A recent report from the International Energy Agency (IEA) has revealed that the global oil and gas sector has experienced a remarkable recovery in terms of job creation and investments. The report indicates that the global oil and gas sector currently employs 11.5 million people, surpassing pre-pandemic levels. The Middle East region stands out as the fastest-growing region, with the only increase in oil and gas investments surpassing pre-pandemic levels.
An interesting finding from the report is that National Oil Companies (NOCs) in the Middle East employ approximately three times more workers per dollar invested in oil than International Oil Companies (IOCs). This indicates the region’s commitment to employment and local development. The thriving LNG sector in the Middle East has been a significant contributor to employment growth, with a 33% increase since 2021.
In terms of investments, the global oil and gas industry is currently experiencing an investment pace of approximately $500 billion per year. According to Wood Mackenzie, this level of investment is sufficient to meet peak oil demand in the 2030s. WoodMac predicts that peak oil demand will be 108 million barrels per day in the early 2030s before entering a terminal decline phase. The report emphasizes that the industry will achieve this through the development of low-cost oil resources, financial discipline, and increased efficiency in investments.
In addition to the growth in employment in the oil and gas sector, the clean energy sector has become a significant job creator. The report highlights that the clean energy sector has added 4.7 million jobs worldwide in the post-pandemic period, surpassing fossil fuels. The key sectors driving job creation in clean energy are photovoltaic solar energy, wind energy, electric vehicles (EVs) and battery manufacturing, heat pumps, and critical mineral mining. Photovoltaic solar energy alone employs 4 million people, while EVs and EV battery manufacturing have experienced the highest growth.
Frequently Asked Questions
Q: Which region has the highest employment growth in the oil and gas sector?
A: The Middle East has recorded the highest employment growth in the oil and gas sector.
Q: Are there enough investments in the global oil and gas industry to meet peak oil demand?
A: According to Wood Mackenzie, the current level of investment in the oil and gas sector is sufficient to meet peak oil demand in the 2030s.
Q: Is the clean energy sector creating more jobs than fossil fuels?
A: Yes, the clean energy sector has added more jobs worldwide in the post-pandemic period compared to the fossil fuels sector.