The gas and oil industry risks a workforce shortage as over 50% of the workers in this sector transition out of industry, a report by recruitment firms Brunel and oilandgasjobsearch.com revealed. According to Forbes, 43% of the workers want to exit the energy industry within the coming five years. There is a massive exit of workers with the potential to negatively affect the operations of this critical industry.
The Reeling Impacts of the Pandemic
The report comes after several years of volatility in the oil and gas sector. The collapse of the oil and gas process in the early days of the pandemic hit the industry hard. Because of the pandemic, oil and gas companies cut thousands of employees as they were tightening their budgets in response to the reeling effects. Now as the energy prices and demand are recovering worldwide, these companies are finding it challenging to recruit again.
Pressure to Tackle Climate Change
The mounting pressure on oil & gas corporations from activists, governments, and investors to tackle climate change, making the non-renewable source unattractive to younger professionals. With many workers leaning towards other industries, the oil and gas sector will likely continue seeing more workers exit. Students are also not enrolling for courses that would lead to professions in the industry. According to a report released by Deloitte, there was a drop of 15% - 21% in university graduates in fields like petroleum and geology between 2015 and 2019. Is because of environmental reasons, or they do not feel the sector has a long-term future? These factors will make it more challenging to source and recruit new talent.
Job Competition from Other Sectors
The other reason the oil and gas industry will face a shortage is the job competition from different industries. As with most industries, the oil and gas sector reduced its employees during the pandemic. After the pandemic, not every employee has returned or was available for work. Some have found jobs in other industries, which has reduced the oil and gas workforce.
The oil and gas industry has an aging workforce. The aging population in the oil and gas industry is also nearing retirement. Research by Deloitte estimated that about 50% of the oil and gas industry are tenured. Most of them are retiring in the next five years. Whether through retirement or job cuts, the oil and gas industry will face a massive loss of skill and institutional knowledge in the future.
Will the oil and gas sector be facing a talent crunch? The short answer is yes. According to multiple reports, the oil and gas sector should brace for more talent crunch in the future.