According to Gladney B. Darroh, founder and president of Houston-based Piper-Morgan Search, there will not be a hiring boom in the oil and gas industry in 2023.
“There will continue to be market-sensitive hiring, even at a pace for fresh graduates and experienced hires,” Darroh told Rigzone.
“For new graduates it’s because they’re filling a company’s pipeline for talent and talent development as existing employees move up the career ladder or age out,” Darroh added.
“For experienced hires it’s because they offer game/region specific talent to fill a void created by an exit from the company, or to fill a role in a new area of interest within the company for which there is existing talent, or hired into a newly created position with a start-up,” Darroh continued.
The founder of Piper-Morgan Search told Rigzone that, “from a macro perspective, global politics, sectoral conflicts in the Middle East and Africa and iterations in the US and other global economies create the kind of uncertainty that usually reduces hiring.”.
Asked if the oil and gas industry is poised for a hiring boom this year, Chad Spencer, managing director of Houston-based Hazeltine Executive Search Partners, a member of the Sanford Rose Associates Network, said: “despite some recent positive developments in the sector. , there are several factors that suggest a hiring boom may not be in the cards for the sector this year”.
A key factor is the shift toward more disciplined spending by oil and gas companies, according to Spencer.
“In recent years, many companies have prioritized drilling within cash flow and returning value to shareholders, rather than simply drilling for the sake of drilling,” he told Rigzone.
“This focus on financial discipline has helped many companies weather the recent industry downturn, but it has also meant they are less likely to increase hiring in the near future,” he added.
Spencer said another factor that may limit hiring in the industry is the ongoing skills gap.
“Even if companies were inclined to hire more workers, they may struggle to find qualified candidates to fill the positions,” he said.
“The industry’s boom and bust cycles have caused many workers to leave the sector or choose not to pursue a career in oil and gas. This has created a shortage of workers with experience in many areas, from geology and engineering to operations and maintenance,” he added.
“Furthermore, the ongoing energy transition may further reduce demand for traditional oil and gas jobs in the long term. As the world shifts to renewable energy sources, the demand for workers in sectors such as “Solar, wind and battery storage can grow faster than the demand for oil and gas workers,” continued Spencer.
The CEO of Hazeltine Executive Search Partners said recovering oil prices and increased investment in exploration and production “may create some near-term hiring opportunities.”
“However, it remains to be seen whether these factors will be enough to spur a full hiring boom in 2023,” he added.
“While there are some reasons to be optimistic about the oil and gas industry, it may not be wise to expect a huge hiring boom in the near future. Companies are prioritizing financial discipline, while the skills gap and the ongoing energy transition may limit the pool of available workers,” he added.
“As always, it’s important to keep an eye on industry trends and developments to stay informed about the latest hiring prospects,” Spencer said.
To contact the author, please send an email andreas.exarcheas@rigzone.com
