Will There Be a Hiring Boom in Oil and Gas in 2023?
According to Gladney B. Darroh, the founder and president of Houston based Piper-Morgan Search, there will not be a hiring boom in the oil and gas sector in 2023.
“There will continue to be market-sensitive, even paced hiring for new grads and experienced hires,” Darroh told Rigzone.
“For new grads it is because they are replenishing a company’s pipeline for talent and talent development as existing employees move up the career ladder or age out,” Darroh added.
“For experienced hires it is because they offer specific play/regional talent to fill a void created by a departure from the company, or to staff a role in a brand new area of interest of the company for which there is no existing talent, or hired into a newly created position with a start-up,” Darroh continued.
The Piper-Morgan Search founder told Rigzone that, “from a macro point of view, world politics, sectional strife in the mid-East and Africa, and iterations in the U.S. and other global economies create the kind of uncertainty that typically tamps down hiring”.
When asked if the oil and gas industry was poised for a hiring boom this year, Chad Spencer, the CEO of Houston headquartered Hazeltine Executive Search Partners, a member of the Sanford Rose Associates Network, said, “despite some recent positive developments in the sector, there are several factors that suggest a hiring boom may not be in the cards for the industry this year”.
One key factor is the shift toward more disciplined spending by oil and gas companies, according to Spencer.
“In recent years, many companies have prioritized drilling within cash flow and returning value to shareholders, rather than simply drilling for the sake of drilling,” he told Rigzone.
“This focus on financial discipline has helped many companies weather the recent downturn in the industry, but it has also meant that they are less likely to ramp up hiring in the near future,” he added.
Spencer said another factor that may limit hiring in the industry is the ongoing skills gap.
“Even if companies were inclined to hire more workers, they may struggle to find qualified candidates to fill the roles,” he stated.
“The boom-and-bust cycles of the industry have led to many workers leaving the sector or choosing not to pursue careers in oil and gas. This has created a shortage of experienced workers in many areas, from geology and engineering to operations and maintenance,” he added.
“Moreover, the ongoing energy transition may further reduce the demand for traditional oil and gas jobs in the long run. As the world shifts toward renewable energy sources, the demand for workers in sectors like solar, wind, and battery storage may grow faster than the demand for oil and gas workers,” Spencer continued.
The Hazeltine Executive Search Partners CEO said the recovery in oil prices and increased investment in exploration and production “may create some hiring opportunities in the short term”.
“However, it remains to be seen whether these factors will be enough to spur a full-fledged hiring boom in 2023,” he added.
“While there are some reasons to be optimistic about the oil and gas industry, it may not be wise to expect a major hiring boom in the near future. Companies are prioritizing financial discipline, while the skills gap and the ongoing energy transition may limit the pool of available workers,” he added.
“As always, it’s important to keep an eye on the trends and developments in the industry to stay informed about the latest hiring prospects,” Spencer went on to state.
To contact the author, email andreas.exarheas@rigzone.com
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