AAPG EXPLORER Edith Allison, director <strong>of</strong> AAPG’s Geoscience and Energy Office in Washington, D.C., can be contacted at eallison@aapg.org; or by telephone at 1-202-643-6533. POLICYWATCH 56 MAY 2013 WWW.AAPG.ORG Energy industry impacts NAS Report Tracks Workforce Issues By EDITH ALLISON, GEO-DC Director The National Academy <strong>of</strong> Science recently released its report “Emerging Workforce Trends in the U.S. Energy and Mining Industries: A Call to Action,” which determines that the demand for energy and mining workers is higher than the current supply – despite <strong>of</strong>fers <strong>of</strong> high salaries. The report also concludes the demand for energy and mining workers will continue for many years, and the factors that drive the workforce shortage will grow unless corrective actions are taken. ALLISON This report is timely because major provisions <strong>of</strong> the America COMPETES (Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science) Reauthorization Act <strong>of</strong> 2010 are set to expire in 2013. The Act provides, among other things, funding authorizations for federal physical sciences and engineering research programs, as well as STEM (science, technology, engineering and mathematics) education programs. The connection between quality <strong>of</strong> life and energy and mining workers is simple: The nation and the world depend on energy and mineral resources to keep their people and economies thriving, and a skilled workforce is essential to meet the nation’s and the world’s energy and mineral needs. The National Academies report looks at energy sectors, including solar, wind, nuclear, and carbon capture, use and sequestration. This article will focus primarily on the oil and gas extraction industry. First Priority Accurate data and projections on the energy workforce are necessary to define the scope <strong>of</strong> labor shortages and requirements for new workers, but consistent and detailed data are lacking. A sample <strong>of</strong> the data evaluated in the National Academy report shows the inconsistencies and lack <strong>of</strong> granularity to assess specific oil and gas occupations: u PriceWaterhouseCoopers (2009) estimated the total operational oil and gas direct workforce as 2,123,291. u The Bureau <strong>of</strong> Labor Statistics (BLS, 2010) estimated the U.S. workforce in oil and gas extraction, well drilling and support activities for oil and gas operations at about 494,200. This number excludes self-employed workers. u A subset <strong>of</strong> that population – the oil and gas extraction workforce, which includes self-employed workers – was estimated at 158,900 in 2010 (BLS). u The BLS projects future employment in the oil and gas extraction workforce will increase by 23,200 between 2010 and 2020. u The Energy Information Administration (EIA) estimates total employment in oil and gas extraction was 452,891 in 2010 and it is expected to rise to 459,032 in 2020, and then decline to 404,866 in 2030 and 383,205 in 2035, as U.S. oil production starts to decline in 2030 and gas production starts to decline in 2035. There are too few younger workers to replace those who are retiring. Workforce Issues The report finds the most important factor impacting all U.S. industries is that the large cohort <strong>of</strong> baby boomers are expected to retire in the next decade, and there are too few younger workers in the pipeline to replace those retiring. Because petroleum-industry hiring was very low from the mid-1980s through about 2000, there also is an extreme shortage <strong>of</strong> geoscientists and petroleum engineers with 15 to 25 years <strong>of</strong> experience. This means a significant shortage <strong>of</strong> knowledgeable and experienced managers and mentors for younger workers. Finding ways to retain the knowledge and experience <strong>of</strong> the retiring workers is an important concern. The report also finds the current pipeline <strong>of</strong> students with strong STEM backgrounds is insufficient to meet industry needs, and efforts to grow this population are insufficient to meet future industry needs. Although the majority <strong>of</strong> energy and mining jobs do not require a four-year degree, many do require some education beyond high school; for example, there is a large demand for geological and engineering technicians with a two-year degree or certificate. One bright spot is that community colleges have rapidly moved to provide two-year industry-focused programs and help funnel students into four-year STEM curricula. Other workforce issues face the oil and gas industry: u The U.S. petroleum industry faces growing international competition for workers as oil and gas production grows around the world. The problem is amplified because many foreign students in U.S. colleges and universities do not stay in the United States due to the difficulty in getting work visas. u There is a shortage <strong>of</strong> faculty in geoscience and petroleum engineering. Although the faculty decline has slightly reversed in petroleum in recent years, it is expected to grow as older faculty members retire. u Federal and state governments See Workforce, page 58
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