The issue of employment in the oil and gas industry has been a hot topic for a while, and a skills shortage has been identified as a top barrier to growth for the industry, even overtaking important challenges such as rising costs.

At its 16th Forum in India in 2018, the International Energy Forum (IEF), in collaboration with The Boston Consulting Group, described the shortage of new talent in the industry as an acute labor crisis. 50 percent of the industry’s workforce is expected to retire in the next five years, and the ratio of retirees to new employees who will enter the industry workforce is a worrisome 2:1.

Part of the problem is the industry’s growing unattractive appeal to the younger generation, which tends to perceive the industry as old-fashioned and redundant.

Digitalization Creates a New Outlook

Technology, particularly digitalization, may well provide the solution. While many see a jobless future as an inevitable consequence of technological developments, in reality, novel skills will be required — and new opportunities will be created accordingly. Advances in machine learning and robotics are continuing to push unemployment rates down to historical lows.

Digital technology will bring significant positive changes to the nature of employment in the oil and gas sector in several ways. First and foremost, it will help the industry establish a more modern image that is more appealing to younger generations.

The technology used today throughout the supply chain to get the oil and gas from the wellhead to the customer is among the most sophisticated technologies deployed in any industry, and a far cry from the early days of oil and gas activities. Just think of all the cutting-edge operations required to drill in remote areas, thousands of meters below water level and seabed, or the super-fast, gigantic computers developed to process geological and seismic data!

The oil and gas industry is a giant digital industry itself, working closely with the most established technology providers and platforms like Google, which should make it particularly attractive to young graduates. The sector has a natural fit with these digital platforms because of the massive amount of complex data it produces from every single well, from different regions and projects on a daily basis.

New Technology Requires Different Skillsets

Digital technologies’ application in the oil and gas industry will modify the skillset required to complete a specific task, which in turn can enhance the industry’ appeal to graduates. Ron Beck, industry marketing director at AspenTech, explains: traditionally, the longer the experience one had, the better the insights he/she would possess to make important decisions. Today, digital technologies, particularly machine learning, can process massive data collected from different projects and applications within a very short period of time — and then places that intelligence in the hands of smart young graduates, allowing them to make real decisions (including some that couldn’t have been made before) more effectively and efficiently. Decades of experience become increasingly less relevant.

Furthermore, only a few years ago, a typical petroleum engineer would spend a significant proportion of his/her time organizing data, with the remaining time spent on analysis. Today, thanks to digitalization, that same engineer can focus on the analysis while leaving the machine to handle the data. The outcome is, again, a faster, more efficient and creative decision-making process. 

Then there is the additional benefit of greater mobility and transfer of skills. Since digital technology is not exclusive to the oil and gas industry, new entrants to the industry will have more mobile skills that they can apply across various industries. This reduces their vulnerability to the price cyclicality of the industry, which has acted as a disincentive for some people to enter the sector.

Flexibility Is the Key – for Workers and Management

Technology on its own can have limited effects. To fully take advantage of key innovations, existing skills within the industry need to be upgraded. Petroleum engineers, for instance, who typically have a technical background, need to develop new skills requiring them to understand coding and data science. Also, academic institutions should revisit their module offerings and adapt their teaching practices to the digital world’s needs.

Equally important is the commitment of senior management within oil and gas companies to fully embrace the digital revolution. The International Energy Agency found that risk-averse management is one of the leading causes behind the relatively slow adoption of new technologies, irrespective of their potential, in the oil industry.The deployment of innovative technologies in such “cautious” companies requires high-level management approval, which often leads to a slow pace of modernization. A more flexible company culture that supports faster technology development and deployment will further help the industry to avert a potential employment crisis.

411 Viewed
Categories: NEWS UPDATE


michael · June 25, 2020 at 1:09 am

Thanks a lot

michael · June 25, 2020 at 1:23 am

Thanks a lot · June 26, 2020 at 3:57 am

In fact no matter if someone doesn’t be aware of then its up to other visitors that they will help,
so here it occurs. · June 26, 2020 at 4:10 pm

This paragraph is genuinely a fastidious one it helps new the web people, who are wishing in favor of blogging. · June 26, 2020 at 7:33 pm

Thanks a lot for sharing this with all folks you actually recognise what
you’re speaking approximately! Bookmarked.
Kindly additionally consult with my web site =). We will have a hyperlink change
arrangement among us · June 27, 2020 at 2:36 am

Hello, its pleasant piece of writing regarding media print, we
all know media is a enormous source of data. · June 27, 2020 at 3:21 am

I believe this is among the such a lot significant info for me.
And i’m satisfied reading your article. But wanna observation on some general things, The website style
is ideal, the articles is actually nice : D. Excellent activity, cheers

cbd oil that works 2020 · June 27, 2020 at 8:35 am

Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest
twitter updates. I’ve been looking for a plug-in like this for quite
some time and was hoping maybe you would have some experience with something
like this. Please let me know if you run into anything. I truly enjoy reading your
blog and I look forward to your new updates.

cbd oil that works 2020 · June 27, 2020 at 4:03 pm

Hello, always i used to check blog posts here early in the morning, as i love to learn more and more.

cbd oil that works 2020 · June 28, 2020 at 12:20 am

Does your website have a contact page? I’m having a tough time
locating it but, I’d like to send you an e-mail. I’ve got some suggestions for
your blog you might be interested in hearing.
Either way, great blog and I look forward to seeing it improve over time.

cbd oil that works 2020 · June 28, 2020 at 1:23 am

Asking questions are genuinely fastidious thing if you are not understanding something fully, but this post provides nice understanding even.

cbd oil that works 2020 · June 29, 2020 at 5:26 am

My brother recommended I might like this blog. He used to be totally right.
This post truly made my day. You cann’t believe just
how so much time I had spent for this info! Thank you!

cbd oil that works 2020 · June 29, 2020 at 10:21 am

Hi there, just wanted to say, I liked this post.
It was inspiring. Keep on posting!

best web hosting company · July 16, 2020 at 2:19 pm

I all the time emailed this weblog post page to all my friends,
for the reason that if like to read it afterward my friends will too.

best web hosting sites · July 17, 2020 at 10:30 pm

Thank you for the good writeup. It in fact was a
amusement account it. Look advanced to far added agreeable from you!

By the way, how could we communicate?

hosting services · July 18, 2020 at 4:46 am

For hottest information you have to go to see world-wide-web and on web I found this site
as a most excellent web site for latest updates.

web hosting reviews · July 21, 2020 at 9:45 pm

I used to be recommended this website by means of my cousin. I’m not sure whether this submit is written via him as no one
else realize such exact approximately my problem. You are
amazing! Thank you!

webhosting · July 23, 2020 at 2:12 am

We are a group of volunteers and starting a new scheme
in our community. Your web site provided us with valuable info to
work on. You have done an impressive job and our whole community will be thankful to you.

hosting services · July 25, 2020 at 11:52 pm

You should be a part of a contest for one of the highest
quality websites on the web. I’m going to highly recommend this website!

website hosting companies · July 26, 2020 at 8:26 pm

Spot on with this write-up, I actually feel
this amazing site needs a lot more attention.
I’ll probably be returning to read more, thanks for the advice!

american airlines · July 27, 2020 at 10:59 am

excellent issues altogether, you just gained a logo new reader.
What could you recommend about your submit that you
made some days in the past? Any sure?

cheap flights with jet2 uk · July 28, 2020 at 1:15 am

Yes! Finally someone writes about air flights cheap.

airline flights · July 29, 2020 at 7:25 am

Hello There. I found your blog using msn. This is a very well written article.
I will be sure to bookmark it and come back to read more of your useful info.

Thanks for the post. I will definitely comeback.

adreamoftrains best web hosting 2020 · July 30, 2020 at 10:32 am

Hi there, I enjoy reading all of your post. I like to write a little comment to support you.
adreamoftrains best hosting

kayak · July 31, 2020 at 2:39 am

This is my first time pay a visit at here and i
am genuinely impressed to read everthing at one place.

website hosting companies · August 5, 2020 at 3:09 pm

Hello everybody, here every one is sharing these know-how, thus it’s good to read this webpage,
and I used to visit this webpage daily.

web hosting reviews · August 5, 2020 at 3:41 pm

Hi, I check your blog regularly. Your humoristic style is witty,
keep up the good work!

best web hosting · August 6, 2020 at 7:13 pm

Hi it’s me, I am also visiting this website daily, this
web site is genuinely pleasant and the visitors are
actually sharing pleasant thoughts.

web host · August 6, 2020 at 7:15 pm

Its like you learn my mind! You seem to understand so much approximately this,
such as you wrote the e book in it or something. I think that
you can do with a few % to power the message house a bit,
but instead of that, this is fantastic blog.
An excellent read. I’ll definitely be back.

best website hosting · August 7, 2020 at 4:48 am

I believe everything said made a bunch of sense. However,
what about this? what if you added a little information? I mean, I don’t
want to tell you how to run your website, however what if you
added a title to possibly get people’s attention? I mean Digitalization in Oil and Gas
Is Changing the People Equation – DASOBAM is kinda boring.

You ought to look at Yahoo’s home page and see
how they create news headlines to grab people interested.
You might try adding a video or a related pic or two to grab readers excited
about what you’ve got to say. Just my opinion, it could make your
posts a little bit more interesting.

web hosting companies · August 7, 2020 at 11:55 am

I’m impressed, I have to admit. Seldom do I come across a
blog that’s both educative and interesting, and let me
tell you, you’ve hit the nail on the head. The issue is an issue that not enough folks
are speaking intelligently about. I’m very happy that I came across this in my search for something concerning this.

Leave a Reply

Your email address will not be published. Required fields are marked *