The oil and gas industry is vital to the global economy, providing essential energy resources to power daily life and fuel economic growth. With millions of people in this industry worldwide, providing job opportunities and generating revenue for countries is crucial. Understanding the employment trends and statistics within the oil and gas industry is essential for policymakers, industry leaders, and job seekers alike.
In this post, we will examine the current state of employment within the oil and gas industry, analyzing key data and trends to gain insight into its overall impact on the global economy.
Oil and Gas Industry Employment Statistics
Key Takeaways
- The biggest oil companies are located in several countries, including Saudi Arabia, the United States, China, the United Kingdom, and France.
- The global oil and gas sector combined employed 11.8 million people in 2019.
- The oil and gas industry’s exploration and production roles had 148,610 oil and gas drilling extraction employees in the US in 2023.
- The demand increase for STEM workers in the oil and gas industry has been significant.
- The future of oil and gas employment is still being determined due to the shift toward renewable energy sources. Still, the industry has potential growth areas, and some reports suggest optimism for future employment levels.
Key Stats
- According to a report by Investopedia, the oil and gas industry created an estimated $5 trillion in revenue in 2022.
- A 2019 report by the IEA stated the estimated number of employees in the global oil sector was 8 million, whereas the gas sector had 6.3 million employees.
- According to a report by IBISWorld, the exploration and production roles in the US will experience a 5% decline in growth in 2023.
- According to an International Labor Organization (ILO) report in 2022, employment in the oil and gas industry is highly dependent on periods of ‘booms’ in exploration and extraction, leading to cyclical employment levels.
- According to a survey conducted by Brunel, 56% of oil and gas workers wanted to transition to the renewables industry in 2021, up from 39% in 2020.
Oil and Gas Industry and Why It Matters
The Library of Congress is a federal institution. It is a research library in the US and the country’s largest library. According to an article published by the institute in 2023, the oil and gas industry are major industries in the energy market and are the world’s primary fuel sources. They are interlinked due to the production processes and the upstream side of the businesses.
The article further stated that the industry is divided into three sectors:
- Upstream: Exploration and production.
- Midstream: Transportation and storage.
- Downstream: refining and marketing
Investopedia published a report in 2022 outlining the details of the industry. The report stated that the industry is one of the largest sectors in the world per dollar value. They noted that it created $5 trillion in estimated revenue in 2022.
A separate report by Investopedia in 2022 further stated that the biggest oil companies are located in Saudi Arabia, the United States, China, the United Kingdom, and France.
Investopedia is a financial media website that accumulates millions of readers looking for advice, reviews, or investment dictionaries.
Importance of Employment Statistics in the Industry
Employment statistics play a critical role in understanding the labor market dynamics of the oil and gas industry.
Gitnux is an online platform specializing in software, HR, business management, and marketing trends. They published a blog discussing various gas and oil industries’ employment trends and how they affect future employment opportunities. Thus, showing the importance of these statistics.
According to the blog post, the US had only 20.3% of female employees in their gas, oil, and petrochemical industry upstream operations sections. On the other hand, 14.3% of female employees are in their upstream venture section. These statistics brought forward the gender gap in the oil and gas industry and could have been corrected using initiatives for female representation.
Furthermore, the blog stated that Australia suffered a 25% decline in its oil and gas industry during the 2020 pandemic. The information mentioned above indicated that Australia was affected more than other countries.
Moreover, the global oil and gas industry employed almost 6.84 million people in 2019, suggesting the sector is a major employer and provides jobs to millions worldwide. The blog stated that businesses and governments should note the trend to ensure the industry’s sustainability in the future. Statistics like this also give policymakers the context they need to make better decisions. They also help people who aspire to join or want to leave the industry see the full picture.
Global Oil and Gas Employment Trends
Global Data is a data analysis and consulting firm. It provides analytical services and solutions to the biggest industries worldwide. They published a report on the job trends in the oil and gas industry.
According to the report, 24,538 new jobs were posted in December 2022 in the oil and gas industry, a 23.44% increase from the previous month. Now, let us look at the global oil and gas trends from historical periods, recent shifts and patterns, and regional differences in employment.
Historical Employment Trends in the Oil and Gas Industry
The U.S. Bureau of Labor Statistics can help us determine the employment trends globally in 2012. It published a report in 2014 on the employment changes in the oil and natural gas industry.
According to the report, from 2007 to 2012, the total annual average employment in all industries fell in the U.S. The total employment had dropped by 2.7%. However, work in the US in the oil and natural gas industry increased by 31.6%.
The International Labor Organization (ILO) is a UN agency focusing on advancing social and economic justice. They published a global report on employment trends after the ‘second job dip’ in 2012.
The global report presented the short-term, sectoral employment in the US. According to the report, the mining industry, which we will use as a proxy for the oil and gas industry, was one of the fast-growing sectors. It stated that due to the discoveries of shale gas(natural gas trapped in shale formation), the mining industry was able to better its position. A fast-growing sector meant sectoral employment was growing rapidly in these industries. The industries would also surpass their pre-crisis levels. The forecast was in 2012.
A report by the Government of Alberta in 2013 cited a statistic from the Labor Force Survey. According to the statistics, in Alberta, there were 0.13 million men employed in the mining, oil, and gas extraction industry in 2012. On the other hand, there were 43,300 women employed in the industry during the same time period. The historical employment trend suggested that 25% of women in Alberta made up the mining, gas, and oil extraction industry compared to men.
GoRemotely is a platform that connects traditional workers with companies worldwide that want to expand their remote workforce. Goremotely published an article outlining many facts about employment trends in the oil and gas industry.
According to the article, in 2017, an API study stated that the US oil and gas industry employed 10.3 million people. The report further said occupations in the sector experienced an increase of 500,000 employees since 2011.
Recent Shifts in Employment Numbers and Patterns
Global
The International Energy Agency (IEA) is an independent intergovernmental organization that provides recommendations, data, and analysis on the worldwide energy sector.
According to a report by the IEA, oil had the largest labor force, with estimated 8 million employees in 2019. On the other hand, gas had a labor force of 3.9 million employees. The report further stated that globally, oil and gas had sector employment of 11.8 million employees in 2019.
North America
The Goremotely article mentioned in the above section also showed the more recent shifts in employment trends. Due to the pandemic of 2020, Texas lost about 60,000 oil and gas job positions. The 2022 report stated that 150,000 upstream oil and gas employees kept their jobs, the lowest in 15 years.
ARC Advisory Group is a technology research and advisory firm that provides strategic guidance and industry expertise to help clients become more competitive. They published a report in 2023 detailing the work shift changes within the oil and gas industry with the energy industry.
They stated within the report mentioned above that the oil and gas industry has laid off a substantial number of employees, with reasons pertaining to automation, mergers, and lowering cost structures. ARC’s report cited the US Bureau of Labor statistics. They stated that the US, the oil and gas industry lost about 107,000 jobs between March and August 2020.
The report further mentioned a report by The World Energy Outlook, which stated the pandemic in 2020 led to a loss of 2.3 million jobs in the oil and gas sector. According to ARC, a most recent report in 2022 demonstrates that the oil and gas industry had 0.7 million fewer workers than six years prior.
Furthermore, they stated places that, with the initial attraction of oil companies, witnessed a sharp decline in their oil-related jobs. They referred to Houston experiencing a 26% decline in oil-related occupations from 2014 to 2020.
Another interesting phenomenon in the oil and gas industry is the labor shortage. In 2022, the Real Economy blog published an article. In the article, they talked about challenges faced by the oil and gas industry. Their blog pertains to the US and Canada.
Their blog stated that oil and gas companies faced a significant labor shortage. Some workers had been reported to renewable energy sources or leaving the industry for stable fields such as manufacturing or technology.
The Real Economy blog was developed to provide insight into the middle market economy. It was designed to provide current and relevant information for the aid of businesses.
Regional Differences in Oil and Gas Employment
Oil and gas employment varies significantly across different regions, with each area possessing unique characteristics that affect the nature and extent of oil and gas activity.
1. Europe
The IEA report, which outlined the world energy industry overview, published the industry’s employment in Europe. They commented on energy employment, which includes the fuel supply industry. Europe had total employment of 7.5 million workers in energy in 2019. This amounted to 2.4% of total employment in Europe.
The report further outlined that the fuel supply industry in Europe had 1.1 million employees in 2019. The fuel industry includes oil and gas. It then went into further detail. It stated that Europe’s oil and gas supplier industry had 0.6 million employees in 2019.
Britannica is an online encyclopedia that provides hundreds of thousands of fact-checked articles and information. Britannica stated that the European Union has 27 countries in Europe.
The Gitnux article on the oil and gas industry statistics stated that the European Union (EU) employed almost 844,000 people in the gas and oil sector in 2021. The article states evidently, the oil and gas industry is a major employer in the EU.
2. Asia
Asia was mentioned more distinctly in the IEA report. It stated that China had the highest number of energy workers. China was reported to have 20 million energy workers, which was 2.5% of the employment in China in 2019.
The report then stated that China had 4.9 million employees in the fuel supply industry in 2019. Alongside, India had employment of 2.6 million employees in the sector. Other Asia Pacific countries had 2.5 million employees in 2019.
China had 3.4 million employees in the oil and gas industry, India had 0.7 million employees, and the rest of Asia Pacific had 1.1 million employees in 2019.
3. North America
Furthermore, the IEA report stated that North America had 7.9 million workers in energy in 2019. Employment in the energy industry made up 3.4% of the total employment in North America in the year.
More specifically, the fuel supply industry in North America in 2019 held 2.2 million employees. While on the other hand, the oil and gas industry employed 1.9 million employees.
4. South and Central America
According to the IEA report, South and Central America’s fuel industry had 1.9 million employees in 2019. Furthermore, the oil and gas industry had employment of 1.1 million in 2019.
5. Africa
The IEA report then dwelled on Africa. The fuel supply industry employed 2.4 million people in Africa in 2019. Specifically, in the oil and gas industry, they employed 1.6 million in 2019.
Job Categories in the Oil and Gas Industry
The oil and gas industry is a vast sector that encompasses various activities. Each activity within the industry is critical and requires different job categories with specific skill sets. Let us take a look at the employment statistics in these categories.
1. Exploration and Production Roles
Investopedia stated in an article published in 2022 that exploration and production roles are a part of the oil and gas industry. They focus on the early stages of energy production. The job includes the search for and extraction of oil and gas resources.
We will use US statistics as a substitute for this section’s global statistics.
IBISWorld published a report in 2023 on the US oil drilling and extraction sector. According to the report, the US oil and gas drilling extraction had 148,610 employees in 2023. These employment statistics experienced a 5% decline in growth.
IBISWorld offers industry research services with the aid of in-house analysts to provide analytical and forward-looking insights.
The U.S. Bureau of Labor Statistics published a report on the oil and gas extraction subsector statistics. It recorded 118 thousand employees in the sector, which were adjusted seasonally in 2023.
2. Refining and Processing Roles
The Careers in Energy blog published an article on petrochemical and refining in 2021.
People obtain petrochemicals from petroleum and natural gas. The article cited a report by Statistics Canada’s labor force survey. According to the study, in 2020, 8% of the energy employment in Canada was in the refining subsector.
The article further stated that the refining industry in Canada had 15,600 workers in 2020. During the 2020 pandemic, employment declined in the sub-sector by 12.7%.
Careers in Energy offers a wealth of resources and information to learn about the energy industry, find in-demand skills, explore the job market, and make informed career decisions.
Factors Influencing Oil And Gas Employment
The global oil and gas industry, which serves as a key contributor to the global economy and provides energy to various industries, is subject to multiple factors that impact employment levels. These factors include technological advancements, market demand and price fluctuations, environmental regulations, and geopolitical events.
1. Economic and Geopolitical Factors
An International Labor Organization (ILO) report on the future of the oil and gas industry outlined the economic factors affecting the industry. The 2022 report stated that employment is highly dependent on periods of ‘booms’ in exploration and extraction. These periods of economic booms and busts lead to employment in the oil and gas industry being cyclical. Employers hire many workers during boom periods, but eventually, these jobs decline during bust periods.
While geopolitical events exist, such as the recent Russia-Ukraine war, there was a lack of data on the impacts they had on employment in the oil and gas industry.
2. Technological Advancements
An interesting phenomenon, according to the ILO report mentioned above, is the increase in demand for workers with STEM backgrounds in the oil and gas industry. This may be due to technological advances in the industry.
3. Market Demand and Price Fluctuation
Demand plays a fairly crucial role in employment, as suggested by the recent pandemic, which led to a sharp decline in demand for oil and gas. The ILO report mentioned above stated that hundreds of thousands of oil and gas industry employees were laid off in China, Russia, and the US due to the pandemic.
Future Outlook for Oil and Gas Employment
The future outlook for oil and gas employment is of great interest. With the world transitioning towards cleaner energy sources and increasing concerns over climate change, the future of oil and gas employment is uncertain. We will explore potential growth areas within the industry, shifts toward renewable energy, and their impact on employment. By examining these factors, we can better understand the future of oil and gas employment and what it might hold for those working there.
Potential Growth Areas Within the Industry
While there may be job uncertainty, a Rystad Energy report suggests industry optimism. The report stated that the economy had recovered from the jobs lost during the pandemic. They expect oil and gas employment to surpass the pandemic in its employment levels.
The Oil and Gas Journal is the world’s most widely read petroleum industry publication.
Shifts Toward Renewable Energy and Its Impact on Employment
Many oil and gas industry employees are reconsidering their future in the hydrocarbon section.
Brunel conducted a survey. The survey was of 17,000 global energy industries, recruiters, and employers.
According to the survey, 56% of oil and gas workers said they wanted to transition to the renewables industry in 2021. Previously in 2020, only 39% of workers wanted to shift.
Brunel is a business services provider that specializes in the deployment of professionals across a range of industries.
The shift from fossil fuels to renewable energy sources is expected to lead to major job losses. According to the recurring ILO report, many jobs would be lost due to the shift. It is estimated that the transition to sustainable energy will lead to a strong decline in demand for workers in the oil and gas industry by 2030.
The report further stated that petroleum refinery employment would suffer the most in the form of 1.6 million job losses. The extraction of crude petroleum and related services would suffer by 1.4 million jobs by 2030. Furthermore, the ILO report stated that workers in Canada have been looking to transfer to different sectors.
FAQS
What are the top salaries in oil and gas?
ZipRecruiter stated in an article in 2023 that the best oil and gas jobs could pay up to $256,000 annually.
What countries have the biggest oil and gas industries?
According to the Energy Information Administration, in 2022, the US is the top producer of oil, followed by Saudi Arabia, then Russia, Canada, and China.
What factors influence oil and gas industry employment?
According to Airswift, in 2021, oil and gas employment may be met with opportunities in the form of technological advancement, economic outlook, and transition to cleaner energy. The industry may also be met with challenges such as availability of capital, economic outlook, and pandemic-like health crisis.
Which sector uses the most oil and gas?
EIA stated that the transportation sector used the largest share of US petroleum consumption in 2021. Following transportation was the industrial sector and then the residential sector.
What is the future outlook for oil and gas industry employment?
According to a CB Insights report of 2022, demand for fossil fuels is expected to rise. The demand for natural gas is projected to peak by 2035.
Conclusion
In conclusion, the oil and gas industry remains crucial to the global economy, with significant employment and revenue generated worldwide. While there have been recent declines in jobs in exploration and production roles, there is still potential for growth in other areas of the industry.
However, the transition to renewable energy sources and the increasing demand for STEM workers have brought uncertainty regarding the future of oil and gas employment.
Nonetheless, it is crucial to consider the human element involved in the industry. The cyclical nature of employment in the industry can significantly impact individuals and their communities, and it is vital to recognize the importance of ensuring sustainable and stable employment opportunities for workers.
Furthermore, the shift towards renewable energy sources presents an opportunity for the oil and gas industry to play a critical role in transitioning to a low-carbon economy. Companies can leverage their exploration, production, and distribution expertise to develop innovative solutions and technologies that help accelerate the shift toward renewable energy sources.
Overall, the data on employment trends in the oil and gas industry underscore the importance of maintaining a dynamic and adaptable approach to workforce planning. As the industry continues to evolve and adapt, companies will need to remain agile and responsive to changes in the market to ensure sustainable and stable employment opportunities for workers while also playing a critical role in the transition to a more sustainable future.
