Outlook In Oil & Gas Industry
Although worldwide demand for oil and gas is expected to grow, overall U.S. wage and salary employment in the oil and gas extraction industry is expected to decline by 6 percent through the year 2014, compared to an employment increase of 14 percent in all industries combined.
In general, the level of future crude petroleum and natural gas exploration and development and, therefore, employment opportunities in this industry, remains contingent upon the size of accessible reserves available and the going prices for oil and gas. Stable and favorable prices are needed to allow companies enough revenue to expand exploration and production projects to keep pace with growing global energy demand, particularly by India and China. Rising worldwide demand for oil and gas is likely to cause higher long term prices and generate the needed incentive to continue exploring and developing oil and gas in this country, at least in the short run. Over the moderate term, fewer reserves of oil and gas in the U.S. will cause a decline in domestic production, unless new oil and gas fields are found and developed.
Environmental concerns, accompanied by strict regulation and limited access to protected Federal lands, also continue to have a major impact on this industry. Restrictions on drilling in environmentally sensitive areas and other environmental constraints should continue to limit exploration and development, both onshore and offshore. However, changes in policy could expand exploration and drilling for oil and natural gas in currently protected areas, especially in Alaska.
In addition, environmental emissions standards already in place or planned for the future are expected to significantly limit the amount of sulfur and carbon dioxide levels that can be emitted by power plants. Employment in the natural gas exploration and production industry normally would grow with the increasing demand for cleaner-burning fuels, such as natural gas. However, recent high natural gas prices are limiting demand and causing some planned future power plants to return to coal as a power source, which could hurt the long term natural gas outlook.
While some new oil and gas deposits are being discovered in this country, companies increasingly are moving to more lucrative foreign locations. As companies expand into other areas around the globe, the need for employees in the United States is reduced. However, advances in technology have increased the proportion of exploratory wells that yield oil and gas, enhanced offshore exploration and drilling capabilities, and extended the production of existing wells. As a result, more exploration and development ventures are profitable and provide employment opportunities that otherwise would have been lost.
Despite an overall decline in employment in the oil and gas extraction industry, job opportunities in most occupations should be good. The need to replace workers who transfer to other industries, retire, or leave the workforce will be the major source of job openings as more workers in this industry approach retirement age, and others seek more stable employment opportunities in other industries. Employment opportunities will be best for those with previous experience and with technical skills, especially qualified professionals and extraction workers who have significant experience in oil field operations and who can work with new technology. More workers will be needed who are capable of using new technologies—such as 3-D and 4-D seismic exploration methods, horizontal and directional drilling techniques, and deepwater and subsea technologies—as employers develop and implement sophisticated new equipment.
In general, the level of future crude petroleum and natural gas exploration and development and, therefore, employment opportunities in this industry, remains contingent upon the size of accessible reserves available and the going prices for oil and gas. Stable and favorable prices are needed to allow companies enough revenue to expand exploration and production projects to keep pace with growing global energy demand, particularly by India and China. Rising worldwide demand for oil and gas is likely to cause higher long term prices and generate the needed incentive to continue exploring and developing oil and gas in this country, at least in the short run. Over the moderate term, fewer reserves of oil and gas in the U.S. will cause a decline in domestic production, unless new oil and gas fields are found and developed.
Environmental concerns, accompanied by strict regulation and limited access to protected Federal lands, also continue to have a major impact on this industry. Restrictions on drilling in environmentally sensitive areas and other environmental constraints should continue to limit exploration and development, both onshore and offshore. However, changes in policy could expand exploration and drilling for oil and natural gas in currently protected areas, especially in Alaska.
In addition, environmental emissions standards already in place or planned for the future are expected to significantly limit the amount of sulfur and carbon dioxide levels that can be emitted by power plants. Employment in the natural gas exploration and production industry normally would grow with the increasing demand for cleaner-burning fuels, such as natural gas. However, recent high natural gas prices are limiting demand and causing some planned future power plants to return to coal as a power source, which could hurt the long term natural gas outlook.
While some new oil and gas deposits are being discovered in this country, companies increasingly are moving to more lucrative foreign locations. As companies expand into other areas around the globe, the need for employees in the United States is reduced. However, advances in technology have increased the proportion of exploratory wells that yield oil and gas, enhanced offshore exploration and drilling capabilities, and extended the production of existing wells. As a result, more exploration and development ventures are profitable and provide employment opportunities that otherwise would have been lost.
Despite an overall decline in employment in the oil and gas extraction industry, job opportunities in most occupations should be good. The need to replace workers who transfer to other industries, retire, or leave the workforce will be the major source of job openings as more workers in this industry approach retirement age, and others seek more stable employment opportunities in other industries. Employment opportunities will be best for those with previous experience and with technical skills, especially qualified professionals and extraction workers who have significant experience in oil field operations and who can work with new technology. More workers will be needed who are capable of using new technologies—such as 3-D and 4-D seismic exploration methods, horizontal and directional drilling techniques, and deepwater and subsea technologies—as employers develop and implement sophisticated new equipment.
posted by Yoda at
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