The oil and gas industry is currently a hot job market.
That’s according to Tom Twinn, head of contract procurement, oil and gas, Europe and Africa at Petroplan, who told Rigzone that “a number of factors” are driving this trend.
“The first and most obvious is that there have been billions of dollars of projects that have been delayed due to the Covid-19 pandemic, so there is an artificial increase in demand while the delayed projects are being delivered ” Twinn said.
“Strong oil/gas prices post-pandemic are also a factor as operating companies grow in confidence with significant investments being made to capitalize on the strong market,” Twinn added.
“Another factor is that over the last five years the oil and gas industry has been hemorrhaging talent into the renewables sector, which means that sometimes the best talent is no longer available,” he continued.
“The supply of graduate engineers seeking careers in the oil and gas industry has also been greatly affected as we see continued investment in renewable projects as countries move to establish a portfolio of ‘diversified energy,’ he said.
Twinn also noted that the industry is still experiencing the ramifications of the 2014/2017 recession.
“At that time, we lost a large number of people to other industries and experienced a substantial reduction in entrants to the industry due to a lack of demand during the collapse of global oil and gas prices,” he said.
Offering his opinion, Brian Binke, managing director of Birmingham Group, a subsidiary of Sanford Rose Associates, said, “in my assessment, the oil and gas industry currently operates within the market of job seekers.”
“There are a significant number of job openings, but a limited pool of qualified candidates to fill these positions. This disparity is particularly pronounced among younger individuals,” Binke told Rigzone.
Outlining some “major factors” he believes are contributing to this trend, Binke highlighted “industry perception.”
“Today’s younger generation gravitates toward fields they perceive as more dynamic and forward-looking, such as biotech, high-tech and pharmaceuticals,” he said.
“They often see these sectors as more innovative and attractive compared to oil and gas,” he added.
Another factor Binke flagged was “environmental concerns.”
“The oil and gas sector, rightly or wrongly, carries certain stigmas, particularly regarding its environmental impact in the age of climate change,” he said.
“While some criticisms are valid, others can be attributed to political dynamics. It’s worth noting that many younger individuals tend to have progressive views on environmental issues, and as such sectors associated with fossil fuels may not appeal to them,” he added.
“Demographic changes” were another factor highlighted by Binke.
“The oil and gas workforce is aging, leading to a higher rate of retirements. This, combined with the declining influx of younger talent for the reasons mentioned above, is contributing to the market’s demand for ‘predominant occupation,’ he said.
When asked if the oil and gas industry is in a job market or an employer market right now, Dave Mount, president of Louisiana-based OneSource Professional Search, said, “Having given that oil prices have moderated to a good range for most E&P companies to be profitable, we find that it is still a candidate short market in production/reservoir engineering roles, along with high-end technicians in the same reservoir/production disciplines, along with an increased demand for regulatory engineers and experienced technicians.”
“Demand for geoscientists has increased in the offshore and carbon capture areas, but there is still an oversupply of qualified candidates allowing hiring companies to be more selective in who they hire,” Mount added.
“The drilling and completions market has balanced out with a slight advantage for the contractor/buyer market versus a candidate-driven market. This makes sense as many oil and gas operating companies adhere to the its investor-driven directives to live within cash flow, not take on much additional debt to grow, return profits/dividends to investors, and not initiate overly ambitious exploration/drilling programs.” it continued.
Mount also noted that larger companies are trying to balance profitability/cash flow with the energy transition and corporate carbon capture goals, which he said makes their strategy of hiring experienced professionals in the divisions ‘hydrocarbons is “very dispersed”.
OneSource Professional Search partner and vice president Henry Shurlds told Rigzone he agreed with Mount’s “overall observations about experienced professional/technical staff.”
“Demand for experienced talent remains on the soft side in my view compared to years past in a rising commodity environment,” he added.
“The rig count in the U.S. today is down more than 100 (mostly land rigs) compared to this time last year. Utilities remain under pressure from carriers to keep the cost of services low as they continue to struggle with a limited pool of labor to work in the field,” Shurlds said.
To contact the author, please send an email andreas.exarcheas@rigzone.com
