After years in the doldrums, is the new crop of investment in oil and gas set to reactivate the sector, improving the jobs outlook and salaries? With a few qualifications, the answer is certainly yes.
Globally, we are facing a trilemma of energy policy-related challenges – the need for sustainability, the importance of safeguarding energy security and keeping energy affordable. It is a complex set of problems with no quick fix.
This is the first of a two-part series exploring the jobs outlook and future of oil and gas talent, a companion to our recently released Subsurface Oil & Gas Employment Insights Report.
Here,how the energy trilemma has impacted the reality of doing business in the industry, the trends we are observing around hiring, and the oil and gas jobs outlook.
Capital Access a Key Issue for Oil and Gas
The oil and gas industry’s biggest challenge is the lack of access to capital, according to our latest industry research. Our report shows that 48% of organisations find access to capital very challenging, making it the second most significant concern after government policy, which 56% identified as the most challenging factor.
Years of underinvestment have hampered small oil and gas companies in particular, leading to an exhaustion of reserves. As the timeframe between exploration and production is approximately five years, we have little time to respond to growing energy demands that cannot be met with renewables alone. We have got to react sooner than we think.
An energy policy and narrative shift will likely make it easier to secure capital, although it will take time to change direction after years of framing fossil fuels negatively. Before perceptions start to shift, it is important to remember that people have been told for a long time that fossil fuels are bad.
Once those perceptions do change, access to capital will likely become easier because lenders won’t be as concerned about public backlash. We could then start seeing some positive outcomes.
Energy Policy Changes and Narrative Shift
As the realisation dawns that gas, as a transition fuel, is integral to net zero, and the timeline to net zero will stretch out longer than originally anticipated, policymakers and investors have understood they must pivot back towards supporting the industry.
The rest of the world is recognising the importance of continuing investment in gas, with North and South America, Europe, and Southeast Asia all approving gas projects. Australia has followed suit, with the government’s Future Gas Strategy signalling federal support for increasing gas production. State governments in Queensland, Western Australia, the Northern Territory, and Victoria are also backing this initiative, indicating growing support for gas development. The key message is clear: gas is a crucial part of the solution, not the problem.
However, as I’ve alluded to above, the shift towards accepting gas as a solution will be an incremental one. The language of the Future Gas Strategy offers clues, especially with what I’d call a “softening” of the message. The strategy acknowledges the need for more gas, but it also includes clauses that potentially .
The idea of drilling wells without seismic data is flawed because it would likely result in the need to drill more wells due to the guesswork involved, rather than efficiently targeting the right spots with fewer wells.
This approach seems to be a way of the government saying, “Yes, we support oil and gas, but we also recognise that some people have concerns.” The wording in the document seems to reflect a balancing act. It is part of a gradual process of bringing people along on this journey, rather than making a sudden and drastic shift in policy and the overall narrative.
Business Confidence is Returning
We have seen an increase in hiring recently after several subdued years since late 2014. The late 2014 oil price crash, the impact of COVID and the growing unpopularity of fossil fuels have made for a challenging decade. In May 2024, however, we noticed a turning point following the announcement of the Future Gas Strategy.
This shift was further highlighted during the Australian Energy Producers Conference and Exhibition, the largest event of its kind in the Australia-New Zealand region. While the conference itself didn’t directly change things, it brought everyone in the industry together. With the government’s renewed support for the industry, people in the industry have begun feeling more optimistic and ready to move forward. As a result, we have seen companies gaining confidence, approving projects, securing budgets, and making real progress.
Contractor vs Permanent Hiring
Hiring intentions for both contract and permanent and oil and gas jobs is showing signs of growth, as our survey findings show. Amongst the companies showing a preference for contract hires, we can put this down to uncertainty about the future, despite having work that needs to be done now and budgets approved for the next 12 months. Even though a project might be expected to take three years, companies can only commit to the first 12 months at this point. The final investment decision and other factors could also influence this down the line.
From candidates ’perspective, whilst there is a degree of variation in preferences for job type, the perception of stability via a permanent job is particularly important to most people.
Renewed Employer Focus on Talent Attraction and Retention
Companies are increasingly focused not just on attracting staff, but also on retaining and keeping them engaged in the workplace. This is especially true for smaller companies, who are actively involving us in these discussions. They’re asking for advice on things like adjusting their bonus structures and whether these changes would appeal to employees.
Larger companies are likely doing the same, but they have extensive internal resources, so we are less involved in those conversations. However, it is clear that the emphasis has shifted from just hiring to also retaining talent, especially as we face a growing skills shortage. Businesses recognise that their employees are incredibly valuable assets.
What Makes Talent Stay or Change Jobs?
The cost-of-living crisis is understandably adding weight to concerns about remuneration. With oil and gas talent more focused on salaries, we are now starting to see salaries increase to an extent.
Yet salary isn’t the only factor that makes people stay in their role. From our perspective as oil and gas recruitment specialists working with small and medium-sized enterprises, there is a fair amount of variability in what people want in a new role.
Amongst the most common talent attraction factors are longevity, collaborative work environments and good professional opportunities that allow them to develop new skills. It is not a coincidence that organisations with high employee retention tend to provide more breadth to their roles, allowing employees to stretch their skills and expand their capabilities.
Discover More Oil and Gas Recruitment Insights
Stay tuned for part two of this series, where I explore the long-term outlook and strategies for building Australia’s future oil and gas talent. For more insights and data on oil and gas jobs and salaries, access your free copy of our Subsurface Oil & Gas Employment Insights Report here or please contact me or one of our recruitment specialists.