Four challenges affecting the US oil and gas industry

Four challenges affecting the US oil and gas industry

According to U.S. Energy Information Administration, by the end of 2013 the United States is forecasted to surpass Russia and Saudi Arabia in its production of petroleum and natural gas hydrocarbons, becoming the number one producer of oil and gas globally.

 

This has resulted in the dramatic demand for the expansion of the nation’s energy workforce, which has already experienced a 41% increase since the end of the recession in July 2013, as the Bureau of Labor Statistics declared.

 

The increased energy demand accordingly requires increased labour. For the next two years, four recruiting trends have been identified which will continue negatively affecting the industry, corporations’ bottom lines and the energy market as a whole.

 

The four recruiting trends are listed below.

 

  1. Boom in the energy industry: the demand for drilling operations is increasing with rising oil prices (in excess of $100 per barrel). In 2012, 2.1 million jobs in the energy sector were added to the U.S. economy and this figure is predicted to increase to 3.3 million by 2020.

 

  1. Shortage of talent: Increase in the demand for energy and enlargement of operations to exploit new opportunities has led to an increased need for professional engineers. U.S energy industry estimates that there will be a requirement for at least another 5,000 engineers by the end of this decade.

 

  1. Ageing workforce: Due to the low oil prices in 1980s, the experienced workforce in the industry is generally older and nearing the retirement age. This is exacerbating the current talent shortage pressure, increasing concern for the loss of knowledge and experience in the near future. It has been calculated that 50% of the current workforce will retire within the next 5-10 years.

 

  1. Emphasis on safety: Owing to the history of recent incidents, oil and gas companies are working on improving the reputation of the industry by developing tighter regulations which focus on safety and corporate responsibility. Overall, the energy industry has over a million employees nationwide and contributes to over 4% of the country’s GDP.

 

 

A challenging market for employers is emerging in which costs are rapidly growing and new resources are being discovered.

 

Adam Berk, Principal, Human Capital, Performance & Reward at Ernst  & Young, told Rigzone: "These four trends are global with talent being shifted throughout the world to fulfil the demand and support of these operations."

 

Sources:

 

http://www.rigzone.com/news/oil_gas/a/129918/Four_Oil_Gas_Recruiting_Trends_Plague_US_Industry

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

Caledonia Water bags infrastructure contract with Scottish Water

Caledonia Water bags infrastructure contract with Scottish Water

Caledonia Water Alliance – a Morrison Utility Services and AECOM joint venture – has landed a six-year extension on its water infrastructure contract with Scottish Water Following confirmation of the new agreements, from 2021-2027 Caledonia Water Alliance (CWA)

Skanska bags £135m revamp of Canary Wharf’s first office

Skanska bags £135m revamp of Canary Wharf’s first office

Skanska has won the contract to deliver the main structural revamp of Canary Wharf’s first major office at 30 South Colonnade in London Docklands.The major office deal is its second to be signed off this week after confirming an £83m contract with Royal London Asset Management to build

MWH Treatment secures key role on Scottish Water framework

MWH Treatment secures key role on Scottish Water framework

MWH Treatment (MWHT), together with partner Galliford Try, has successfully secured a six-year contract extension on Scottish Water's non-infrastructure framework for the Strategic Review 2021-27 (SR21) investment programme. MWHT, a sector leading solution provider operating across the UK water

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.