Over the past decade, the upstream oil and gas industry has observed employment changes due to cyclical trends and a secular shift.
Cyclical Trends: Broad employment levels correlating to oil and natural gas prices
Secular Shift: Shale development, leading to a fundamental change in exploration and a focus on efficiency and "manufacturing" production models
To show the changes over time, I pulled data sets from the Bureau of Labor and Statistics. My previous overviews used the monthly reported information. In this report, I am primarily using the annual Occupational Employment and Wage Statistics (OEWS).
The data set runs from 2012 - 2020. The analysis highlights both cyclical and secular shifts to employment in the upstream industry.
2012 - E&P companies hold a high percentage of technical and exploration experts
2020 - Efficiencies, technology advancement, & core development shift corporate priorities. A depreciation of technical expertise.
A few examples:
Remain the largest group in E&P companies
Overall employment down 45% vs 2012
More individuals out of E&P vs any other group
A steady decline in employment starting before sector employment reduction
Overall employment down 58% vs 2012
A growth field across the industry
Gained proportional share in both E&P and OFS
Surpassed Geoscience employees in 2016
An increased proportional share of OFS employment
Overall employment down 36% vs 2012
More individuals out of industry vs any other group
The data set isn't perfect, but it does show changes in the industry as it continues to evolve.
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