Is Oil and Gas in a Jobseeker or Jobgiver Market Right Now?

The oil and gas sector is currently a jobseeker market.

That’s according to Tom Twinn - Petroplan’s Head of Contract Recruitment, Oil & Gas, Europe & Africa - who outlined to Rigzone that “a number of factors” are driving this trend.

“First and most obvious is that there have been billions of dollars of projects that were delayed through the Covid-19 pandemic - there is therefore an artificial increase to demand whilst the delayed projects are delivered,” Twinn said.

“The strong oil/gas prices post pandemic are also a factor, as operating companies grow in confidence with significant investments being made in order to capitalize on the strong market,” Twinn added.

“Another factor is that over the past five years the oil and gas industry has been haemorrhaging talent to the renewables sector, meaning that top talent is sometimes no longer available,” he continued.

“The supply of graduate engineers who are seeking careers in the oil and gas industry has also been substantially hit as we see continued investment into renewables projects as countries move to establish a diversified energy supply portfolio,” he went on to state.

Twinn also noted that the industry is still experiencing the ramifications of the downturn between 2014/2017.

“At that time, we lost a great number of people to other industries and we experienced substantially reduced entrants to the industry due to lack of demand during collapse of the oil and gas prices globally,” he said.

Offering his view, Brian Binke, the CEO of Michigan-based the Birmingham Group, an affiliate of Sanford Rose Associates, said, “in my assessment, the oil and gas industry currently operates within a jobseeker’s market”.

“There is a significant number of job openings, yet a limited pool of qualified candidates to fill these roles. This disparity is particularly pronounced among younger individuals,” Binke told Rigzone.

Outlining some “primary factors” that he believes contribute to this trend, Binke highlighted the “perception of the industry”.

“Today’s younger generation is gravitating towards fields they perceive as more dynamic and forward-looking, such as biotech, high-tech, and pharmaceuticals,” he said.

“They often view these sectors as more innovative and engaging compared to oil and gas,” he added.

Another factor Binke flagged was “environmental concerns”.

“The oil and gas sector, rightly or wrongly, carries certain stigmas, particularly regarding its environmental impact in the era of climate change,” he said.

“While some criticisms are valid, others can be attributed to political dynamics. It’s worth noting that many younger individuals tend to have progressive views on environmental issues, and as such, sectors associated with fossil fuels might not appeal to them,” he added.

“Demographic shifts” was another factor highlighted by Binke.

“The oil and gas workforce is aging, leading to a higher rate of retirements. This, combined with the decreased influx of younger talent due to the reasons mentioned above, contributes to the prevalent jobseeker’s market,” he said.

When asked if the oil and gas industry is in a jobseeker or jobgiver market right now, Dave Mount, the President of Louisiana based OneSource Professional Search, said, “considering that oil prices have moderated into a good range for most exploration and production companies to be profitable, we find that it’s still a bit of a candidate short market in production/reservoir engineering roles, along with higher end technicians in the same disciplines of reservoir/production, along with increased demand for regulatory engineers and techs with permitting experience”. 

“Demand for geoscientists has picked up in offshore and carbon capture areas, but there is still somewhat of an oversupply of qualified candidates enabling hiring companies to be more selective in who they hire,” Mount added.

“The market in drilling and completions has been balanced with a slight edge to an employer/buyer’s market vs a candidate driven market. This makes sense as many oil and gas operating companies are sticking to their investor driven directives of living within cash flow, not taking on much additional debt to grow, returning profits/dividends to investors, and not starting any overambitious exploration/drilling programs,” he continued. 

Mount also noted that larger companies are trying to balance profitability/cash flow with energy transition and carbon capture corporate goals, which he said makes their hiring strategy of experienced professionals in the hydrocarbon divisions “very scattered”.

OneSource Professional Search Partner and Vice President Henry Shurlds told Rigzone he was in agreement with Mount’s “remarks in general regarding experienced professional/technical staff”.

“Demand for experienced talent remains on the soft side from my line of sight compared with years past in a rising commodity environment,” he added.

“Rig count in the U.S. today is down by 100+ (primarily land rigs) compared to this time last year. Service companies remain under pressure from operators to keep their cost of services down while continuing to struggle with a constrained pool of labor to work in the field,” Shurlds went on to state.

To contact the author, email andreas.exarheas@rigzone.com