Oil and gas industry urged to support new skills strategy

A new report into UK oil and gas workforce dynamics indicates that more than 40,000 new people will need to be recruited into the industry over the next 20 years, including 10,000 in posts that don’t exist today.

The UKCS Workforce Dynamics Review, by energy skills body OPITO in partnership with Robert Gordon University’s (RGU) Oil and Gas Institute, assesses the changing skills requirements for the industry over the next 20 years. The research will assist in providing a roadmap for a new skills strategy to ensure the sector is ready to take advantage of emerging roles and diversification opportunities.

Modelling different scenarios, the report shows that whilst total employment will fall over time, if the industry achieves its ambitions around Vision 2035 and the lower carbon transition, tens of thousands more posts can be safeguarded and around 10,000 people will need to be recruited in emerging digital roles that don’t exist today in data science, data analytics, robotics, material science, change management and remote operations.

The report also suggests that over 80,000 workers are likely to retire or leave the sector for other reasons by 2035. Following the downturn between 2014 and 2017, the industry lost over 70,000 direct and indirect jobs (a decline rate of some 10% per year). On the basis that the industry can achieve the goals around Vision 2035 and the wider energy diversification, the industry should be able to sustain over 130,000 roles in 2035, compared to around 170,000 in 2017 (a decline rate of less than 1.5% per year), suggests the study.

The Oil and Gas Authority in collaboration with Oil and Gas UK created a new vision for the industry – Vision 2035 – based on maximising economic recovery from the UKCS and a doubling of the international footprint of the UK based supply chain. Vision 2035 captures the ambition of the industry to produce an additional 3bn barrels of oil and gas by 2035 and to double the UK’s share of the global oil and gas supply chain market from 3.7% to over 7% by 2035. The industry is currently developing a roadmap for Vision 2035.

John McDonald, CEO of OPITO, notes: ‘The skills strategy that will emerge from the review is likely to include the development of new programmes and courses involving input from employers, trade unions, governments, agencies, educational establishments and commercial training organisations. To make the most of energy transition opportunities, common standards will be needed across the energy sectors to create a more flexible workforce for the future.’

Louise Kingham OBE FEI, Chief Executive of the Energy Institute, adds: ‘Making sure that the workforce of tomorrow has the appropriate skills for the ever-evolving energy system is of vital importance. Future proofing individuals by giving them transferable skills is key, particularly as the energy sector’s low carbon transition picks up pace. The UKCS Workforce Dynamics Review is a useful resource as the industry grapples with the impacts of introducing new technology and further decarbonisation.’

She continues: ‘The Energy Institute is ideally placed to support members through our extensive range of resources, training and professional development opportunities. Our members stand primed and ready to meet the challenges of tomorrow head on.’