Abstract
This Energy Insights report explores and documents the aging workforce problem
in the global exploration and production industry, with a specific emphasis on
the problem of aging engineering and technical staff in the upstream line of
the business. It highlights specific oil and gas aging workforce examples from
the U.S. Bureau of Labor Statistics, the Society of Petroleum Engineers, and
the Society of Exploration Geophysicists. The study explores the future outlook
and strategies for labor replacement and knowledge retention. The role of
process improvement and business innovation in alleviating workforce-related
issues is discussed using real-world examples. The report also provides
recommendations and guidance for the E&P industry to effectively address the
big crew change.
The exploration industry faces manpower, equipment, and service shortages as it
tries to cope with a world energy demand that is projected to grow from 230
million barrel of oil equivalents per day (boe/d) today to 335 million boe/d in
2030. As such, it will rely heavily on technological advances to meet future
energy demands. Additionally, the most experienced exploration staff will
retire in the next 5-10 years. Therefore, significant workforce productivity
gains will have to be realized through digital oilfield automation initiatives
to manage future levels of E&P activity. According to Energy Insights program
manager Sekhar Venkat, "The systematic reduction in the E&P workforce due to
volatility in prices and M&A activity has resulted in workers moving out of the
oil and gas industry and created a stigma that discourages young people from
joining the industry. While a few supermajors are actively addressing these
issues through partnerships with universities, the industry is just not doing
enough. The crisis is already here and work is not getting done."
View Cart
