Think it’s Bad Now? Talent Crunch in Oil and Gas Expected to Get Worse

Nearly half of oil and gas professionals have said that they expect to leave the industry in the next 5 years, according to a new survey out earlier this week.

The survey, conducted by recruitment firm Brunel and Oilandgasjobsearch.com, found that in, 56% of those working in oil and gas said they would seek employment in renewables up from 38%.

Over three quarters (82%) of recruiters have had at least 10% of their open positions unfilled for over three months. Drilling & Well delivery (14%), and Geoscience (12%) are the most difficult roles to fill.

The report comes after a volatile few years for the oil and gas industry. Oil prices collapsed in the wake of the first wave of the coronavirus pandemic and lead many oil and gas majors to cut thousands of jobs. As the oil price has recovered, many are finding it difficult to recruit those workers back – a phenomenon that cuts across industries but has particular bite within oil and gas.

That’s because the skilled worker shortage also hints at a wider shift in the industry, as baby boomer workers retire and climate change and increasing regulatory pressure on oil and gas operators shift the focus to decarbonization and renewables. Many younger workers are avoiding careers in oil and gas – some on ethical and environmental reasons and others because it is seen as an industry without a long term future – making recruiting new talent more challenging.

There is one bright spot – investment in renewable energy by Oil and Gas major has more than doubled since 2019/20, according to analysis by Wood Mackenzie,  a global research and consultancy business.

The Euro Majors are now projected to spend an average of US$4 billion a year – almost 25% of total investment – in renewables such as wind and solar energy. US energy giants have also joined the low carbon fray, albeit at a lower average rate of approximately 10% of total investment.

That gives oil and gas companies an opportunity to reallocate – rather than lose - their top talent as the energy transition gains momentum.