You need to prepare your business no matter what industry you are in. If you are in the gas and oil industry, you need to be alert and proactive. You need to keep up with the trends and be ready for any opportunities, risks, and uncertainties.
Here is a quick outlook on what 2020 looks like for the gas and oil industry.
In sectors such as the petroleum industry, employee safety and health are a priority since they have risky jobs. While the safety standards for employee health and safety are high, a recent trend in improving it has arisen. One thing that impact that is wearables. For instance, employees can inspect dangerous areas with virtual reality and augmented reality devices like headsets. That way, the workers will not have to be in the area physically and avoid any potential harm.
While oil and gas rarely go hand in hand with the word sustainability, the industry is doing their best. Green energy such as solar and wind energy are sustainable forms of energy, but the oil and gas industry is trying to keep up with the eco-friendly trends. The industry wants to increase its sustainability by lessening their impact on the environment. Focusing on non-carbon, renewable energy is one of the several ways the industry tries to keep up with the consumer’s expectations.
The energy industry is also taking more of a focus on harvesting oil using items like downhole tools. They are also taking a shine on greener forms of energy. However, that does not mean that natural gas does not exist anymore. In recent years, natural gas has been abundant, which is cheaper than oil. It is an environmentally friendly and sustainable alternative to oil.
Higher Cost of Labor
Since the workforce is aging, there is now a shortage of capable and qualified people to fill out the job positions in the industry. Most problems are dominant in the areas of training and retention because much of the younger generation is looking at other fields for jobs. Companies are having a difficult time trying to entice young people to join the industry, which is why many companies offered more benefits and higher salaries. Thus making labor costs higher even if there is technology available to decrease the amount of employees needed.
The industry is dealing with more than a lack of applicants. They are also dealing with a lack of skill. Employee upskilling has not been a focus compared to the advancements in the gas and oil industry’s technology.
Many companies find themselves with an unskilled workforce because of this. If a company sharpens their new workforce’s skills, they could find them in a more favorable position. However, it requires a huge financial and time investment which some companies are not willing to do. While it is a wiser choice to invest in their employees, many companies wish they did not have to deal with this issue.
You need to keep up with the news if you are in the oil and gas industry. It will help you predict your next moves for your company.