The large number of oil, gas, and petrochemical business employees expected to retire in the next few years along with anticipated industry growth has reinforced the need to attract younger workers. The industry will look to the Millennial Generation to fill roles and support expansion.
A report by IHS Markit for the American Petroleum Institute states that “with nearly 1.9 million job opportunities projected in the oil and natural gas and petrochemical industries through 2035, there is a vast opportunity for the industry to attract, retain, and develop lifelong careers for Millennials.”
Millennials, also labeled “Generation Y” are defined as those born roughly between 1980 and 2004. Millennials have an unmatched characteristic of unwavering self-confidence, a better understanding and usage of technology, which will enable them to position themselves to understand and conquer future challenges within the complex industry of oil and gas. Currently Millennials account for nearly one third of the oil and gas industry’s workforce.
Generational comparison
Comparing Millennials to Baby Boomers and Generation X, they are more diverse, better-educated, and employed largely in the services industry.
Millennials, ages 18-34 in 2016 from data collected from the US Census Bureau, were Hispanic, African American, or another minority group accounting for 45% of those entering the workforce compared with 33% of Generation X and 22% of Baby Boomers.
In 2016, 66% of Millennials ages 25-34 had some college credits compared with 56% and 45% of Generation X and Baby Boomers, respectively.
In 2015, Millennials accounted for 475,000 jobs in the oil, gas, and petrochemicals industry—about 34% of total industry jobs employed. Typically, Millennials shift away from blue-collar jobs but within the oil and gas industry, they hold the highest share of employment in blue-collar occupations. “Millennials account for 46% of all industry employment in unskilled blue-collar occupations and 42% in semiskilled blue-collar occupations.”
Once Millennials complete their educations and fully enter the workforce, by 2025, they are expected to hold 41% of oil and gas industry jobs over the next decade, a 20% increase. By 2025, as Millennials age, it is expected that their participation in less-skilled, blue-collar jobs will decline, and their participation in professional, or white-collar jobs in finance, management, or business-related occupations will increase to 39%.
STEM skills
According to the US Bureau of Labor Statistics, based on the average annual wage data, one working in the oil and gas industry will earn about $50,000 more than the 2016 average.
Those that have STEM (science, technology, engineering, and mathematics) education and skill set will receive higher pay. Currently 20% of all jobs in the US economy comprise of STEM skills and training and projected to grow about 9% during 2014-24.
The oil and gas industry, which has many STEM jobs, has a need to concentrate in promoting the relationship between STEM education and employment. Many of the upcoming jobs available to be filled by Millennials will require strong skills in STEM specialties.
IHS Markit said, “Holding a STEM bachelor’s degree nearly doubles the likelihood of working in the oil and natural gas industry and earning a degree in an industry-specific or related field increases the likelihood of working in the industry by three to seven times.”
Laura Bell-Hammer | Statistics Editor
Laura Bell-Hammer has been the Statistics Editor for the Oil & Gas Journal since 1994. She was the Survey Editor for two years prior to her current position with OGJ. While working with OGJ, she also was a contributing editor for Oil & Gas Financial Journal. Before joining OGJ, she worked for Vintage Petroleum in Tulsa, gaining her oil and gas industry knowledge.
