PetroPlan survey finds oil and gas recruitment on the mend

LONDON -- A review of the employment environment in the energy sector by Petroplan has found that, despite a major contraction in the value of the energy employment market over the past two years, global oil prices are now around the level where demand for talent looks set to pick up again.

Respondents from 35 organizations from across the major global oil and gas hubs participated in the survey, the aim of which was to gain insight from the industry’s employers on the prospects for recovery, and how this would impact on hiring in the near future.

Contract staff are likely to be in the vanguard of any recovery, with over two-thirds of respondents expecting greater use of contractors, bringing with them the flexibility and cost control, which are critical in the current business environment. The use of Western expat contractors--long seen as a mainstay of the oil and gas industry--looks set to decline; however, as lower-cost local talent upskills and nationalization targets take effect.

Activity is expected to pick up on onshore rigs first (in the U.S., then Middle East, Asia and Africa), followed by shallow water projects. Experienced technical talent, as well as those with a combination of technical and financial skills, look set to be most in demand in any recovery. Mechanical and chemical engineers, project managers and IT experts were among the shortage roles cited in the survey.

If anything, the oil price downturn since mid-2014 has increased the demographic challenge the industry faces, with experienced middle managers laid off and millennials put off entering the industry. While two-thirds of respondents recognize the challenge as a major obstacle to growth, there was a feeling that multi-skilling and up-skilling the existing workforce will help to address it.