, and quality of the work force are all very important in their decision process.

This report provides ODC with information that can be given directly to companies seeking a location in Odessa.

If you would like to read FCG’s Wage/Labor analysis in its entirety, you can download it from our website here under Wage Analysis.


By: Wesley BurnettDirector of Economic Development for the Odessa Chamber of Commerce

“I write this blog to provide businesses and site selectors from across the country with a source of current information about the benefits and resources the city of Odessa has to offer.”Wesley