Younger generations key to securing energy sector’s future and tackling skills deficit, report suggests

As part of its My Energy Future initiative, the global non-profit safety and skills body for the energy industry OPITO has published a report on barriers preventing young people from entering the energy sector to glean insights into the steps stakeholders might take to make the industry more appealing to new generations as the global energy landscape shifts from traditional fossil fuels to renewable sources.

With talent acquisition continuing to plague the industry, OPITO recently published its report ‘Energy Sector Entry and the Perceived Barriers.’ The report forms part of the firm’s My Energy Future initiative, an interactive online hub designed to inspire young people to consider a career in the energy industry by providing access to content deemed useful about possible career pathways.

According to OPITO, the energy sector has been facing a skills deficit on a global level for the past decade. International recruitment agencies such as Adecco have identified an aging workforce, technological advancements that many upskilling programs cannot keep up with, and a lack of awareness of the opportunities the sector has to offer as the main reasons for this.

The organization carried out research in “major global energy hubs” – the United Arab Emirates, Malaysia, Brazil, and the USA – to better understand young people’s perceived barriers to entering the energy sector.

“OPITO work globally supporting workforce development and we are seeing first-hand the struggles to recruit at all levels across the energy mix. As nations across the globe look to meet ambitious climate targets, the need for a diverse and sustainable energy mix is more pressing than ever. We must ensure that relevant skills across more mature sectors are applied properly to emerging areas, and that the workforce can see tangible and realistic pathways put in place for them.” said Stephen Marcos Jones, OPITO’s Chief Executive Officer (CEO).

While 74% of young people surveyed across key international energy markets would consider a career in the sector – quoting good pay, good career development, and job security as their main motivators – the perceived requirement for technical qualifications and lack of understanding of opportunities prevent them from doing so, the report suggests.

“Additionally, in terms of raw numbers, human capital is our most precious asset; these complex, multi-phase projects that we need to build a secure energy future will not happen without the right workers in the right numbers. That is why appealing to the younger generations, and modernising attraction practices, is also core to success,” added OPITO’s CEO.

Young people listed requirements for specialist industry qualifications and certifications, a lack of knowledge about the industry and the opportunities it offers, and a need for STEM-based education as their perceived barriers to joining the sector.

‘Engineering’ was the most common job role the respondents thought of in relation to the sector, reflecting the belief that STEM subjects and engineering roles are the main entry points to an energy career. Other roles, such as those dealing with legal or compliance matters, were less commonly associated with the energy sector, suggesting that many young people are unaware of more diverse roles available to them within the sector.

Alex Spencer, OPITO’s Chief Operating Officer (COO), noted: “We are proud to invest significantly in global STEM initiatives through My Energy Future powered by OPITO, which aims to inspire and attract young talent to the energy workforce. Understanding this data and being able to share it with the industry to demonstrate awareness of the challenges in attracting new talent into the industry, is a vital next step for OPITO in supporting the sector to adapt its approach and develop innovative recruitment strategies.”

The survey indicates that 67% of participants support the energy transition, with the level of support reaching 68% among the 18–24 age group. Geographically speaking, the UAE is one of the countries least in favor of the energy transition, with 38% of young people surveyed favoring fossil fuels as a source of energy. On the other hand, almost 80% of respondents from Brazil backed the energy transition trend.

The organization hopes the data collected will support companies globally to identify opportunities to engage more effectively with young people and develop the sector’s future workforce, by demonstrating the wide range of opportunities available, engaging at a younger age, and informing students of STEM qualifications needed for the industry. 

“This research makes it clear that we must provide the correct tools to allow young people to fulfil their ambition for energy careers. Through global initiatives like My Energy Future, OPITO’s Energy Transition Qualifications and by working closely with governments and industry leaders, we remain committed to making sure that individuals are equipped with the skills they need to support the demands of the energy transition both now and in the future,” said Spencer.

As stated in the report, a new approach looking to build innovative apprenticeship opportunities alongside other upskilling and on-the-job training programs needs to be considered alongside more traditional education pathways. Focus on meta-skills, which equip young people with skills that can be applied in several contexts across sectors, is seen as a means to achieve this.

Some initiatives between oil and gas players and academia in this regard include the one between Eni and MIT, which decided to extend its decarbonization collaboration in March. In Lithuania, KN Energies, the Lithuanian Maritime Academy (LAJM), and Hoegh LNG Klaipėda inked a deal to offer internships to students to gain practical skills in the fields of maintenance, management, and servicing of LNG terminals and LNG carriers.