Is the New Generation Still Interested in Offshore Work?

Foreword

As the saying goes, ‘A rising tide lifts all boats,’ and the offshore industry is now navigating through the waves of generational change.

 

The oil and gas (O&G) sector, a key player in the global energy market, has faced significant upheaval, particularly since the COVID-19 pandemic struck. This challenging period was marked by a ‘triple whammy’ of factors: market instability, pandemic-induced job losses, and a decisive industry shift towards renewable energy.

Collectively, these factors led to a substantial reconfiguration of the sector’s operational and employment landscapes.

 

Despite these challenges, recent data indicates a cautious rebound, with offshore personnel numbers incrementally returning to pre-pandemic figures. However, this recovery is set against the backdrop of the industry’s loss of nearly 34,000 jobs during the pandemic, as highlighted in industry reports. This significant reduction in the workforce brings the sector’s need for a resilient and strategic recovery plan into sharp focus.

 

The sector’s forward trajectory is increasingly aligned with the global shift towards sustainable energy sources. This transition is evidenced by oil and gas companies progressively investing in renewable energy initiatives. For example, the North Sea Transition Deal exemplifies this shift, aiming to balance job retention and the creation of a diverse workforce with the industry’s move towards net zero carbon targets. Further, the Robert Gordon University report anticipates a need for 200,000 workers in sectors like offshore wind, hydrogen, and carbon capture by 2030.

Changing Attitudes and the Age Factor

Statistics reveal that the average age of the offshore workforce is 44.1 years. This ageing demographic underscores a critical concern: are younger generations interested in filling these roles?

 

The sector’s image has taken a hit, with environmental concerns and the allure of clean energy drawing the youth away from traditional O&G roles. This shift in attitude is pivotal — it’s not just about the job market but also the values and interests of a new generation.

 

Adding to this, a significant 58% of millennials avoid sectors with negative images, as Neil Bradshaw of Petroplan reported, with oil and gas being particularly unappealing.

Educational Pathways

The academic world is reacting to these shifts. We’re seeing a decrease in universities offering petroleum engineering courses, with an 83% drop in Petroleum Engineering graduates over five years, according to Neil Bradshaw, Petroplan’s EMEA Head of Permanent Recruitment.

 

Institutions like the University of Calgary and Imperial College London have phased out oil and gas engineering majors. This trend reflects the changing interests of the youth and the evolving demands of the energy sector. The industry faces campus recruitment challenges, evidenced by student protests against ExxonMobil at Harvard and MIT and bans on oil companies at British university recruitment events.

 

Financial Considerations

In terms of compensation, the question is whether the wages in the O&G sector keep up with inflation and if they’re attractive enough for the new generation.

 

While the industry has traditionally been known for its lucrative pay, the initial training costs can be steep. The economic equation of entering the offshore industry is becoming increasingly complex, especially for the average young person.

 

Work-Life Balance

The lifestyle of an offshore worker is unique, often involving long periods away from home and demanding work environments. Today’s youth prioritise work-life balance differently, seeking flexible careers and a healthy personal-professional equilibrium.

 

How does the offshore lifestyle align with these modern expectations? This question is particularly relevant considering the increasing emphasis on mental health and well-being in the workplace. The OGUK report highlights that the oil and gas sector is adapting to these changing expectations by exploring more flexible working patterns.

Social Media’s Influence

Social media has played a dual role — it’s both glorified and vilified the offshore industry. While it offers a platform for showcasing the adventurous aspects of offshore work, it also amplifies environmental concerns and societal impacts, potentially deterring the new generation.

 

This is particularly significant considering the increasing reliance of the younger generation on social media for information and career insights. Surveys, including the EY Consumer Survey, reveal a growing disparity in perceptions between younger generations and oil and gas executives, likely influenced by social media narratives.

 

These platforms have become critical in shaping the industry’s public image, with executives often needing to be more accurate in their impact on the industry’s appeal to youth.

 

Addressing Youth Interests

Amid these challenges, the industry needs to adapt and showcase the potential benefits to attract young talent. Highlighting technological advancements, environmental responsibility, and opportunities for innovation could be vital in appealing to a younger audience.

 

This is particularly pertinent in light of the EY Consumer Survey – which reveals a significant gap between the perceptions of the younger generation and oil and gas executives.

 

The younger generation is increasingly drawn to industries that align with its values, particularly those that demonstrate a commitment to environmental sustainability and technological innovation.

 

The Way Forward

The path forward for the O&G sector involves a delicate balance. It’s about retaining its core strengths while adapting to the evolving demands and values of the new generation.

 

With a focus on sustainability, technological innovation, and a fair transition towards net zero targets, the sector can continue to be a significant player in the global energy landscape and an attractive career choice for the youth.

 

The North Sea Transition Deal, which aims to create high-quality jobs while transitioning to lower carbon alternatives, exemplifies this approach, potentially making the sector more appealing to environmentally conscious youth.

 

Conclusion

The offshore industry stands at a crossroads. By understanding and addressing the concerns and interests of the younger generation, it can chart a course that ensures its relevance and appeal in a rapidly changing world. The future of offshore work hinges not just on market dynamics but on aligning with the aspirations of the new wave of potential entrants into this field.