By Peter Simandl, Hudson RPO Vice President, Talent Acquisition Solutions and Business Development
And Elizabeth Borchers, Hudson RPO Account Manager, Americas
The oil and gas industry is undergoing a transformation marked by strong financial performance, evolving demand trajectories and heightened sustainability goals. As the sector grapples with these changes, attracting and retaining talent has become a pressing challenge, as organizations look for the most efficient and effective ways to win the war for talent.
Oil and gas have rebounded from the pandemic, with demand returning to pre-pandemic levels. Despite the global energy transition accelerating, oil and gas are set to remain critical components of the energy landscape over the next decade. Natural gas demand, for instance, is projected to rise in the medium term, driven by power generation, blue hydrogen production and high-heat industrial applications. The rapid growth of liquefied natural gas (LNG), expanding eight times faster than total gas demand, as McKinsey highlighted in a recent report.
However, the industry faces structural shifts. Electric vehicles (EVs) are expected to increase electricity demand while gradually reducing reliance on oil. This dynamic, projected to unfold over the next seven to ten years, creates uncertainty for long-term demand. To navigate these challenges, companies are pursuing upstream growth, consolidating assets and reshaping the downstream sector. Notable trends include diverging bets on new energy, a focus on performance efficiency, and a sustainability-driven agenda.
From a workforce perspective, U.S. companies have outperformed their global counterparts, particularly in exploration and production. Yet, challenges persist. High attrition rates, skill shortages and the reluctance of workers to relocate to remote sites require a rethinking of traditional talent acquisition strategies.
The sector’s transformation has highlighted significant challenges in attracting and retaining talent. Remote job sites, often essential for oil and gas operations, remain a tough sell for candidates who prioritize urban living and career mobility. Compensation disparities between rural and urban postings exacerbate this issue, with larger cities often offering higher pay and more amenities.
Moreover, the industry faces a generational divide in employee priorities. Younger professionals are drawn to opportunities for learning and development (L&D), mentorship, and career progression. In contrast, mid-career workers prioritize financial benefits such as retirement plans or long-term incentives, while senior leaders seek stability, autonomy and meaningful leadership roles. This divergence underscores the need for tailored approaches to talent management, ensuring that employer value propositions (EVPs) resonate across all career stages.
According to research by Everest Group, to address talent shortages and position as an employer of choice, companies must adopt a multifaceted approach. Below are actionable strategies tailored to the oil and gas sector:
The oil and gas industry is at a pivotal juncture, where innovation in talent acquisition must align with the broader shifts in energy demand and sustainability. By refining their EVPs, investing in workforce development, embracing flexibility and leveraging data-driven insights, companies can address the talent challenges that threaten their long-term success.
With the right approach, the oil and gas industry can position itself to thrive in an era of transformation, driving innovation and sustainability while fostering a skilled and engaged workforce.
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