Whilst there’s life in the oil and gas industry yet, there’s no hiding from the changes that are already taking place – and those set to come.
According to GlobalData’s Thematic Intelligence report, the oil and gas sector is likely to feel even more pressure in the year ahead, as governments around the world strive to reach clean energy targets.
Naturally, this begs the question: what steps are they taking to adapt to the global energy shift?
Let’s take a look at the state of play…
Changing tack
Major oil companies such as Shell, BP, and TotalEnergies have committed to net-zero targets by 2050, and are embarking on a highly publicised energy transition. But what’s the reality for oil and gas workers?
Well, depending on where they’re at in their career journey, transferable skills are a popular topic of discussion.
In fact, many large oil companies are investing in their staff to ensure they can be part of the transition, whilst seeking new employees and contractors with the skills to adapt too.
Changing tack is more feasible for oil giants, as they have the infrastructure and financial security in place, unlike smaller enterprises.
It’s also worth noting that these global firms are facing a lot more scrutiny and pressure to become cleaner energy sources. To maintain their competitive edge, they can’t afford not to deliver on their promises.
Though, the big players in the oil game aren’t the only ones affected by the energy transition – smaller firms also face the decision of where to go next.
Generally, it’s widely expected most of these companies will eventually wind down, especially those with more mature workers who are close to retiring.
Capitalising on technology advances
To better equip themselves for future energy market demands, oil firms are utilising technology developments to balance their emission-intensive holdings, by incorporating renewable energy projects into their portfolio.
For example, natural gas provider, Exxon Mobil, is one of the first industry leaders to pursue carbon capture and storage (CCS) technology.
And other global firms like BP and Equinor are homing in on green hydrogen energy, signalling the direction we’re expected to bear witness to over the next decade or so.
Retaining existing talent
With the industry facing huge changes, it’s becoming a less desirable career path, and instead, businesses are focusing on retaining their existing workforce.
There are fewer new starters joining the sector, yet contractors remain content in their job, as long as the salary and benefits fit the bill.
So, is there a sense of anxiety amongst workers? Not massively. Most of the global oil and gas workforce is a more mature portion of the population, with many likely to reach retirement before we say goodbye to such resources completely.
Plus, as previously mentioned, firms are already in the midst of retraining their staff, meaning that ultimately, the energy transition is well underway.
Oil and gas workforce solutions from WRS
Whilst it’s clear that the oil and gas industry will continue to go through a series of changes during the energy transition, for now, it’s full steam ahead.
So, if you’re looking for experienced and talented workers for your latest project, get in touch with WRS today.
