Oil and Gas Job Market Flourishes Amidst Project Delays and Talent Shortage
The oil and gas industry is currently experiencing a surge in demand for jobseekers. According to industry experts, several factors are contributing to this trend. Firstly, the Covid-19 pandemic resulted in the delayed delivery of numerous projects, leading to a temporary increase in demand to make up for lost time. Additionally, the industry has been bolstered by strong oil and gas prices following the pandemic, prompting operating companies to invest heavily and take advantage of the favorable market conditions.
Another factor influencing the job market is the talent shortage caused by the industry’s loss of skilled professionals to the renewables sector over the past five years. The increasing focus on renewable energy projects has also led to a decrease in the number of graduate engineers seeking careers in oil and gas.
The industry is still feeling the effects of the 2014-2017 downturn when many people left for other industries and the demand for oil and gas plummeted. This resulted in a reduced number of entrants into the industry.
Brian Binke, CEO of the Birmingham Group, a Michigan-based recruitment firm, believes that the oil and gas industry currently operates in a jobseeker’s market, as there is a significant number of job openings but a limited pool of qualified candidates. Binke attributes this disparity to several factors. The perception of the industry among younger generations favors more dynamic and forward-looking fields such as biotech, high-tech, and pharmaceuticals. Environmental concerns related to the industry’s impact on climate change also deter young individuals from pursuing careers in oil and gas.
Demographic shifts, including an aging oil and gas workforce and a decrease in younger talent entering the industry, have further contributed to the jobseeker’s market.
Dave Mount, President of Louisiana-based OneSource Professional Search, provides additional insights into the job market, stating that there is still a shortage of qualified candidates in certain roles such as production/reservoir engineering and regulatory engineering. However, in drilling and completions, the market leans slightly towards employers rather than candidates.
Larger companies are grappling with balancing profitability and cash flow with the goals of energy transition and carbon capture, making their hiring strategies inconsistent and scattered in the hydrocarbon divisions.
Despite a rebound in oil prices and a positive outlook for the industry, the demand for experienced professionals remains relatively soft, which can be attributed to the constrained labor pool and decreased rig count.
Overall, the oil and gas industry presently offers significant job opportunities but faces challenges in attracting qualified candidates, particularly among the younger generation. The industry’s image, environmental concerns, demographic shifts, and previous downturns have contributed to the jobseeker’s market. As the industry continues to evolve, it must address these challenges to attract and retain top talent.
