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LATEST THINKING


The talent well has run dry

OVERVIEW

Amid the unprecedented downturn in oil and gas markets, oil and gas operators significantly reduced their workforces. As a consequence, they are likely to face a major talent shortage—especially among petrotechnical professionals (PTPs)—when the market rebounds. This looming talent crisis could cripple their businesses.

Closing the pending talent gap will be tough. Digital innovations require new skillsets. At the same time, neither the PTPs who recently left the industry, nor recent college grads are willing or able to step up.

It’s critical for operators to devise new talent strategies today for tomorrow’s future workforce.

VIEW THE REPORT [PDF]

KEY FINDINGS

The petrotechnical workforce—which includes geoscientists and engineers—is the lifeblood of oil and gas companies’ exploration and production operations. Because of industry job cuts and retirements since 2014, operators will likely face a serious PTP shortage when oil production rebounds and investments in exploration and production grow.

Old talent acquisition strategies, which focused on hiring recent college graduates or rehiring employees that recently separated, won’t work. This time it’s different:

ENTIRELY NEW SKILLSETS ARE NEEDED
Digital innovations, coupled with new asset portfolios, will create new PTP roles and refine existing ones.

PTP TALENT WON’T COME BACK
Many PTPs have retired or accepted early retirement packages. At the same time, technology advances have accelerated such that the skills of PTPs rejoining the industry would likely be obsolete.

MILLENNIALS WON’T CLOSE THE GAP
Oil and gas careers are not attractive to many young people, who believe the industry lacks innovation, agility and creativity.

PTPs older than 55 will make up just 7 percent of the oil and gas workforce in 2025—compared to 19 percent in 2015

RECOMMENDATIONS

To position themselves for the upturn, and thrive over the long term, oil and gas companies must start now by rethinking four main elements of their talent strategy.

Pivot to hiring.

Pivot to hiring. Understand how PTP roles will change and invest in talent strategies that will attract and retain the best and brightest.

Pivot from firing to hiring.

Use digital to attract and develop talent. Digital platforms, cloud-based collaboration tools, and training delivered via remote coaching, augmented reality or streaming video make a difference.

Pivot from firing to hiring.

Work smarter. Standardizing processes and prioritizing workloads can drive efficiencies and free PTPs for more strategic activities.

Pivot from firing to hiring.

Make agility the north star. Design talent strategies that optimize the talent mix—and the extended workforce.

AUTHORS

CONTRIBUTORS

Benjamin Beverly        Connect with Benjamin Beverly's Profile/s on LinkedIn. This opens a new window.
Rajkumar Britto        Connect with Rajkumar Britto's Profile/s on LinkedIn. This opens a new window.
Serena Yeung        Connect with Serena Yeung's Profile/s on LinkedIn. This opens a new window.


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