Mercer developed the Oil and Gas Talent Forecast, which focuses on the supply and demand of critical industry jobs, to help organizations better anticipate and manage their future workforce. It provides objective, fact-based talent forecasts that use Mercer’s proven ELM Analysis® (External Labor Market). With this key data in hand, HR can partner with and guide business leaders in making sound, informed human capital decisions under very different industry scenarios. By aligning workforce planning strategy with company goals, proactive employers can operate optimally during times of turmoil and economic uncertainty. This report provides high-level insights from that research and samples of the data we can bring to bear on projects.
Economic Turmoil and Its Impact on Human Capital
After four decades of volatility in oil markets—roughly the length of a career—one might think organizations have become adept at managing ambiguity. Yet 2015 had the industry scrambling to adjust not only capital plans, but also workforce plans. So, despite energy price fluctuations, in 2016, oil and gas players across the value chain — whether independent, integrated, or national oil companies — must work to improve margins and make safety and environmental improvements. And they must do so while ensuring their actions do not endanger the critical skills needed to increase production when supply and demand come back into balance.
Mercer’s 2016 Oil and Gas talent Outlook shows that even with the most pessimistic of the 2025 demand scenarios, talent gaps in the US, Canada, Latin America, Russia, and other Commonwealth of Independent States (CIS) are still prevalent. Understanding then talent outlook and leveraging Mercer’s Talent Forecast can equip the industry with the data and insight necessary to develop a robust workforce planning strategy. With this knowledge, employers can identify locations where the job market has potential to expand, recognize the job positions to be protected, and prioritize their human capital investments.
Given the large amount of unconventional reserves around the world, experts predict that talent demand for unconventional plays will increase globally.
Balancing Short-Term Needs with Long-Term Planning
Although there is a need for HR to address current market realities, the forward-thinking HR leader will put forth a balanced strategy-taking necessary short-term actions while building capability and enhancing organizational performance for the long haul. This view is essential, because oil price is fundamentally based on supply and demand. Even if oil prices do not return over USD100 per barrel levels, as investment cuts take their toll, demand will eventually outpace supply, and organizations will be in growth mode again. To stay ahead of the game, industry employers need to protect forward, with reliable data, ensuring that valued employees stay and future talent is available.
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