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 investment growth. According to the report, the global oil and gas exploration and production sector now employs 11.5 million people, surpassing pre-pandemic levels. The Middle East stands out, being the region with the largest increase in investments in this sector, surpassing pre-pandemic levels.
An interesting finding from the report is that National Oil Companies (NOCs) in the Middle East employ approximately three times as many workers per dollar invested in oil exploration and production than International Oil Companies (IOCs). This indicates a commitment from the region to local employment and 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 investments, the global oil and gas sector 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 forecasts that peak 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, spending discipline, and increased efficiency in investment.
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. Photovoltaic solar energy, wind energy, electric vehicles and battery manufacturing, heat pumps, and critical minerals mining are the key sectors driving job creation in clean energy. Photovoltaic solar energy alone employs 4 million people, while electric vehicles and battery manufacturing have experienced the highest growth.
**Frequently Asked Questions:**
Q: Which region has experienced the highest employment growth in the oil and gas exploration and production sector?
A: The Middle East has witnessed the highest employment growth in the oil and gas exploration and production sector.
Q: Are there sufficient investments in the global oil and gas sector to meet peak oil demand?
A: According to Wood Mackenzie, the current level of investment in oil and gas exploration and production globally 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 generated more jobs globally in the post-pandemic period compared to the fossil fuel sector.