A recent report from the International Energy Agency (IEA) has revealed that the global oil and gas industry has experienced a significant recovery in terms of job creation and increased investment. The report indicates that the global oil and gas exploration and production sector now employs 11.5 million people, surpassing pre-pandemic levels. It is important to highlight that the Middle East region stands out for its strong growth, with the only increase in oil and gas exploration and production investment that surpasses pre-pandemic levels.
An interesting fact from the report is that National Oil Companies (NOCs) in the Middle East employ approximately three times more workers per dollar invested in oil exploration and production than International Oil Companies (IOCs). This demonstrates the region’s commitment to employment and local development. The thriving liquefied natural gas (LNG) sector in the Middle East has been a significant contributor to employment growth, with a 33% increase since 2021.
In terms of investment, the global oil and gas exploration and production sector is currently experiencing an investment of approximately $500 billion per year. According to Wood Mackenzie, this level of investment is sufficient to meet the maximum oil demand in the 2030s. WoodMac predicts that maximum oil demand will reach 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, capital discipline, and increased investment efficiency.
In addition to the growth in jobs in the oil and gas sector, the clean energy sector has emerged as 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. Photovoltaic solar energy (PV), wind energy, electric vehicles (EVs) and battery manufacturing, heat pumps, and critical mineral mining are the key sectors driving job creation in clean energy. Photovoltaic solar energy alone employs 4 million people, while EVs and EV battery manufacturing have experienced the highest growth.
Frequently Asked Questions (FAQ):
Q: Which region has the highest job growth in the oil and gas exploration and production sector?
A: The Middle East has the highest job growth in the oil and gas exploration and production sector.
Q: Are there sufficient investments in the global oil and gas exploration and production industry to meet maximum oil demand?
A: According to Wood Mackenzie, the current level of global investment in oil and gas exploration and production is sufficient to meet maximum 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 fuel sector.