Editorial Comment

Increased activity in the sector is being seen across the Middle East, South America, the UK, and Brazil. In North America, spending has been forecast to reach US$17.5 billion. According to the regional report from Wood Mackenzie in this issue of Oilfield Technology, production in the US Gulf of Mexico is also set to reach an all-time high by 2025, with 2.3 million boe produced each day and a number of greenfield projects in the works. An increased demand for oil has been a huge driver behind the boom in offshore activity; 2019 saw crude oil production hit 95 million bpd, and by 2021, demand swung to 96.5 million bpd.
Yet, growth in demand and production requires a full and skilled workforce, and the oil and gas industry in particular is currently suffering labour shortages, as workers migrate towards the renewable energy space, grow older and retire from the industry, or are discouraged from the sector due to arduous conditions, and remote locations. A recent report from McKinsey & Company has revealed that industry costs could increase between 6 – 10% in 2023, in part due to labour uncertainties.²

Arguably therefore, more needs to be done to incentivise workers. According to the Global Energy Talent Index, 44% of oil and gas workers saw salary increases last year, and more generous pay packets have increased job satisfaction for some.³ Yet for others, this may not be enough. Despite having seen significant improvements in the health and safety sphere over the last few years, the dangers involved with confined spaces, and working at height, as well as potential fire and explosion risks, could deter workers from a career in the industry. In its ‘2022 Health, Safety & Environment Report,’ OEUK noted an increased over-seven-day injury rate compared to the previous year, demonstrating a need for a continual focus on improving safety in the industry.⁴

In an article from EM&I in this issue of Oilfield Technology, collaboration and technical innovation are discussed as key drivers to create a safer working environment. Diverless technologies and innovations reducing the need for perilous confined space entry for example are at the forefront of risk mitigation for offshore workers, and these advances can only increase the appeal of offshore work moving forward. Whilst improving safety, technology and digitalisation could also be used to attract workers and bridge the gap during the labour shortage by inviting in a new digitally-minded workforce; with the use of cloud-based tools and platforms that can boost productivity, more can be achieved with reduced labour. Perhaps, therefore, a technology-driven and digitally enhanced oilfield is the key to a smarter, safer workplace.

Emily Thomas