A new report from the International Energy Agency (IEA) has revealed that the global oil and gas industry has experienced a remarkable recovery in terms of job creation and increased investments. According to the report, the global upstream oil and gas sector now employs 11.5 million people, surpassing pre-pandemic levels. The Middle East, in particular, stands out as the region with the highest growth, recording the only increase in upstream oil and gas investments that surpass 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 for every dollar invested in oil than International Oil Companies (IOCs). This indicates the region’s commitment to local employment and development. The thriving Middle Eastern LNG sector has been a significant contributor to employment growth, with a 33% increase since 2021.
In terms of investments, the global upstream oil and gas industry is currently experiencing an investment rate of approximately $500 billion per year. According to Wood Mackenzie, this level of investment is enough to meet peak oil demand in the 2030s. WoodMac predicts a peak oil demand of 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 employment in the oil and gas sector, the clean energy sector has emerged as a significant job generator. 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, wind energy, electric vehicles (EVs) and battery manufacturing, heat pumps, and critical mineral mining are the key driving sectors for job creation in clean energy. Photovoltaic solar energy alone employs 4 million people, while EVs and battery manufacturing have experienced the highest growth.
Frequently Asked Questions (FAQ)
Q: Which region has the highest employment growth in the upstream oil and gas sector?
A: The Middle East has recorded the highest employment growth in the upstream oil and gas sector.
Q: Are there enough investments in the global upstream oil and gas industry to meet peak oil demand?
A: According to Wood Mackenzie, the current global investment level in upstream oil and gas 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.