Saw this on LinkedIn.
“A great mentor and now friend of mine is an ex-oilman turned CCUS entrepreneur – a testament to the transformative times we live in. Our conversations spiral many topics from casual to insightful and recently we hit the topic of the oil and gas industry's talent drought. It’s become quite the news:
Harold Ham – “We want to get the next generation of gamechangers involved” [1]
WSJ – “Big Oil’s Talent Crisis: High Salaries are No Longer Enough” [2]
Many who have left oil and gas for greener pastures hold the notion that the industry is fading, a victim of energy transition. They think that is why we cannot attract talent. Seemingly the 'youth' don’t want to be associated with such dirty and out of fashion work.
The data doesn't follow the narrative. Yes, U.S. oil production is at a peak, but the paycheck for the effort? Not so much.
We're pumping more barrels than ever, near all-time low employment levels (see my last LinkedIn post), but O&G employees’ incomes are in a nosedive. It raises the question: why join a field where more is done with less and for less?
How can you convince someone to sign up for a 20+ year career while at the same time dropping salaries and the number of roles available year after year? The ‘kids’ are acting rational.
Layoffs and consolidations paint a picture of efficiency, but they may also signal an unsustainable squeeze on human capital. We must ask ourselves: Are we in the middle of a talent exodus because we failed to make the industry appealing, or is it simply that we're expecting champagne output on a beer budget?”
See BLS data on average salary which has fallen to 2010 levels.