Consultants Deloitte & Touche have analyzed how employment trends in the oil & gas industry are resulting in a potential crisis of expertise.
With booming demand and rising prices, the American oil and gas exploration and production upstream business may be facing a talent crisis, according to a new report from Deloitte Research. The talent shortfall could impact America’s ability to find and develop new oil and gas resources that are critically needed to keep pace with market demand.“The gap between accelerated growth of upstream companies and available talent to do the work is widening at an alarming rate,” says James R. Sowers, director, Human Capital Advisory Services, Deloitte Consulting LLP. “We already are seeing some companies turning away exploration and production projects for lack of available employees. If left unchanged over the longer term, this trend could significantly impact oil and gas production.”
Since the wave of mergers and acquisitions starting in the 1980s, the U.S. upstream oil and gas industry has dropped an astounding 1.1 million jobs. Today, the average age in the oil and gas industry is 49, among the oldest of any industry, and within the next five years about 40-60 percent of these aging geoscientists and petroleum engineers will be eligible to retire. In addition, fears of layoffs, negative perceptions about environmental and the cyclical nature of the industry have proven to be strong deterrents in being able to attract the next generation of bright, talented workers.
So few Americans seem to know or care how one of our most vital industries has been hollowed out since the 1980s; they just prefer to howl when pump prices climb. Maybe if self-serving politicians would stop vilifying the industry at every turn, bright young people would want to work in an industry that makes the world go around.
Full report (pdf) via Deloitte Research.
Posted by Alan at December 17, 2005 08:57 AM