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What’s The Outlook For Oil And Gas In 2023?

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Changes to the oil and gas industry have dominated headlines over the past few years with energy transition legislation and green initiatives. In more recent months, we’ve seen discussions around its cost. But since the Russian invasion of Ukraine in March 2022, demand for oil and gas has shot up around the globe.

To put it simply, the industry isn’t going anywhere just yet. 

In fact, there is still plenty of interest in the energy resource, with many lucrative regions in countries like the USA, Tanzania, and Uganda. 

We spoke to our Global Business Development Manager, Chris Morton-Collings, about what the industry can expect in 2023. Chris highlighted “Oil and gas isn’t going anywhere – there is still a good amount of roles in that space and, with a growing focus on training local talent, we’re developing an in-country solution by staffing up with a 51% Ugandan and 70% Tanzanian workforce.”

So, what other valuable insight did Chris share on the sector’s outlook for 2023?

1. Demand for local talent to soar 

As more and more projects get off the ground in East Africa, oil and gas companies are finding they have to hire a significant percentage of local talent to facilitate the project. 

For example, 70% of the workforce for the East African Crude Oil Pipeline (EACOP) must be Ugandan – meaning increased demand for training local talent. And as the project continues, companies will need to upskill more Ugandan workers. 

WRS has a dedicated training facility associated with WQS (our East Africa entity), The Assessment and Skilling Center (TASC), providing the opportunity to source local talent directly and teach vital skills to fill the ever-widening gap. 

2. Growing focus on renewables

The shift to renewables continues to gain momentum as governments around the globe boast support with new policies and initiatives. In fact, the IEA forecasts global renewable capacity to increase by 75% between 2022 -2027. So, it comes as no surprise that we’re expecting to see further investments in natural gas and liquified natural gas (LNG) projects. 

At the start of March, Shell and Norwegian firm Equinor finalised talks with the Tanzanian government on their $30 billion LNG terminal. 

Regulatory matters have delayed the project for years. But as the development of Tanzania’s vast offshore gas resources gets underway, enhancing global supplies and offering more work in the industry, it finally has the go-ahead. 

3. Attention turns towards upstream 

The global upstream industry was predicted to reach free cash flows of $1.4 trillion by the end of 2022 – its highest-ever figure. 

This prediction was mostly due to the sector’s capital discipline, focusing on cash flow and payout. 

Fast forward to early 2023, and all eyes are on upstream companies to see if they will continue to payout shareholders or increase their reinvestment rate in hydrocarbons to provide affordable energy. 

4. Merger and acquisition momentum continues 

27% of executives name high and stable energy prices as the key to sustaining the merger and acquisition movement in 2023 – with capital discipline and an uncertain economic environment maintaining the status quo. 

Nonetheless, the challenging financial state of play has meant buyers altering strategies and more cautious decisions. 

So, over the next 12 months, we expect the following trends: 

  • Leveraging the momentum on energy security

  • Accelerating the energy transition 

  • Reducing operational emissions 

  • Mitigating inflationary pressures

Supporting the oil and gas industry 

Looking to find your next role in the oil and gas sector? Or do you need an experienced oil and gas contractor to work on your overseas project? 

WRS works across the globe to provide end-to-end workforce solutions that suit clients and candidates. Our experts can take care of recruiting, onboarding, and mobilising your workforce. 

We also offer unrivalled aftercare, keeping up to date with both parties to make sure everything is as it should be. 

Our East Africa entity, WQS, is a joint venture between Worldwide Recruitment Solutions and Q-Sourcing Servtec. Bringing together local capabilities and international reach - WQS  provides workforce solutions for the oil and gas industry in Uganda and Tanzania. 

Interested in finding out more? If you’re seeking support from WRS, get in touch with our UK team now. 

Alternatively, for WQS, contact either our Tanzania or Uganda office