A rosy future is predicted for UK exploration and production professionals, but challenges lie ahead for employers when skills shortages emerge, said SMCL, a UK-based specialty consulting firm.
An analysis of 10 years of data revealed the following changes to the UK upstream oil and gas industry employee population:
- The average age of the population had increased to 41 in 2003 from 36 in 1994.
- The overall proportion of employees under the age of 30 had dropped to 14% in 2003 compared with 27% in 1994.
- Professional level staff under the age of 30 was 10% in 2003 compared with 20% in 1994.
In 1994, professionals accounted for 55% of the survey population while managers accounted for 12%, and support personnel accounted for 33% In 2003, professionals accounted for 75%, while managers were 7%, and support personnel accounted for 18%.
SMCL Managing Director John Sears said, "The likely consequences of these population changes are:
- A skills shortage as fewer young people enter the sector to replace older employees.
- A shrinking workforce that will lead to a premium being paid by companies for experienced employees.
- That future careers within the sector are more likely to be as experienced 'doers' and less likely to be in managerial positions."
The SMCL E&P salary survey from which these data were produced is published twice each year.
