API study finds 30% to retire in 5 years

API Workforce Task Force study suggests that companies have time to prepare for skills shortage.

The American Petroleum Institute (API) has carried out a study of the oil and gas industry which ‘confirms a growing need over the next decade for petroleum engineers and geoscientists’. The survey was conducted by the API’s new Workforce Task Force which includes senior human resources officials at API major oil companies and suppliers. Twenty-two companies responded to the survey, some 17% of the industry workforce. Integrated, oil service and independent companies from both the upstream and downstream segments took part.

Retirement

The survey indicates a large impact on the workforce from retirement five to ten years out, meaning that companies have time to prepare. Engineering and geosciences hiring needs are forecast at 38% of the current workforce in the next five years and 28% for operations.

Issues

Apart from the aging workforce, industry is confronted with recruiting challenges, ‘skill pool management’ and enhancing the attractiveness and awareness of youth to the energy industry. This is proving hard because of widespread negative perception of the industry in terms of its future potential, job stability, use of outsourcing and contractors, and safety and environmental records.

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