From oil to opportunity: Crafting the future energy workforce landscape

Molly Determan, President, Energy Workforce & Technology Council

For many, the idea of working in oil and gas garners flashback images of dusty job sites filled with rugged machinery and manual laborers seeking to strike it rich in black gold. They picture oil rigs towering over landscapes with plumes of steam against the backdrop of the horizon.  

But today’s oil and gas industry looks much different than that of 50 years ago, not only from an equipment perspective but from a workforce standpoint as well. Fast forwarding to the present day, we are utilizing cutting-edge technology, driving innovation and growth at an unprecedented rate. Our workforce is more diverse than ever, and jobs continue to provide higher-than-average salaries globally. And that’s just the start. 

Energy job growth. Despite the outbreak of several conflicts that could send the global oil and gas industry reeling, we continue to see a surge in energy jobs. Meanwhile, the United States economy is seeing record-low unemployment rates, leading to more and more competition for highly skilled and qualified employees. When looking to recruit the workforce of tomorrow, we have quite the challenge before us. 

Thinking back to October 2021, the U.S. and global society stood at a crossroads. As the pandemic raged on, we watched a systemic shift in global dynamics occur across every industry imaginable. Here in the oil and gas industry, jobs were at an all-time low, registering half their peak by 1982 figures, with the Energy Workforce & Technology Council reporting 584,320 OFS jobs compared to 766,301 in 2019. Our market was spiraling, with prices driven down by a lack of demand, due to global shutdowns. The lingering effects of the shale revolution seemed to quickly fade away. 

Now, at the close of 2023, the echoes of demand destruction have faded, and the oil and gas industry is experiencing a renaissance yet again, serving as a testament to our industry's long-term resilience and adaptability. With jobs rapidly returning, the OFS sector is only 52,000 jobs away from returning to 2019’s pre-pandemic levels. Further, oil production continues to grow, with the U.S. hitting a new peak output of 13.23 MMbpd (EIA, 2023). 

But the challenge remains: How do we combat this archaic image that has permeated the minds of the workforce? It begins with telling our story and working collaboratively to change the perception of the industry. Far too often, oil and gas is subjected to unjustified vilification, pitting man versus the environment, when the reality couldn’t be further from the truth. 

Since the drilling of the Drake well in 1859 to the shale revolution and today’s technological transformation, the oil and gas industry has been powering the world economy, serving as the bedrock of global energy demand and driving unparalleled advancements in modern civilization. During the global pandemic, innovation took hold. Technological advancements became the beacon guiding energy operations through the darkness. From automation to data analytics, technology has revolutionized processes, optimized efficiency and reduced operational footprints. We are now competing against big tech in the job market, with demand for individuals with specialized skills, such as software engineers and programmers, at an all-time high. 

Meaningfully, how we talk about our industry matters. To compete, we must not only match the workforce's desires but also present ourselves as an industry that innovates and powers the global economy. 

Unfortunately, during the downturn, the oil and gas industry faced an exodus of specialized workers, leaving a talent void, but we didn't falter. Instead, we overcame again, introducing retraining and upskilling initiatives to retain talent. For companies, who continue to embrace such tactics, studies suggest that providing upskilling training provides six times the cost savings versus hiring a new worker. Further, 34% of positions in energy companies are emerging roles that the existing workforce will need to help fill (Accenture, 2023). Accordingly, reskilling has become the cornerstone of rebuilding a workforce that will meet the needs of the evolving energy landscape. 

When it comes to the next generation of the energy workforce, we must look at how the desires of each generation have shaped the organizations they are leading. Millennials comprise the largest share of the full-time workforce, with 49.5 million workers, followed by Generation X at 42.8 million and Baby Boomers at 17.3 million (Axios, 2023). 

Attracting younger workers. As Generation Z begins to transition from college into the workforce, they already comprise 17.1 million workers (Axios, 2023). However, we are seeing a significant transformation unfold, with the industry embracing an all-of-the-above approach to energy production. And contrary to the mainstream media’s narrative, oil and gas companies are leading this charge. Our mission is to communicate this energy expansion to the next generation, exemplifying that if you want to create a lower-carbon future, there is no better industry to be a part of all while continuing to provide affordable, reliable access to energy supply. As a career path, the oil and gas industry opens doors, generating an unbeatable network with the opportunity to travel and see the world while making an impact. 

Crafting the future energy workforce landscape is no easy feat; however, since the days of World War II, our industry has been a catalyst for change. The status quo will not cut it. Instead, our members are branching out, thinking outside the box by establishing partnerships with tech companies or creating in-house innovation labs to create a culture of continuous technological innovation. 

From a cultural standpoint, not only are we enhancing diversity and inclusion efforts to attract broader talent pools, but we are also creating programs that foster mentorship and collaboration between seasoned industry experts and incoming talent to bridge knowledge gaps. By investing in STEM education and establishing internship and apprenticeship programs, companies are partnering with educational institutions to allow students to gain industry-specific knowledge and skills, making the next generation workforce ready. 

Further, we have to meet the next generation where they are at…online. From Shell’s innovative marketing campaign on Fortnite to Liberty Energy’s effective embrace of TikTok, we have an opportunity to leverage social media platforms that can widen the existing talent pool. Additionally, we can highlight the impressive array of career growth opportunities, work-life balance, and our positive societal impact that will resonate with younger generations. 

With 2024 right around the corner, the future of the energy workforce looks bright. As demand destruction echoes fade, job numbers rise, and energy demand climbs, we stand on the precipice of a reinvigorated energy landscape. Collectively, we are leading cutting-edge technology, fostering inclusive cultures, and powering global economies.  

We are increasingly empowering our workforce to be our ambassadors, telling the story of how oil & gas continues to be an opportunity for their families, becoming part of an industry dedicated to innovation, environmental stewardship, and global impact. Crafting the energy landscape of tomorrow is not just about recruitment; it's about changing the narrative and presenting an industry that resonates with the aspirations of the workforce of tomorrow.