This article has been written by Geetanjali Wadhwa pursuing a Training program on Using AI for Business Growth course from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

Oil and natural gas are integral to the global economy, contributing significantly to energy needs. The industry operates through intricate processes and systems requiring substantial capital investment and cutting-edge technologies. The processes include exploration through transportation, refining, and distribution via pipelines and storage tanks.

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The oil and gas industry stands as the lifeblood of the global economy, wielding immense significance across sectors and continents. Serving as the primary source of energy for transportation, manufacturing, and electricity generation, its impact reverberates through every facet of modern life.

Moreover, the industry’s vast infrastructure employs millions worldwide and fuels economic growth in producing nations, shaping geopolitical dynamics and influencing global markets.

Recruitment in the oil and gas sector

The oil and gas industry consists of three segments, namely upstream, midstream and downstream.

Upstream

Exploration and production companies comprise this category. They find reservoirs and dig wells to extract oil. Wells can be onshore or offshore, depending on their location Petroleum engineers, seismic geologists, petroleum physicists, and safety engineers are employed, and they come with specialised training and a high educational background.

Midstream

Midstream refers to the storage, processing, and transportation of petroleum products. It includes companies specialising in operating tanker ships, pipelines, or storage facilities. Pipeline engineers, truck drivers, and engineers managing the tank farms are included in this category.

Downstream oil and gas

The downstream sector encompasses intricate processes in refining crude oil into usable products and distributing them globally. This segment demands various engineering disciplines, production, and operation experts, as well as marketing and distribution specialists.

This sector operates on a global scale and relies on the profit margins generated from the transformation of crude oil into refined products.

Jobs in this category include design engineers and designers of all categories, such as mechanical, chemical, instrumentation, etc., along with production and operation engineers. Those specialising in marketing and distribution also find opportunities in this segment.

Key trends influencing oil and gas hiring practices

Digital transformation

Adoption of AI, machine learning, and data analytics in recruitment processes

Incorporating artificial intelligence and machine learning into the recruitment procedures of the industry is on the rise. This technological integration not only streamlines the hiring process but also mirrors the broader digitization trends prevalent in the sector.

Digital platforms for talent sourcing and management:

Digital recruitment tools: These technologies leverage advanced tools to enhance and streamline the recruitment process. They aid in various stages, including advertising, candidate evaluation and management, and reporting, thereby improving overall efficiency and effectiveness.

To stay ahead in the current competitive market, HR teams use the following essential recruitment tools:

  • Chatbots: Utilisation and adaptation of recruitment chatbots have increased in the recruitment landscape as the trend of virtual recruiting began booming after the COVID-19 pandemic. Chatbots enable immediate communication with clients or candidates 24/7 and pave the way for a more efficient recruitment process.
  • An ATS: An ATS (applicant tracking system) is a software application used to streamline the recruitment process by storing candidate applications and managing the entire workflow. It enables the reduction of time spent on administrative tasks through automation.
  • Social media: Social media recruiting involves utilising social media platforms, like LinkedIn, Twitter, Facebook, and Instagram, to share job postings, network with professionals, and research potential job candidates. It facilitates communication with professional groups and broadens recruitment outreach.
  • Psychometric tests: Psychometric tests evaluate candidate’s cognitive abilities and personality traits. These tests predict valuable insights such as knowledge, skills, abilities, and other characteristics based on candidates responses.  Conducted online with the help of publishing partners, these tests enable the testing of thousands of candidates with the click of a button, and their data can be compiled and reported automatically. This saves immense time for hiring companies, enabling them to select top-ranked candidates efficiently.

Remote work

Remote work in the oil and gas sector introduces an extraordinary level of flexibility, transforming how professionals interact with their work environments. Engaging in global projects, under a variety of rotational programmes or even through project-specific relocations, opens up a world of opportunities. As the pandemic reshapes the energy sector, an increasing number of companies are embracing remote working models. One significant shift is the accelerated adoption of remote drilling and fracking technologies. Amidst widespread job cuts and redundancies, these new technologies have enabled the oil and gas industry to fundamentally transform its workforce permanently. 

Focus more on soft skills

In addition to technical skills, the industry has increasingly focused on soft skills in recruitment. In 2024, employers will be looking for candidates with excellent communication skills, leadership skills, and adaptability. As jobs become more complex and dynamic, these skills become increasingly important. According to the LinkedIn Global Talent Trends 2019 report, 91% of talent professionals say soft skills are very important to the future of recruitment and HR.

Key challenges facing oil and gas recruitment

Skill shortage

Oil and gas executives risk being unprepared to meet future production demands if they fail to promptly address their least understood asset: their workforce. Presently, the prevalent strategy for alleviating workforce shortages involves poaching top talent from competitors. Nonetheless, this method essentially perpetuates an industry-wide dependence on reshuffling the same dwindling pool of resources.

There are three causes of the skill gap

  1. The rapid pace of digitalisation: As companies rushed to integrate innovative technologies to stay afloat amid the crisis, it proved overwhelming for employees to process, thereby widening the oil and gas skills gap. This was especially true since this technological upgrade was not always complemented by consistent training.
  2. An ageing workforce: The ECITB’s 2021 Workforce Census found that more than a third of employees are over 50. While we might not like to think of 50 as old, the reality is that we have an ageing workforce, with a large proportion heading for retirement within the next one to two decades.
  3. Lack of new talent/enthusiasm: Unfortunately, the oil and gas industry does not have the same appeal it once did. According to the Energy Outlook 2022 Report, workers aged 25 to 29 are 25% more likely to want to leave the oil and gas sector than older professionals and move to the sector of alternative resources for energy. As the world focuses on the impacts of climate change and the need for renewable energy, the oil and gas sector has lost some talent to other industries.           

Sustainability and climate change

The oil & gas industry leaves a significant carbon footprint, with operations emitting substantial amounts of carbon dioxide and methane, potent greenhouse gases. The industry’s activities contribute to roughly 50% of all global methane emissions. These emissions lead to climate change and emphasise the urgent need for the Oil & Gas industry to adopt sustainable practices. This imperative arises from the industry’s profound impact on the planet’s ecosystems and communities, necessitating a reduction through sustainable solutions.

Diversity and inclusion

Diversity and inclusion are not only ethical and social imperatives but also strategic and competitive advantages for oil and gas companies. However, creating a diverse and inclusive workplace culture requires more than just policies and programmes. Women represent a mere 23% of the oil and gas industry, one of the lowest inclusion rates of any major industry. According to a recent report from Boston Consulting Group, which analysed diversity and inclusion in the industry and found lower levels of female representation in higher-up roles in companies.

Some of the key steps that are being taken to address the challenges

In the face of rapid technological advancements and evolving industry demands, oil and gas companies are proactively addressing challenges to ensure their continued success. Here are some of the key steps they are taking:

  1. Investing in training and development: Recognising the importance of upskilling their workforce, oil and gas companies are investing in comprehensive training and development programmes. These programmes aim to equip employees with the necessary skills and knowledge required to navigate the digital landscape and stay competitive. By providing opportunities for continuous learning and professional growth, companies empower their employees to embrace emerging technologies and contribute more effectively to the organisation’s goals.
  2. Partnering with educational institutions: To cultivate a talent pipeline that meets the industry’s evolving needs, oil and gas companies are forging strategic partnerships with educational institutions. These partnerships involve collaborating on curriculum development, guest lectures, internships, and research projects. By working closely with academia, companies can influence the education process and ensure that graduates possess the skills and competencies relevant to the industry’s current and future requirements.
  3. Rethinking recruitment strategies: In a globalised and competitive job market, oil and gas companies are rethinking their recruitment strategies to attract and retain top talent. This includes expanding their reach beyond traditional talent pools and seeking candidates with diverse backgrounds, experiences, and perspectives. Companies are leveraging digital platforms, social media, and employee referral programs to identify and connect with potential candidates. Additionally, they are offering competitive compensation packages, flexible work arrangements, and opportunities for international assignments to attract and retain skilled professionals.
  4. Promoting diversity and inclusion: Recognising the value of diverse perspectives and experiences, oil and gas companies are committed to promoting diversity and inclusion in the workplace. They are implementing initiatives to create a more inclusive culture, address unconscious bias, and foster an environment where all employees feel valued and respected. By embracing diversity, companies can tap into the collective knowledge and creativity of their employees, driving innovation and enhancing problem-solving capabilities.
  5. Focusing on employee well-being: Oil and gas companies understand that a healthy and engaged workforce is essential for organisational success. They are prioritising employee well-being by offering comprehensive wellness programmes that address physical, mental, and emotional health. These programmes may include access to healthcare services, counselling, fitness facilities, and flexible work arrangements. By investing in employee well-being, companies create a positive and productive work environment that enhances job satisfaction, reduces turnover, and improves overall performance.

By taking these steps, oil and gas companies can address the key trends and challenges in recruitment and ensure that they have the workforce they need to succeed in the future.

Cyclical nature of the oil and gas industry

Achieving sustainable growth in this industry can, frankly, be challenging. One of the reasons is the cyclic nature of the business, which is characterised by unpredictable and often drastic changes in demand. The task of shifting between expansion and contraction can be especially disruptive. The industry is volatile due to many factors. These include but are not limited to price swings, exchange rate fluctuations, the availability (or lack thereof) of capital, seasons and weather, changes in government and geography, political unrest, etc. 

Navigating the trends and challenges requires key management considerations.

  • Global talent- Key skills are often dispersed around the world, requiring companies to recruit internationally or partner with educational institutions to secure a skilled workforce.
  • Safety and compliance- Strict safety regulations emphasise the importance of comprehensive inspections when assigning personnel to ensure compliance and mitigate risks.
  • Employee diversity- Encourages innovation by embracing diversity and bringing diverse perspectives to problem-solving. An important asset in managing the challenges of the industry.
  • Technology integration- With increasing technological sophistication, management strategies must prioritise individuals skilled in automation, data analytics, and digitalization.
  • Training and development- Ongoing training programmes are essential to familiarise employees with industry developments and safety procedures.
  • Contractual staffing- The use of contractual staffing provides flexibility, especially in terms of job-based requirements, but requires careful management to ensure employee equity.
  • Environmental problems- Addressing environmental impacts makes it necessary to engage employees with environmental sustainability experts in the system.
  • Remote locations- Staffing policies should address mobility challenges associated with remote working and ensure support for personnel deployed in such locations.
  • Adaptive HR policies- HR policies must be flexible to meet changing circumstances, including market fluctuations and emergencies.
  • Partnerships with educational Institutions- This facilitates the development of talent propositions through training programmes and education.
  • Supply chain partnerships- Partnering with suppliers and service providers increases flexibility and costs in talent management.
  • Mental health and well-being- Developing a safety culture by prioritising employee well-being is of utmost importance to meet the demanding nature of the job.
  • Data-driven decision making- The benefits of data analytics enable managers to make informed decisions, facilitating predictive and optimised management planning.

Conclusion

In conclusion, the oil and gas industry is facing a myriad of challenges and opportunities in recruitment. The integration of digital technologies, remote work, and a growing emphasis on soft skills are transforming the recruitment landscape. However, key challenges such as skill shortages, sustainability concerns, diversity and inclusion gaps, and the cyclic nature of the industry persist.

To navigate these trends and challenges effectively, key management considerations include opening global talent networks, prioritising safety and compliance, promoting employee diversity, integrating technology effectively, investing in training and development, managing contractual staffing arrangements, addressing environmental issues, supporting remote workers, maintaining adaptive HR policies, and forging partnerships

With educational institutions and supply chain partners, prioritise mental health and wellbeing and leverage data-driven decision-making.

By addressing these considerations, oil and gas companies can better position themselves to attract and retain top talent while successfully adapting to the evolving demands of the industry.

References

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