Shortage of highly qualified engineers could hinder growth of the oil and gas industry

Shortage of engineers drives up pay in oil industry

A shortage of highly qualified workers threatens growth of the oil and gas industry, a new report has revealed.

Published by technical consultancy company DNV GL, the report says the dwindling pool of engineering workers is driving up pay to an ‘unprecedented’ high despite the general pressure on cost reduction in the economically sensitive period.

"The sector is increasingly moving into challenging environments which require deep technical expertise to provide solutions, yet many companies are faced with ongoing skills shortage,” said Elisabeth Torstad, the CEO of DNV GL.

"This need is driving up salaries at a time when there is already pressure to reduce costs. While technology can go some way to plugging the gap, it can't fully replace human intervention.”

Despite the weakening oil prices, the report suggests, the industry should focus on investing in talent and developing professional skills with a longer term outlook in mind.

"While we cannot fully duplicate and replace the experience of retiring professionals in the sector, we can work smarter through structured approaches to managing industry knowledge and ensuring that the competence built is effectively transferred to younger generations," Torstad said.

In spite of the skills shortage, DNV GL, the world’ largest ship and offshore classification society and a leading technical advisor to the global oil and gas industry, said it remained optimistic about the oil sector’s outlook for 2014.

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