U.S. energy companies could soon face a serious worker shortage.
As CNNMoney reports, Goldman Sachs believes the American oil industry is about to stage a big comeback from the painful downturn and big job losses caused by oversupply.
“Reacceleration of U.S. oil production may be gradual initially, but the world will still need U.S. shale longer-term,” Goldman analysts wrote in a report last week.
As more oil fields come on line and America’s oil boom gets back on track, there simply won’t be enough people to do the required drilling, well completion and other logistical work. Cheap oil wiped out nearly 170,000 oil and gas jobs since late 2014 as desperate companies scrambled to cut costs and avoid bankruptcy.
That means just to keep up with the expected ramp-up in drilling activity, the oil and gas industry would need to add 80,000 to 100,000 jobs between now and the end of 2018, Goldman predicted in a recent report.
The estimate is based on Goldman’s forecast for U.S. oil production to resume growing next year after the recent drop to two-year lows. That growth would require some 700 oil rigs to be added—and each one supports an average of 120 to 150 employees.
Jeff Bush, president of oil and gas recruiting firm CSI Recruiting, agrees that a “worker shortage” is coming.
“When we get back to a reasonable level of activity, there’s going to be a supply crisis of experienced personnel. I just don’t see any way around that,” says Bush.
CNNMoney has the full story.
