The Oil Glut 2014-2016
Beginning around 2014 an oil ‘glut’ occurred and lasted through 2016. The price of oil in 2012 was at a high of $125/barrel but by January 2016 it had fallen to $30/barrel; quite the precipitous fall. The emergence of shale gas (especially in the U.S.), growth of renewables, sluggish Chinese growth (comparatively), and international tensions between crude producing countries were all factors that helped bring on the ‘glut’. Only recently has it weakened and oil prices are expected to reach past $50 a barrel again. OPEC agreed in 2017 to cut production world-wide in order to push prices back up and it appears to be working, albeit slowly. Although we are seeing prices at the pump go up and will probably continue to see that, the good news is that there is Oil & Gas job growth expected through 2018.
Job Outlook 2018
NES Global Talent partnered with oilandgasjobsearch.com to do extensive peer research in the Oil & Gas industry in 2017. They surveyed around 3,000 employers and over 5,000 employees and the findings are definitely positive. There are expected to be more jobs added than lost during the next 12 months, something that hasn’t happened since 2014.
According to their report, the industry lost over 400,000 jobs from 2014-2016. With oil prices more stable and investments on the rise, especially in U.S. shale, employers are optimistic and looking to increase with the market. Close to 90% of employers surveyed reported they expect to maintain their current jobs or increase hirings over the next 12 months.
Many of the employees that were laid off during 2014-2016 have moved on to other careers and many who were aspiring to a career in the Oil & Gas industry were turned off to other paths for fear of entering a sinking industry. This could leave a bit of a hole in the hiring pool, not just over the next 12 months but beyond. This of course could spell opportunity for some who are still considering a career in the industry. Training courses in oil & gas could be of even greater value now as the industry looks to replenish their workforce.