The Oil and Gas Workforce is Aging; Who Will Fill the Gap?

The Silent Thought No One Is Talking About

Imagine this: An experienced oilfield engineer, with 35 years of expertise, retires. Along with him goes decades of knowledge about drilling operations, safety procedures, and troubleshooting skills that can’t be learned overnight. Now, multiply that by thousands.

This is the reality the oil and gas industry faces today. A massive portion of the workforce is reaching retirement age, and fewer young professionals are stepping in to take their place. The consequences? Operational inefficiencies, talent shortages, and an industry struggling to adapt to modern challenges.

So, the big question is: Who will fill the gap?

The Growing Oil and Gas Workforce Shortage

This talent crisis isn’t just about numbers; it’s about lost expertise, shrinking innovation, and a future workforce that isn’t prepared for the digital transformation in energy.

What’s Driving the Workforce Shortage?

1. The Mass Retirement Wave

Studies have shown that nearly 50% of the oil and gas workforce is expected to retire within the next decade. This means thousands of seasoned professionals will exit the industry, leaving a knowledge gap that younger workers aren’t yet equipped to fill.

2. A Decline in Young Talent Entering the Industry

As renewable energy gains popularity, many young professionals are choosing careers in solar, wind, and AI-driven energy sectors. The oil and gas sector, once a top choice for ambitious engineers and geologists, is now struggling to attract fresh talent.

3. The Digital Skills Gap

The energy industry is evolving with automation, AI in oil and gas, digital oilfields, and smart drilling technologies. However, a large portion of the workforce lacks the necessary digital skills to operate these systems, widening the oil and gas employment gap.

4. Industry Instability

Fluctuating oil prices, geopolitical uncertainties, and job layoffs have made careers in oil and gas seem risky. Many professionals now seek job security in tech, healthcare, or sustainable energy.

How the Industry is Fighting Back: Case Studies of Workforce Transformation

While these challenges are real, some companies are taking bold steps to secure their future workforce. Here’s how industry leaders are tackling the issue:

• Shell’s Digital Upskilling Initiative

Shell has launched a massive upskilling program to train employees in data analytics, automation, and AI. By investing in digital education, they’re ensuring that traditional roles in oil exploration and refinery operations evolve to meet modern demands.

Takeaway: Companies that embrace digital transformation will be the ones that attract and retain top talent.

• ExxonMobil’s Partnership with Universities

ExxonMobil has teamed up with engineering schools and technical institutes to develop programs focused on digital energy solutions, carbon capture, and smart drilling technologies. They provide students with internships and mentorships, bridging the talent gap before it widens.

Takeaway: Collaboration with academia is key to securing the future of oil and gas.

• Saudi Aramco’s Knowledge Transfer Program

Recognizing the danger of losing decades of expertise, Saudi Aramco launched a knowledge-transfer initiative, where retiring employees mentor younger professionals through structured training programs and on-site learning experiences.

Takeaway: Companies that document and transfer knowledge effectively will remain competitive in a changing industry.

5 Steps to Close the Workforce Gap in Oil and Gas

1. Launch Reskilling & Upskilling Programs

Companies must invest in training employees in AI, automation, and cloud-based oilfield management to remain competitive.

2. Rebrand Oil and Gas as a High-Tech Industry

To attract young professionals, the sector needs to highlight its use of digital twins and AI-driven predictive maintenance.

3. Strengthen University & Industry Collaborations

Scholarships, research grants, and internship programs can help position oil and gas as an innovative and future-proof industry.

4. Leverage Diversity & Inclusion for Workforce Growth

Companies that prioritize gender diversity, racial inclusion, and ESG initiatives will attract a broader talent pool.

5. Develop Knowledge Transfer Systems

Retiring employees should mentor younger professionals through structured training to ensure decades of industry experience are not lost.

The Future of Energy Depends on Its Workforce

The oil and gas industry is at a crossroads: Evolve or risk losing relevance. The workforce challenge is real, but with proactive training, strategic hiring, and digital transformation, companies can secure their future.

At IAA Energy Resources, we specialize in strategic workforce development programs, helping energy professionals and companies stay ahead of industry changes.

Are you prepared to tackle the workforce challenge? 

Are you ready to be part of the future of oil and gas?