What are the major consequences of an ageing oil and gas workforce?

Aberdeen must attract 120,000 recruits – the equivalent of the city’s current workforce – if it is to realise its potential as a global energy capital, according to a new report.

Accountants firm PwC said the recruits are needed by 2022, as almost half the industry’s workforce is now over 45. Reported the BBC News Website

An ageing workforce is a major challenge faced in all E&P regions, as baby boomers begin to retire there is a ‘big crew change’ needed to take place with technical and engineering talent from the X and Y generations. The ageing oil and gas workforce creates a number of serious obstacle in the industry and these include:

Employee and skills shortages

- the industry needs to make sure the required amount of human capital and level of capability is in place for the next 5 – 10 years

Knowledge management and retention

-  the risk with the “big crew change” is that knowledge and skills get lost when the workers leave the industry and there is no effective transfer

Attracting new staff

- the industry is also facing an image problem in terms of attracting and retaining graduates – they need to work with governments and education providers in order to address this issue

Retaining talent

- there is a merry-go-round of workers in the industry as companies poach employees from each other

If more is not done to develop the next generation of oil and gas professionals, the industry faces wage inflation, lower productivity, project delays and cancellations and higher operational costs.

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