What's Happening?
The oil and gas industry is facing significant hiring challenges due to an aging workforce, reduced international mobility, and slow adoption of artificial intelligence, according to the 2026 Global Energy Talent Index (GETI). The report highlights that nearly half of the workforce is aged 45 and older, while the proportion of younger workers aged 25 to 34 has decreased to 19%. This generational gap is compounded by a decline in global mobility, with fewer professionals willing to relocate for work. Despite some pay increases, salary growth has slowed, and expectations for future raises have softened. The adoption of AI in the industry is growing but remains uneven, with engineering and technical roles being the hardest to fill. Companies are
adjusting recruitment strategies by investing in training and revising role requirements to address these challenges.
Why It's Important?
These workforce challenges have critical implications for the oil and gas sector's ability to sustain operations and meet future project demands. An aging workforce and declining mobility could lead to skill shortages, affecting project delivery and operational efficiency. The slow adoption of AI suggests that the industry may lag behind in technological advancements, potentially impacting competitiveness. The need to attract younger talent and retain experienced workers is crucial for the industry's long-term viability. As the energy sector undergoes a transition towards more sustainable practices, addressing these workforce issues is essential for maintaining a skilled and adaptable labor pool.
Beyond the Headlines
The report underscores the need for the oil and gas industry to innovate in its approach to workforce management. Embracing digital tools and AI could enhance productivity and attract tech-savvy younger workers. Additionally, fostering a more inclusive and diverse work environment may help bridge the generational gap and improve talent retention. The industry's ability to adapt to these workforce dynamics will be pivotal in navigating the broader energy transition and ensuring its role in the future energy landscape.
